Whether after approval of Resolution Plan of a Resolution Applicant by CoC and filing of application for Adjudicating Authority’s approval, the CoC has any jurisdiction to substitute the SRA with another Resolution Applicant who was not part of CIRP? – Swan Energy Ltd. Vs. Chandan Prakash Jain, RP of E-Complex Pvt. Ltd. and Ors. – NCLAT New Delhi
In this important judgment, Hon’ble NCLAT held that:
(i) The clear provision of the statute is that the Resolution Plan received from a person who does not appear in the final list of Prospective Resolution Applicants (PRAs) cannot be considered.
(ii) The CoC has no jurisdiction to approve the Resolution Plan treating it to be the plan of Respondent No. 4 or to substitute Respondent No. 4 as Resolution Applicant.
(iii) The clause for infusion of equity cannot be read to mean that SRA can nominate its nominee as SRA. Infusion of equity is entirely different from Respondent No.4 becoming the SRA. The above clause does not in any manner supports the submission of the Respondents.
(iv) The CoC has no jurisdiction to modify the Resolution Plan already approved by the CoC and submitted before the Adjudicating Authority for approval under Section 30(6) of the IBC with a caveat that in appropriate cases, under order of the Adjudicating Authority or COC on its own can pass a resolution for modifying the Resolution Plan to make it compliant of Section 30(2).