Charudutt Marathe Vs Geetanjali Sugar Private Limited (NCLT Mumbai)
NCLT Mumbai held that resolution plan of Lokshakti Sugar & Allied Industries Ltd. [Corporate Debtor] as submitted by Geetanjali Sugar Private Limited meeting requirements of section 30(2) of the IBC stands approved.
Facts- The instant application was filed on 25.09.2024 by Mr. Charudutt Marathe, the Resolution Professional (RP) of Lokshakti Sugar & Allied Industries Ltd (Corporate Debtor), under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (Code) seeking approval of the Resolution Plan submitted by ‘Geetanjali Sugar Private Limited’ in consortium with ‘M/s. G V Alurkar’ (Successful Resolution Applicant / SRA) and approved by 100% of the voting share of the members of the Committee of Creditors (CoC) of the Corporate Debtor.
Conclusion- In K. Sashidhar v. Indian Overseas Bank and Ors. [2019] ibclaw.in 08 SC], the Hon’ble Supreme Court held that if the CoC had approved the resolution plan by the requisite percent of voting share, then as per section 30(6) of the Code, it is imperative for the Resolution Professional to submit the same to the Adjudicating Authority. On receipt of such a proposal, the Adjudicating Authority is required to satisfy itself that the resolution plan, as approved by the CoC, meets the requirements specified in Section 30(2). The Hon’ble Apex Court further observed that the role of the NCLT is ‘no more and no less’. The Hon’ble Supreme further held that the discretion of the Adjudicating Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan ‘as approved’ by the requisite percent of voting share of financial creditors. Even in that enquiry the grounds on which the Adjudicating Authority can reject the Resolution Plan is in reference to matters specified in Section 30(2) when the Resolution Plan does not conform to the stated requirements. The legislature, consciously, has not provided any ground to challenge the commercial wisdom of the individual financial creditors or their collective decision before the Adjudicating Authority.
