25 (2) (i)

Resolution Professional is an Officer of the Court and he is to exercise reasonable and responsible care for the company whose property and affairs are entrusted with him – Canara Bank Vs. Ms. Mamta Binani, RP of Aristo Texcon Pvt. Ltd. – NCLAT New Delhi

NCLAT upheld decision of the AA and dismissed the appeal which was filed on the ground that AA while passing the impugned order had failed to consider that there is no equal treatment between the Financial Creditors while distributing Funds under the Resolution Plan. NCLAT held that Resolution Professional is an Officer of the Court and he is to exercise reasonable and responsible care for the company whose property and affairs are entrusted with him. In case, the Resolution Plan is not meeting the requirement of Section 30 of the Code, the Resolution Professional is empowered to refuse to present the Plan to the CoC. An ex-facie opinion is to be offered to the CoC by the Resolution Professional that the Law was not violated. Subjective satisfaction is a pre-requisite for approval of Resolution Plan. A threadbare scrutiny and a study of the Resolution Plan is to be made prior to the ‘satisfaction’ being arrived at by the Adjudicating Authority in a written form. The Code speaks of accountability of the Insolvency Professional and also the CoC who comprise of the Lender Banks.

Resolution Professional is an Officer of the Court and he is to exercise reasonable and responsible care for the company whose property and affairs are entrusted with him – Canara Bank Vs. Ms. Mamta Binani, RP of Aristo Texcon Pvt. Ltd. – NCLAT New Delhi Read Post »

Waiver of Valuation, EOI, Information Memorandum, Resolution Plan etc. in Reverse CIRP of Real Estate Project – Mahesh Chandra Purohit RP for Coral Infragold Pvt. Ltd. – NCLT Jaipur Bench

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Waiver of Valuation, EOI, Information Memorandum, Resolution Plan etc. in Reverse CIRP of Real Estate Project – Mahesh Chandra Purohit RP for Coral Infragold Pvt. Ltd. – NCLT Jaipur Bench Read Post »

While the Resolution Plan will generally provide a higher value than the liquidation value but in case of Real Estate Project may not be always feasible and homebuyers are in dire need of getting their homes at the earliest – Lotus City Plot Buyers Welfare Association Vs. Three C Homes Pvt. Ltd & Ors. – NCLAT New Delhi

The Adjudicating Authority has rejected the Resolution Plan on the basis of that liquidation value of Corporate Debtor is Rs. 480.70 Crore while Resolution Plan involves infusion of only Rs.95 crore by the Resolution Applicant and that too over a period of two years and other points and has directed the Resolution Professional to file appropriate application for seeking liquidation order.
NCLAT remanded back the case and held that there is a difference of CoC where they are Banks and Institutional lenders as members, while the CoC in the Homebuyers are not so expert in finance and related valuations. Hence, CoC in case of the commercial organisations will have a different perspective and expertise while in case of Real Estate projects where the CoC are totally comprising of homebuyers may not have the same expertise and perspective. While the Resolution Plan will generally provide a higher value than the liquidation value but in case of Real Estate Project may not be always feasible and homebuyers are in dire need of getting their homes at the earliest.

While the Resolution Plan will generally provide a higher value than the liquidation value but in case of Real Estate Project may not be always feasible and homebuyers are in dire need of getting their homes at the earliest – Lotus City Plot Buyers Welfare Association Vs. Three C Homes Pvt. Ltd & Ors. – NCLAT New Delhi Read Post »

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