Whether on the death of the Resolution Applicant before approval of the Resolution Plan by the Adjudicating Authority, his liabilities and obligations will pass on to his legal heirs or not? – Prabhakar Kumar, RP Vs. Mr. Ashish Shashikant Katariya and Anr. – NCLT New Delhi Bench
January 2, 2025
The NCLT New Delhi Bench held that: (i) Mere the fact that the Applicant herein undertakes to step into the shoes of the original SRA, nowhere proves its capability to implement the Resolution Plan as submitted by the original SRA. (ii) The above provisions demonstrates that when a Resolution Plan is submitted by a Resolution Applicant, who is an individual, then all his liabilities and rights under the Resolution Plan is of that person individually. (iii) The SRA cannot be substituted.