In this case, the Applicant has challenged the termination of Agreements that the RP terminated the lease without the written consent of both parties in violation of the Agreement. The RP has contended that the Applicant is a Related Party of the Corporate Debtor. NCLT New Delhi Bench Court-II held that: (i) In terms of Section 28(1)(f) read with Section 28(3) of IBC 2016, the “related party transactions” cannot be undertaken by the RP during the period of CIRP without the approval of the CoC with 66% of the votes. In the instant case, the CoC instead of giving approval to continue with “the related party transactions in terms of Lease Deed and Service Agreements” gave its consent to terminate or did not object to termination of those related party agreements, in its commercial wisdom; and (ii) In view of the settled position, related party contracts can be sought to be terminated via the relevant Clauses in the Resolution Plan. Therefore, we find no illegality committed by the RP in terminating the Service Agreement dated 01.09.2006, Lease Agreement dated 31.12.2013 along with Supplementary Agreement dated 01.01.2014. (iii) The application is Dismissed, being devoid of merits.
Username Password Remember Me …
Username Password Remember Me …
Username Password Remember Me …
Username Password Remember Me …