Part of Resolution Plan Cannot Be Given on Application of Operational Creditor Till Approval of Plan: NCLAT [Read Order]
It was observed that till the resolution plan is approved by the Adjudicating Authority, no part of the plan can be given to the applicant on his application.
National Company Law Appellate Tribunal-NCLAT-Resolution Plan-Approval Process-TAXSCAN
National Company Law Appellate Tribunal-NCLAT-Resolution Plan-Approval Process-TAXSCAN
The New Delhi bench of National Company Law Appellate Tribunal ( NCLAT) has held that part of the Resolution Plan cannot be given to the operational creditor till the Resolution Plan pending for approval before the Adjudicating Authority is approved.
Pakhi Infra and Ors., the appellant challenged the order on intervention petition. The appellant represents the operational creditor who have filed their claim in the Corporate Insolvency Resolution Process (CIRP) of the corporate debtor their admitted claim was Rs.3.4 crores.
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The appellant's intervention application have been disposed of by Adjudicating Authority observing that at this stage Adjudicating Authority is not inclined to pass any direction in respect of the prayer (b) where the applicant has prayed that resolution professional be directed to provide applicant with the copy of resolution plan/ any other relevant documents pertaining to CIRP.
Counsel for the RP as well as the Counsel for the SRA opposed the prayers made by the appellant and submitted that it was always open for the appellant to file objections to the resolution plan which is pending before Adjudicating Authority for approval. Once intervention application was withdrawn and thereafter other invention application was filed.
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The bench of Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) observed that till the resolution plan is approved by the Adjudicating Authority, no part of the plan can be given to the applicant on his application.
It was held that since operational creditor is a part of the CIRP process therefore he has every right to file objections to the approval of the resolution plan pending before the Adjudicating Authority. While dismissing the appeal, the tribunal directed the respondents to inform the appellant the next date of hearing wherein the appellant can very well file his objections.
To Read the full text of the Order CLICK HERE
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