Where CoC has approved with more than 90% of voting share, it is not open to an Adjudicating Authority/NCLT in law to reject the CIRP withdrawal application – Mayuras Industrial Services Vs. S R Shriraam Shekher RP of Prodeb Brewery Technology Belgium Pvt. Ltd. – NCLAT Chennai
September 25, 2023
Hon’ble NCLAT held that:
(i) One cannot remain in oblivion of the fact that the ‘mandate of the Code’ is for Resolution and Revival of Companies.
(ii) It must be borne in mind that the jurisdiction of an Adjudicating Authority/Tribunal u/s 12 of the Code is very much limited. In reality, where CoC had approved with more than 90% of voting share, it is not open to an Adjudicating Authority/Tribunal in law to reject the application.
(iii) The conclusion arrived at by the Adjudicating Authority/Tribunal in allowing the IA is free from legal infirmities.