Whether Adjudicating Authority could have precluded the consideration of the 12A proposal of the Suspended Directors by the CoC on the ground that Resolution Plan was under consideration of NCLT – Pratham Expofab Pvt. Ltd. Vs. Mr. Anil Matta, RP of Primrose Infratech Pvt. Ltd. and Ors. – NCLAT New Delhi
Hon’ble NCLAT while upholding the decision of NCLT held that the suspended management cannot insist, impose or force the consideration of its settlement proposal by the CoC when the CoC in the exercise of its business decision has categorically decided against considering any such proposal from the Appellant.
The Hon’ble Tribunal also held that when a resolution plan has already been received by the CoC and the CoC in the exercise of its commercial wisdom has decided to only consider this plan and has also rejected with majority voting the settlement plan given by the Appellant, no error has been committed by the Adjudicating Authority in disallowing further opportunity to the Appellant to submit a Section 12A proposal