If the evaluation criteria suggest that only top three Resolution Applicants should be negotiated, the Appellant who ranked 6th among the Resolution Applicants cannot have any right to participate for re-negotiation over the decision of the CoC- Kundan Care Products Ltd. vs Mr. Surya Kanta Satapathy & Ors.- NCLAT
February 6, 2020
NCLAT has held that it is a settled law that the Resolution Applicant has no right for re-negotiation or further negotiation. After submission of the Resolution Plan, if it is found in order and in accordance with Section 30(2), it is required to be placed before the Committee of Creditors. The process of evaluation is guided by the said criteria as set out in the ‘Request for Resolution Plan’. If the evaluation criteria suggest that only top three Resolution Applicants should be negotiated, the Appellant who ranked 6th among the Resolution Applicants cannot have any right to participate for re-negotiation over the decision of the CoC. In “Essar Steel India Limited, the Hon’ble Supreme Court held that the commercial aspects of a Resolution Plan, its viability or otherwise, and, distribution of proceeds amongst stakeholders, were to be looked only by the CoC who are competent to go through all relevant aspects. Therefore, this Appellate Tribunal cannot deliberate on such issue. The Resolution Plan approved by the Adjudicating Authority can be challenged only on the ground as mentioned in Section 61(3). In the present case, as no ground has been made out in terms of Section 61(3), we are not inclined to interfere with the Resolution Plan of 3rd Respondent duly approved by the Adjudicating Authority.