New Resolution Applicants not entitled to Participate in CIRP and Submit Resolution Plan to NCLT without Issuance of Fresh Form G: NCLAT [Read Order]
New resolution applicants not entitled to participate in CIRP and submit Resolution Plan to NCLT without issuance of Fresh Form G, rules NCAT
CIRP – NCLAT – NCLT – Fresh Form G – Insolvency proceedings – NCLT Resolution Plan submission – taxscan
CIRP – NCLAT – NCLT – Fresh Form G – Insolvency proceedings – NCLT Resolution Plan submission – taxscan
The New Delhi Bench of the National Company Law Appellate Tribunal held that new resolution applicants not entitled to participate in Corporate Insolvency Resolution Process ( CIRP ) and submit Resolution Plan to the National Company Law Tribunal ( NCLT ) without the issuance of Fresh Form G.
The Appellant’s case is that it underwent 33 rounds of bidding and was declared H1 and it was thereafter IA was filed by Patanjali Ayurveda Ltd. and other two applicants namely B-Right Realestate Ltd. and MGN Agro Properties Private Limited, on whose application direction has been issued to place their Resolution Plan before CoC for consideration.
It was submitted that neither Patanjali nor the other two applicants who subsequently filed applications were included in the list of Prospective Resolution Applicants ( PRAs ), hence, there was no occasion to issue direction to the CoC to consider their application or Resolution Plan and that as per Regulation 39(1)(b) of the CIRP Regulation, the Applicant whose name is not included in the list of PRAs cannot be considered.
Regulation 36A which provide for Invitation for Expression of Interest also empowers the CoC to modify the invitation for Expression of Interest. It is always open for the CoC to take a decision to not proceed on the Applications, EOI received and take a decision for issuance of fresh Form G and permit other applicants to participate. When no fresh Form G has been issued, it is not open for any new applicant to submit application before the Adjudicating Authority for being permitted to participate in the CIRP and submit Resolution Plan.
A Three Member Bech comprising Justice Ashok Bhushan, Chairperson, Barun Mitra, Member (Technical) and Arun Baroka, Member (Technical) observed that “The Regulation thus clearly provides that the committee shall not consider a resolution plan received from an application whose name does not appear in the list of PRAs. Admittedly, neither Patanjali nor other two applications have submitted any EOI nor their name was reflected in the List of PRAs.”
“In any view of the matter, affidavit has been filed by the CoC where resolution has been brought on record that the CoC has now decided not to consider any additional new entrants and they will confine their consideration to Resolution Applicants whose names were reflected in the final list of Prospective Resolution Applicants dated 07.11.2023” the Tribunal noted.
To Read the full text of the Order CLICK HERE
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