Rejection of Resolution Plan Without Hearing Violates Natural Justice

Essar (India) Ltd Vs Prabhat Technologies (India) Ltd (NCLAT Delhi)

NCLAT Delhi held that rejection of approved resolution plan on account of alleged fraud without giving an opportunity to resolution applicant to explain its position is against the principle of natural justice. Accordingly, matter remanded back.

Facts- The Committee of Creditors had approved the subject resolution plan dated 23.10.2020 in the 9^th CoC Meeting with an overwhelming majority of 98.15%. on 07.11.2020. However, vide the Impugned Order dated 09.01.2024 passed by

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