Jai Prakash Keswani Vs MB Malls Pvt. Ltd & Ors. (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT) Delhi has dismissed appeals challenging the approval of a resolution plan for MB Malls Pvt. Ltd. The appeals were filed by the promoter, Jai Prakash Keswani, and a homebuyer, Harvinder Singh. The key contention was that the resolution plan was unviable and conditional upon obtaining an occupancy certificate, making it non-implementable. However, NCLAT upheld the commercial wisdom of the Committee of Creditors (CoC), emphasizing that objections related to viability and feasibility fall within the CoC’s domain. The tribunal also ruled that a single homebuyer cannot contest an approved plan when it has been passed with a 100% voting share.
The promoter argued that the adjudicating authority failed to consider the objections raised in his earlier application. However, the NCLAT found that these objections had been duly addressed in the resolution plan. Citing the Supreme Court’s ruling in Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta (2020) 8 SCC 531, the tribunal reiterated that neither the adjudicating authority nor the appellate tribunal can interfere in the merits of a business decision taken by the CoC if it conforms with the Insolvency and Bankruptcy Code (IBC) and its regulations. The tribunal emphasized that the promoter’s concerns regarding the implementation timeline could only be tested once the stipulated period had elapsed.
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