The New Delhi Bench of the National Company Law Appellate Tribunal ( NCLAT ) rules that no adverse effect on validity of the resolution plan ( RP ) on non-grant of reliefs and concessions by the National Company Law Tribunal ( NCLT ).
The ppeals have been filed against the same order dated 07.03.2023 passed by the Adjudicating Authority ( National Company Law Tribunal ), New Delhi, Special Bench approving the Resolution Plan submitted by Consortium of M/s. Suraksha Realty Limited and M/s. Lakshdeep Investment and Finance Private Limited ( ‘Suraksha Realty’ ) in Corporate Insolvency Resolution Process of Jaypee Infratech Limited.
Krishnan Venugopal, Senior Counsel for the Appellants submitted that the Appellants have sufficient locus standi to raise objection to the Resolution Plan. Appellants’ objections were heard by Adjudicating Authority on merits. Appellants’ arguments were also heard and considered in the earlier round of litigation even before the Supreme Court in Jaypee Kensington. Locus of Appellants was challenged by the Resolution Professional in the Jaypee Kensington Boulevard Apartment Welfare Association but the said arguments was repelled.
It was submitted that the Appellants have raised objection regarding future dues of Income Tax Department and that the revenue subsidy on account of the land for development given by YEIDA to JIL could not be written off in the Resolution Plan as these were future liabilities in respect of which no demand had yet been raised.
The NCLAT deemed the Appellant’s objection claiming that NCLT Delhi had exceeded its jurisdiction in granting various reliefs and concessions through directives without merit. The only intention of issuing the directions was to implement the Resolution Plan and is not violative of any statutory provisions. The inclusion of the phrase “as applicable under the prevailing laws” indicated that the SRA sought compliance with the law and not relief or concessions in contravention of any applicable regulations.
A Two-Member Bench comprising Justice Ashok Bhushan, Chairperson and Barun Mitra, Member ( Technical ) observed that “We, thus, do not find any infirmity in the reliefs and concessions granted by the Adjudicating Authority. The fact that certain reliefs and concessions have not been granted could have not adverse effect on validity of the Resolution Plan or it can be said that any illegality has been crept in the Resolution Plan on the above ground.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
