Case Law Details
Shrawan Kumar Agrawal Consortium Vs. Rituraj Steel Private Limited (NCLAT Delhi)
National Company Law Appellate Tribunal (NCLAT) recently decided an interesting question that whether the Adjudicating Authority (NCLT) has exceeded its jurisdiction in passing order for re-bidding, despite the approval of the Resolution Plan by Committee of Creditors (CoC), with a vote share of 84.70% of votes? in bunch of appeals in the matter of Shrawan Kumar Agrawal Consortium Vs. Rituraj Steel Private Limited in Company Appeal (AT) (INS) No. 1490 of 2019, 78 of 2020, and 184 of 2020 disposed by common order dated 05.03.2020.
In this article we will be discussing the aforesaid Question, as well as whether NCLT can intervene the commercial wisdom and decision of CoC. We will be discussing various judgments of NCLAT and Supreme Court of India which would be relevant for shedding some light on the aforesaid questions.
FACTS OF THE CASE :
That the Appellant in Company Appeal (AT) (Ins.) No. 1490 of 2019 is the successful resolution applicant, whose Resolution Plan has been approved by the Committee of Creditors with 84.70% of voting share. The Appellant contends that after the approval of the resolution plan by the CoC, the RP filed the same before the Adjudicating Authority for its approval under Section 31 of the Code. Thus, said application was challenged by the other two bidders (unsuccessful bidders) before Adjudicating Authority.
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