N. Kumar Vs Religare Finvest Limited (NCLT Chennai)
NCLT Chennai held that once the resolution plan is approved by Committee of Creditors, only limited judicial review is available for the Adjudicating Authority u/s. 30(2) and Section 31 of IBC, 2016 and this Adjudicating Authority cannot venture into the commercial aspects of the decisions taken by the Committee of Creditors.
Facts- This Application has been filed u/s 30(6) and 31(1) of IBC, 2016 r/w Regulation 39 of CIRP Regulation 2016 and Rule 11 of NCLT Rules 2016 60(5) of IBC, 2016 by Resolution Professional of M/s. Sheltrex Developers Private Limited (Corporate Debtor) to approve resolution plan of BMC Brass LLP as approved by 96.66% of the COC of the Corporate Debtor.
Notably, the Corporate Debtor is a Private Limited Company incorporated on 24.03.2014 under the Companies Act having its registered office at Namma Veedu Project, Kaliyapuram Cross, Rottigoundanoor Road, Ettimadai Pirivu, Coimbatore Tamil Nadu – 641105. The Corporate Debtor was engaged in the business of construction and development of real estate projects.
Conclusion- Held that only limited judicial review is available for the Adjudicating Authority under Section 30(2) and Section 31 of IBC, 2016 and this Adjudicating Authority cannot venture into the commercial aspects of the decisions taken by the Committee of Creditors. Thus, the Resolution Plans are hereby approved and is binding on the Corporate Debtor and other stakeholders, shareholders and all creditors involved so that the revival of the Debtor Company shall come into force with immediate effect and the “Moratorium” under section 14 of IBC, 2016 shall cease to have any effect henceforth.
