RMOL Engineering And Offshore Limited Vs Avocado Reality Private Limited (NCLT Mumbai)
NCLT Mumbai held that resolution plan for Corporate Debtor as submitted by M/s. West End Investment and Finance Consultancy P. Ltd. is approved u/s. 31(1) of IBC since the same is duly approved by CoC and meets the requirements of IBC and the IBBI Regulations.
Facts- This application is filed by the Resolution Professional of M/s. Avocado Reality Private Limited under section 30(6) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 seeking to approve the Resolution Plan as submitted by West End Investment & Finance Consultancy Private Limited and approved by the Committee of Creditors through e-voting post the Tenth CoC Meeting dated 06.01.2025.
Conclusion- In Committee of Creditors of Essar Steel India Limited through Authorised Signatory Vs. Satish Kumar Gupta & Ors, the Hon’ble Apex Court clearly laid down that the Adjudicating Authority would not have power to modify the Resolution Plan which the CoC in their commercial wisdom has approved.
Held that the commercial wisdom of the COC is to be given paramount importance for approval / rejection of the resolution plan. As the Resolution Plan meets the requirements of the I & B Code and the IBBI Regulations, the same needs to be approved. Thus, the Resolution Plan for the Corporate Debtor submitted by M/s. West End Investment and Finance Consultancy Private Limited, is approved under Section 31(1) of the Code.
