Mere filling of Expression of Interest does not create any right over the proposed Resolution Applicant, so as to prevail over the commercial wisdom of CoC – M/s Aaryavart Infrastructure Private Limited Vs. Shri Parthiv Parikh RP of M/s. M. V. Omni Projects (India) Limited & Ors – NCLT Ahmedabad Bench
NCLT held that it is needless to mention herein that the approval or acceptance of Resolution Plan is the prerogative of the CoC and their commercial wisdom. The Hon’ble Supreme Court in its judgment in Civil Appeal No. 10673 of 2018 in K. Sashidhar Vs. Indian Overseas Bank & Ors. [2019] ibclaw.in 08 SC comprising of Hon’ble Justice A.M. Khanwilkar and Hon’ble Justice Ajay Rastogi observed that Adjudicating Authority has no jurisdiction to interfere with the commercial wisdom of the CoC. It is a matter of fact that on publication or invitation of Expression of Interest, any Resolution Applicant may file their Expression of Interest. Mere filling of Expression of Interest does not create any right over the proposed Resolution Applicant, so as to prevail over the commercial wisdom of CoC. The RP has to act as per Section 30 of the IB Code and the decision are being taken by the member of CoC and on verification of Resolution Plan, they may take the decision upon the Plan so submitted by the Resolution Applicant(s).