Contingent amount reserved in the Resolution Plan is Commercial decision of CoC & not under the scope of judicial review under Section 61(3) of IBC – IIFCL Mutual Fund Vs. Committee of Creditors of GVR Infra & Ors. – NCLAT New Delhi

NCLAT held that this is astonishing that while approving the resolution plan as an assenting creditor at the culminating stage of insolvency resolution process, the Appellant should call in question the action of Resolution Professional, who had no role to play when the proposed Resolution Plan emanating from the Successful Resolution Applicant was put to vote by the Committee of Creditors. The scope of judicial review under Section 61(3) of I&B Code being limited to grounds enumerated therein and no material irregularity having been shown to have occurred during the CIRP before approval of the Resolution Plan by the Committee of Creditors, we are of the considered opinion that the Appellant has no case. It is not the Appellant’s grievance that he has been discriminated against as a dissenting Financial Creditor or that his admitted claim has not been taken into consideration while allocating the amount in terms of the distribution mechanism found perfectly in order by the Adjudicating Authority. 

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