Case Law Details
Ashdan Properties Pvt. Ltd. Vs Mamta Binani (RP of Rolta India Ltd.) & Ors. (NCLAT New Delhi)
Introduction: In a recent ruling by the National Company Law Appellate Tribunal (NCLAT) in the case of Ashdan Properties Pvt. Ltd. Vs Mamta Binani (RP of Rolta India Ltd.) & Ors., significant implications were drawn regarding the eligibility of new resolution applicants to participate in the Corporate Insolvency Resolution Process (CIRP) without the issuance of a fresh Form G. This article delves into the details of the case, the tribunal’s judgment, and its implications on the insolvency resolution landscape.
Detailed Analysis: The appeals filed by Ashdan Properties Pvt. Ltd. challenged orders passed by the Adjudicating Authority in relation to two interlocutory applications. The first order, dated 12.02.2024, directed the Committee of Creditors (CoC) to consider the resolution plan of the applicant, subject to allowing all resolution applicants to revise their bids. The second order, dated 21.02.2024, directed the Resolution Professional to place the plans of certain applicants before the CoC for consideration.
The crux of the matter lies in Regulation 39(1)(b) of the CIRP Regulations, which stipulates that the CoC shall not consider any resolution plan from applicants not appearing in the final list of Prospective Resolution Applicants (PRAs). The appellant argued that since the new applicants were not included in the list of PRAs, their plans should not be considered.
The CoC, through an affidavit, affirmed its decision to only consider applications from the existing resolution applicants listed in the final PRA list dated 07.11.2023. This decision was ratified in a subsequent CoC meeting, wherein it was resolved to not entertain any additional new entrants.
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