Case Law Details
Maharashtra Seamless Limited v. Padmanabhan Venkatesh & Ors (Supreme Court), Civil Appeal No. 4242 of 2019, Dated: 22/01/2020
Introduction:
It is, for the matter of reality, that there is no mandate under the I&B Code which provides that whether the Resolution Plan’s value shall be more than the liquidation value of the Corporate Debtor. It is this perplexing issue that the insolvency case of United Seamless Tubulaar Private Limited deals with. On 22nd January, the Full Bench of the Hon’ble Supreme Court of India in M/s. Maharashtra Seamless Limited v. Padmanabhan Venkatesh & Ors. categorically decided on the following issues:
Issue 1: Whether the scheme of the Code contemplates that the sum forming part of the resolution plan should match the liquidation value or not?
Issue 2: Whether Section 12-A is the applicable route through which a successful Resolution Applicant can retreat?
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