Whether a resolution plan which is already approved by the CoC, and which is pending before the Adjudicating Authority(AA) for approval can be withdrawn for reconsideration by the CoC on the discovery of new facts and events relating to the resolution applicant and whether the AA is empowered to send back the resolution plan, on such request, to the CoC – Asset Reconstruction Company (India) Ltd. Vs. Nivaya Resources Pvt. Ltd. – NCLT Ahmedabad Bench
The Adjudicating Authority held that in our view, the resolution plan can be sent back for reconsideration to the CoC, considering the changed circumstances and the commercial wisdom of the CoC, with 96.95% voting, to seek permission of Adjudicating Authority for reconsideration of the resolution plan need to be considered for better prospects of Resolution. In our view, the Tribunal is well within its rights to send back the resolution plan for reconsideration to the CoC, on request made by the CoC in its commercial wisdom. In our view that the resolution plan can be sent back to CoC, we are supported by the order of the Hon’ble NCLAT in the case of Bank of Maharashtra vs Videocon Industries Ltd. & Ors. (2022) ibclaw.in 21 NCLAT wherein the Hon’ble NCLAT held that Adjudicating Authority is competent to send back a resolution plan to the CoC for re-consideration.