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The valuation of Corporate Debtor cannot be challenged by anyone when Resolution Plan has already been approved by NCLT | If CoC disagree with Valuation Report, it would direct for fresh valuation, where CoC agrees, the decision of CoC is final and there is no scope for judicial review – Jai Kishore Gupta Vs. Balaji Paper and Newsprint Pvt. Ltd. and Anr. – NCLT Kolkata Bench

Hon’ble NCLT Kolkata Bench held that:

(i) The valuation of the Corporate Debtor cannot be challenged at this stage by anyone when the resolution plan has already been approved by us.
(ii) Question of valuation carried out by two independent Registered Valuers duly registered with IBBI cannot be challenged by the Appellants as the same being a question of fact is normally not interfered by Courts.
(iii) If the CoC disagree, it would direct for fresh valuation. Where the CoC agrees, the decision of the CoC in this regard is final and there is no scope for judicial review.
(iv) It is the duty of the Financial Creditors and the Resolution Professional, to invoke personal guarantees as well as corporate guarantees furnished for the loans and advances taken by the Corporate Debtor for the purpose of maximisation of wealth of the Corporate Debtor.

The valuation of Corporate Debtor cannot be challenged by anyone when Resolution Plan has already been approved by NCLT | If CoC disagree with Valuation Report, it would direct for fresh valuation, where CoC agrees, the decision of CoC is final and there is no scope for judicial review – Jai Kishore Gupta Vs. Balaji Paper and Newsprint Pvt. Ltd. and Anr. – NCLT Kolkata Bench Read Post »

NCLT allows Promoters of MSME to submit Resolution Plan at belated stage – Mr. K.C.M. Kumar Vs. Mr. Raghu Babu Gunturu, RP of M/s. Speck Systems Ltd. – NCLT Hyderabad Bench

allowed and the Applicant is permitted to submit his Resolution Plan to the RP within 20 days from the date of this Order and the RP shall collate the said Resolution Plan and place before the CoC and the CoC shall negotiate with the existing Resolution Applicants including the Applicant herein and decide on the Resolution Plans, considering the commercial viability and technical feasibility of the Plan.

NCLT allows Promoters of MSME to submit Resolution Plan at belated stage – Mr. K.C.M. Kumar Vs. Mr. Raghu Babu Gunturu, RP of M/s. Speck Systems Ltd. – NCLT Hyderabad Bench Read Post »

In case the record of Information Utility shows that there is a debt which is in default, the Adjudicating Authority or the Appellate Authority are not required to further examine the record maintained by the Information Utility – Vipul Himatlal Shah Vs. Teco Industries – NCLAT New Delhi

NCLAT held that it is clear that in case the record of Information Utility shows that there is a debt which is in default, the Adjudicating Authority or the Appellate Authority are not required to further examine the record maintained by the Information Utility, moreso when the record of the Information Utility is deemed authenticated and no dispute or refutation of said record has been done by the corporate debtor earlier. We also note that in the judgment of Rushabh Civil Contractors Pvt. Ltd. vs. Centrio Lifespaces Ltd. (2022) ibclaw.in 32 NCLAT , which has been cited by the Learned Counsel for Appellant, the record that formed the basis for financial debt and default was found to be forged and fabricated, which is not the case in the present appeal. Therefore, this judgment does not come to the rescue of the Appellant. The Adjudicating Authority has not committed any error in admitting the section 7 application filed by the financial creditor M/s. Teco Industries. The appeal is therefore dismissed as being devoid of merit and disposed of accordingly.

In case the record of Information Utility shows that there is a debt which is in default, the Adjudicating Authority or the Appellate Authority are not required to further examine the record maintained by the Information Utility – Vipul Himatlal Shah Vs. Teco Industries – NCLAT New Delhi Read Post »

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