One Page #7 – In matter of M/s Samyu Glass Pvt Ltd

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:

  1. Appellant, M/s Kals Group is the successful Resolution Applicant; whose Rplan is approved by COC with 100% voting.
  2. 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.
  3. 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:

  1. 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.
  2. 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:

  1. The above case laws squarely apply to the facts of this case.
  2. NCLAT interferes with the impugned order passed by NCLT and put aside the same in furtherance of substantial cause of justice.

MS Mano Ranjani

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