The valuation of Corporate Debtor cannot be challenged by anyone when Resolution Plan has already been approved by NCLT | If CoC disagree with Valuation Report, it would direct for fresh valuation, where CoC agrees, the decision of CoC is final and there is no scope for judicial review – Jai Kishore Gupta Vs. Balaji Paper and Newsprint Pvt. Ltd. and Anr. – NCLT Kolkata Bench
Hon’ble NCLT Kolkata Bench held that:
(i) The valuation of the Corporate Debtor cannot be challenged at this stage by anyone when the resolution plan has already been approved by us.
(ii) Question of valuation carried out by two independent Registered Valuers duly registered with IBBI cannot be challenged by the Appellants as the same being a question of fact is normally not interfered by Courts.
(iii) If the CoC disagree, it would direct for fresh valuation. Where the CoC agrees, the decision of the CoC in this regard is final and there is no scope for judicial review.
(iv) It is the duty of the Financial Creditors and the Resolution Professional, to invoke personal guarantees as well as corporate guarantees furnished for the loans and advances taken by the Corporate Debtor for the purpose of maximisation of wealth of the Corporate Debtor.