NCLT allows Resolution Applicant to re-submit the resolution plan since Resolution plan was rejected on the technical ground, not on commercially viable ground – Alpha Alternative Holdings Pvt. Ltd. & Anr Vs. Union Bank of India & Ors – NCLT Ahmedabad Bench
The Adjudicating Authority held that the CoC ought to have allowed the applicant to resubmit his offer, if any. However, we are faced with one hurdle that since the CoC rejected the plan whether we can direct the CoC to reconsider it by allowing the applicant to have negotiations on plan value? We hold that the plan has not been rejected by the CoC on the findings that it is not commercially viable. Resolution plan has been rejected on the technical ground as noted above. In case of Committee of Creditors of CoC of Essar Steel India Limited Vs. Satish Kr Gupta [2019] ibclaw.in 07 SC. The Apex Court had demarcated the boundary of jurisdiction of this authority in case of such eventualities. In view of the facts of this case, and the Law laid down by the Hon’ble Supreme Court as noted above, we allow this application, we direct the RP and the CoC to call the applicant and allow him to re-submit the resolution plan and may consider the same whether the plan is commercially viable and take an appropriate decision thereon.
