Alchemist Asset Reconstruction Company Ltd Vs ASC Insolvency Services LLP & Ors (NCLAT Delhi)
NCLAT Delhi held that since the value of corporate debtor was covered by exemption issued by MCA by notification dated 07.03.2024 hence provision of section 5 of Competition Act, 2002 is not applicable, accordingly, there was no requirement of any approval from Competition Commission of India [CCI] for approval of resolution plan.
Facts- This Appeal by a Dissenting Financial Creditor has been filed challenging the order dated 22.01.2025 passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi allowing the application approving the Resolution Plan submitted by Respondent No.2- ‘OCL Iron and Steel Limited’ (Successful Resolution Applicant) as well as rejecting the application filed by the Respondent No.5- ‘Gateway Investment Management Services Limited’ (Unsuccessful Resolution Applicant).
Conclusion- Held that as per the balance sheets of the Corporate Debtor who is being acquired under the Resolution Plan, the value of the Corporate Debtor is Rs.70.76 Crore and the turnover is Rs.13.72 Crores. The value of the Corporate Debtor as above is clearly covered by exemption provided in Notification dated 07.03.2024 as extracted above. We thus, are of the view that Section 5 of the Competition Act, 2002 is not applicable in the facts of the present case and there was no requirement of any prior approval from CCI. Hence, the submission advanced by the Appellant cannot be accepted.
