Adjudicating Authority not empowered to modify conditions in resolution plan

Mathuraprasad C Pandey Vs Partiv Parikh (NCLAT Delhi)

NCLAT Delhi held that as per provisions of section 31 of Insolvency & Bankruptcy Code, 2016, Adjudicating Authority is empowered to either accept or reject the resolution plan. Adjudicating Authority is not empowered to modify/ alter the conditions in the resolution plan.

Facts-

The appellant, Nandish Patel, in the capacity of operational creditor filed the application u/s. 9 of the IBC Code which was admitted in the month of August, 2019 and Interim Resolution Professional namely Mr. Parthiv Parikh (IRP) was appointed as IRP. The present Respondent No.1, Mr. Parthiv Parikh was appointed as Resolution Professional by the Adjudicating Authority on 01.2020.

The plan submitted by the appellant M/s Mathura Prasad was approved by 97.79% of CoC. Whereas about 99% voting was made against liquidation of the Corporate Debtor.

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