The Chennai Bench of National Company Law Appellate Tribunal(NCLAT) allowed the applicant’s appeal against the National Company Law Tribunal(NCLT)’s September 13, 2024 order, which had rejected the Interlocutory Application seeking to declare the process memorandum for the Resolution Plan incomplete.
K.M. Mudappa,appellant-applicant,had challenged the NCLT’s order in CP(IB) No.167/BB/2018, specifically the rejection of their Interlocutory Application (IA No.253/2021).The appellant had filed the application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking a declaration that the process memorandum requesting the submission of the Resolution Plan was incomplete, as it failed to account for all stakeholders, including landowners.
The NCLT dismissed the application, citing prior orders in IA No.569/2022 and IA No.570/2022 as the grounds for rejection. However, the applicant contended that the NCLT’s decision lacked specific reasoning and amounted to an arbitrary dismissal. The application was rejected without a detailed explanation, leaving the applicant aggrieved and seeking relief from the NCLAT.
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The matter involved the consideration of IA No.569/2022, in which the Resolution Professional had sought condonation of a 352-day delay in filing an application for the sanction of the Resolution Plan under Section 30(6) of the IBC.
The delay was attributed to reasons such as coordination issues with counsel, the impact of COVID-19, and technical difficulties with the NCLT’s e-portal. The NCLT had denied condonation, stating that the applicant had failed to provide sufficient reasons for each day of delay. This decision was appealed and reviewed by the NCLAT.
The NCLAT had previously remitted the matter back to the NCLT for reconsideration, after allowing appeals in CA (AT) (CH) (Ins) No.378/2024. The delay in the filing of the application was ultimately condoned, and the matter was sent back for proper evaluation in accordance with the law.
The two member bench comprising Justice Sharad Kumar Sharma(Judicial Member) and Jatindranath Swain(Technical Member) allowed the applicant’s appeal and directed that the NCLT’s September 13, 2024 order be reconsidered in light of the earlier judgment from November 13, 2024.
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