Jayshree Agnihotri Vs Nirmal Kumar Jain (NCLAT Delhi)
NCLAT Dehi held that if the CoC arbitrarily rejects a just settlement offer, the Adjudicating Authority as well as the Appellate Authority can always set aside such a decision. Thus, order admitting section 7 application upheld.
Facts- The present appeals have been filed u/s. 61 of Insolvency and Bankruptcy Code 2016 challenging two orders dated 16.10.2024 passed by the Adjudicating Authority. By the impugned order dated 16.10.2024, the Adjudicating Authority has admitted the Section 7 application filed by Nirmal Kumar Jain and other allottees and ordered initiation of Corporate Insolvency Resolution Process of Pushp Ratna Realty Pvt. Ltd. The other impugned order, dated 16.10.2024 has been passed 2024 wherein the Adjudicating Authority has rejected the said I.A. wherein the Appellant-Jayshree Agnihotri had offered to make payments towards discharge of the debt obligations to Nirmal Kumar Jain and other allottees being Financial Creditor in class. Aggrieved by the two impugned orders, the present appeals are filed.
Conclusion- Held that we have noticed that the settlement proposal of the Appellant-Jayshree Agnihotri dated 19.11.2024 was placed before the CoC by the IRP in the second CoC meeting on 03.12.2024. This proposal was rejected by the home-buyers. The opposition of CoC to the settlement proposal is therefore resolute with no room for ambivalence or any ambiguity. We have no quarrel with the proposition of law laid down in Swiss Ribbons judgment that if the CoC arbitrarily rejects a just settlement, the Adjudicating Authority as well as the Appellate Authority can always set aside such a decision.
