A Resolution Plan is not a recovery/sale/auction/liquidation – Dinesh Gupta Vs. Vikram Bajaj Liquidator M/s Best Foods Ltd. – NCLAT New Delhi

NCLAT held that it cannot be gainsaid that the aim of Resolution is for maximisation of value of Assets of the Corporate Debtor and thereby for the benefit of all Creditors. The vital priority of objective is (i) Resolution (ii) maximisation of value of assets of the Corporate Debtor (iii) promoting entrepreneurship, availability of credit and balancing the interests. A Resolution Plan is not a recovery/sale/auction/liquidation. Through a Resolution Plan no individual is purchasing or selling the Corporate Debtor in fact, for selling the Corporate Debtor there is no requirement of a Resolution Plan in the considered opinion of this Tribunal. For approving a plan, there is no requirement of application of mind or voting as the case may be. No wonder, based on a Resolution Plan few rights in the Corporate Debtor or Assets and Liabilities are bartered, and that being an ancillary one as opined by this Tribunal.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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