The outcome of the avoidance transaction under Sections 43, 45, 47, 49, 50 of the Code cannot be given to the Successful Resolution Applicant and it must go to the Corporate Debtor’s Creditors – 63 Moons Technologies Ltd. Vs. The Administrator of Dewan Housing Finance Corporation Ltd. – NCLAT New Delhi
NCLAT allows the appeal against an order dated 07.06.2021 passed by the NCLT, Mumbai Bench approving the Resolution Plan for DHFL in which it was stipulated that recoveries from Avoidance transactions enure to the benefit to Resolution Applicant. NCLAT holds that the term in the Resolution Plan that permits the Successful Resolution Applicant to appropriate recoveries, if any, from avoidance applications filed under Section 66 of the Code ought to be set aside. The Resolution Plan be sent back to the CoC for reconsideration on this aspect.