Ramesh Jadhav Vs Vakati Balasubramnayam Reddy & Anr. (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT) Delhi dismissed an appeal challenging the withdrawal of a liquidation application in the case of Ramesh Jadhav vs. Vakati Balasubramnayam Reddy & Anr. The appellant, a suspended director of the corporate debtor, had sought multiple reliefs, including the removal of the Resolution Professional (RP), cancellation of the Committee of Creditors’ (CoC) accepted resolution plan, and initiation of liquidation proceedings. The Adjudicating Authority, after reviewing the case, rejected the appellant’s claims, leading to the present appeal.
The appellant contended that the Adjudicating Authority had permitted the withdrawal of the liquidation application without a CoC resolution, making the decision invalid. However, NCLAT noted that the CoC had passed a resolution to extend the Corporate Insolvency Resolution Process (CIRP) period by 90 days and filed an application for the same, which was duly approved. The CoC had also voted in favor of issuing a revised Form G to invite fresh resolution applicants. Given this context, the tribunal ruled that the CoC’s decision justified the withdrawal of the liquidation application, and there was no procedural lapse. Concluding that the appellant’s arguments lacked merit, NCLAT upheld the Adjudicating Authority’s decision and dismissed the appeal.
