Resolution Plan Rejection on Valuation Grounds Unjustified Without Stakeholder Objection

By POONAM GANDHI Corporate Law Judiciary June 13, 2025

TaxGuru Citation: 2025 taxguru.in 4120
Case Name: Vashishth Builders And Engineers Limited Vs Trishul Dream Homes Limited (NCLAT Delhi)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: Delhi NCLAT, NCLAT

Already Upgraded? Log in.

Vashishth Builders And Engineers Limited Vs Trishul Dream Homes Limited (NCLAT Delhi)

NCLAT Delhi held that rejection of resolution plan on the ground of valuation of assets of Corporate Debtor not sustainable since no objection to the valuation conducted of the Corporate Debtor was raised by any stakeholders.

Facts- The Corporate Insolvency Resolution Profess (CIRP) of the Corporate Debtor – Trishul Dream Homes Ltd. commenced vide order dated 16.06.2023. IRP was replaced on 05.08.2023 by Respondent No.1. Resolution Plans were received, which were examined and few Resolution Applicants were found ineligible. In 7^th CoC meeting held on 20.12.2023, the Resolution Professional informed the CoC that plan submitted by Vashisth & Vashisth which was discussed.

Notably, the Resolution Plan submitted by Vashisth & Vashisth was approved by the CoC members with 91.55% voting share on 28.02.2024. The Resolution Professional filed an application for approval of the Resolution Plan. Vide order dated 23.04.2023, the Adjudicating Authority dismissed the application seeking approval of the plan, aggrieved by which order these appeals have been filed.

Conclusion- Held that when no objection to the valuation conducted of the Corporate Debtor was raised by any stakeholders, it was not open for the Adjudicating Authority to enter into the issue of valuation of assets of the Corporate Debtor and to make the said ground for rejecting the Resolution Plan.