Some minimum entitlement to Operational Creditors may be examined by Government and IBBI, based on the amount realised in the Resolution Plan over and above the liquidation value – Excel Engineering Vs. Mr. Vivek Murlidhar Dabhade RP of New Phaltan Sugar Works Ltd. – NCLAT New Delhi

NCLAT held that it is the final discretion of the Collective Commercial Wisdom in relation to (1) The amount to be paid (2) The quantum of money to be paid, to a certain category or the incidental category of Creditors, balancing the interests of the Stakeholders and the Operational Creditors, as the case may be. The limited judicial review available to Adjudicating Authority lies within the four corners of Section 30(2) of the Code. We are of the earnest view that some minimum entitlement to the Operational Creditors may be examined by the Government and the IBBI, based on the amount realised in the Resolution Plan over and above the liquidation value.

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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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