Greater Noida Industrial Development Authority Vs Prabhjit Singh Soni & Anr. (Supreme Court of India)
The recent judgment by the Supreme Court of India in the case of Greater Noida Industrial Development Authority vs. Prabhjit Singh Soni & Anr. marks a significant development in the jurisprudence surrounding the Insolvency and Bankruptcy Code (IBC), 2016. This landmark ruling addresses the contours of the National Company Law Tribunal’s (NCLT) authority, particularly its inherent powers to recall an approval order under the ambit of the IBC. Through this case, the Supreme Court has elucidated the procedural and substantive safeguards that must be adhered to in the corporate insolvency resolution process (CIRP), thereby reinforcing the legislative intent of the IBC to ensure fair and equitable treatment to all stakeholders involved.
Background of the Case
The crux of the dispute revolved around the approval of a resolution plan by the NCLT under the provisions of the IBC. The Greater Noida Industrial Development Authority (the appellant) challenged the NCLT’s decision, raising pivotal questions about the recall of an order of approval passed under Section 31 of the IBC, the timeliness of the application for recall, and the compliance of the resolution plan with the requirements laid down under Section 30(2) of the IBC, read in conjunction with Regulations 37 and 38 of the CIRP Regulations, 2016.
