Excel Commosale Private Limited Vs Kurrapati Singarayya Chowdary (NCLAT Chennai)
In the case of Excel Commosale Private Limited vs. Kurrapati Singarayya Chowdary, the National Company Law Appellate Tribunal (NCLAT) dealt with an appeal challenging an order dated April 3, 2024, which rejected a resolution plan approved by the Committee of Creditors (CoC) with 100% voting. The adjudicating authority directed fresh Corporate Insolvency Resolution Process (CIRP) proceedings, inviting a new resolution plan. Subsequently, a second resolution plan was approved, rendering the appeal by the appellants, who were members of the CoC, effectively infructuous.
The appellants expressed concern over certain observations made in Paragraph 35 of the impugned judgment, which they feared might influence future proceedings. However, the NCLAT clarified that these observations were confined to the specific impugned judgment and would not affect the evaluation of the second resolution plan. Considering the fact that the second resolution plan had already been approved without challenge, the tribunal concluded that continuing the appeal served no practical purpose. As a result, the appeal was dismissed as infructuous, with liberty granted to the appellants to challenge the approval of the second resolution plan if deemed necessary.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
The Appellants were the member of the Committee of Creditors who puts a challenge to the Impugned Judgment of 03.04.2024 as it was passed on IA (IBC) No. 329 / 2023 in CP (IB) No. 78 / 7 / AMR / 2020.
