The NCLAT New Delhi Bench has held that a resolution applicant whose resolution plan, including a revised plan, has been rejected by the CoC, is eligible to submit a fresh resolution plan in response to a newly issued invitation for expression of interest (Form G).
The corporate debtor entered into CIRP, and the Interim Resolution Professional (IRP) invited Expressions of Interest (EOI). The appellant, Adroit Pharmaceuticals Pvt. Ltd., submitted its resolution plan, which was initially approved by the Committee of Creditors (CoC). Subsequently, the Adjudicating Authority (AA) directed the CoC to reconsider the plan after fresh valuation of the corporate debtor's intangible assets. Despite a revised offer of an additional ₹125 lakhs from the appellant, the CoC rejected the plan, and the AA dismissed the pending application for plan approval. The appellant's subsequent request to submit a revised resolution plan in a newly issued Form G was denied by the AA.
The appellant argued that fresh valuation of intangible assets after the CoC's approval was a procedural irregularity. It also contended that under Section 30(2) of IBC, the AA exceeded its jurisdiction by directing reconsideration and reissuance of Form G and claimed that substantial revisions to the financial proposal were overlooked by the CoC. The respondents countered that the appellant participated in the proceedings involving the unsecured financial creditor and was aware of the directions issued. It was also noted that the appellant failed to file a resolution plan in response to the fresh Form G and had the opportunity to participate in the new resolution process.
The tribunal observed that the order dated 11.03.2024, dismissing the earlier resolution plan and directing the issuance of fresh Form G, was not challenged by the appellant or other stakeholders and had become final. It also noted that the appellant retains the right to participate in the fresh resolution process initiated by the new Form G, thereby addressing the appellant's grievance. The tribunal concluded that there was no illegality in the AA’s decision to dismiss the appellant’s application while permitting participation in the fresh process.
The NCLAT affirmed the AA's decision, emphasizing the CoC's discretion in evaluating resolution plans and upheld the rejection of the appellant's application to reconsider its earlier plan.
Adroit Pharmaceuticals Pvt. Ltd. Through Its Director Sanjay Kukreja Vs. Amit Poddar Resolution Professional & Ors.
Company Appeal (AT) (Insolvency) No. 1274 of 2024
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