One Page #7 – In matter of M/s Samyu Glass Pvt Ltd
With regards to Objections raised by NCLT in the approval of Resolution Plan
Court: NCLT-Hyd & NCLAT, Chennai. (AT#23 Dt 19.04.2021)
1. Facts of the Case:
- Appellant, M/s Kals Group is the successful Resolution Applicant; whose Rplan is approved by COC with 100% voting.
- Application filed was filed by the RP for approval of NCLT u/s 36 of I&B Code r/w Reg 39(4) of CIRP Regulations.
- NCLT directed the COC to take fresh bids from the existing 2 Resolution Applicants (M/s KALS Group & Mr Chava Suresh Babu) and to submit a fresh Rplan for consideration; for the reason that both the Rplans are almost placed equally in terms of resolution amount payable by them.
2. Case Laws:
- Srawan Kumar Agarwal consortium & Others V Rituraj Steel Pvt Ltd & Ors (Supreme Court): It was held that a direction for rebidding despite approval of the Rplan by COC is not valid law.
- Kalpraj Dharamshi (Supreme Court): Commercial wisdom of COC is not to be interfered with excepting the limited scope as provided u/s 30& 31 of I&B Code.
3. Findings & Judgement:
- The above case laws squarely apply to the facts of this case.
- NCLAT interferes with the impugned order passed by NCLT and put aside the same in furtherance of substantial cause of justice.
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