Agnipa Energy Pvt. Ltd.

NCLAT clarifies that Adjudicating Authority cannot reject the liquidation decision of Committee of Creditors (CoC) – Bank of India Vs. Pradeep Kumar Goenka, RP of Agnipa Energo Pvt. Ltd. and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) The decision in Amit Bharana and Ors vs. Gian Chand Narang (2021) ibclaw.in 12 NCLAT is crystal clear and settle the principle of paramount supremacy of the commercial wisdom of the CoC.
(ii) There is hardly any scope for judicial interference on the part of the Adjudicating Authority or the Appellate Tribunal except ensuring that the Resolution Plan meets the requirements of the Code and the related regulations.
(iii) It is beyond doubt that the commercial wisdom of the CoC is required to be honoured in letter and spirit.
(iv) There is no role for Adjudicating Authority to interfere on such unfounded reasoning as recorded in the Impugned Order.
(v) The Impugned Order is found to be perverse and illegal.

NCLAT clarifies that Adjudicating Authority cannot reject the liquidation decision of Committee of Creditors (CoC) – Bank of India Vs. Pradeep Kumar Goenka, RP of Agnipa Energo Pvt. Ltd. and Ors. – NCLAT New Delhi Read Post »

Whether it is a Commercial Decision/Wisdom of the CoC to go for liquidation of a MSME Unit, when the Suspended Management of the Corporate Debtor has offered Resolution Plan worth more than 20 times of the liquidation value – Pradeep Kumar Goenka, RP – NCLT Guwahati Bench

The Adjudicating Authority holds that in our considered opinion, it is neither Commercial Wisdom nor a Commercial Decision of the CoC /FC to reject a Resolution Plan which offer to them an amount of Twenty times more than the Liquidation Value. In view of this the prayer made by the Applicant for liquidation of the CD needs to be rejected in achieving the Objectives of the IBC and the interest of all Stakeholders including the sole FC and the stalled MSME Unit. Hence the IA filed for Liquidation is hereby rejected.

Whether it is a Commercial Decision/Wisdom of the CoC to go for liquidation of a MSME Unit, when the Suspended Management of the Corporate Debtor has offered Resolution Plan worth more than 20 times of the liquidation value – Pradeep Kumar Goenka, RP – NCLT Guwahati Bench Read Post »

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