Goldendreams Buildcon Private Limited Vs Snehal Arvind Kamdar (NCLAT Delhi)
The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 against the order of the NCLT Mumbai Bench, which had dismissed an application challenging the rejection of a resolution plan by the Committee of Creditors (CoC). The corporate debtor had entered the Corporate Insolvency Resolution Process (CIRP) on 25.07.2023, and four prospective resolution applicants, including the appellant, submitted resolution plans. The appellant revised its plan multiple times at the request of the Resolution Professional (RP) and CoC.
The CoC ultimately rejected all resolution plans during its 14th meeting, and this decision was communicated to the appellant. The appellant challenged the rejection, alleging that the CoC failed to follow the procedure under the IBC, CIRP Regulations, and the Request for Resolution Plan (RFRP). It was contended that the evaluation process, challenge mechanism, and participatory rights were not properly followed, and that the rejection was communicated without reasons or proper disclosure of voting results and deliberations.
The respondents argued that all procedural requirements were duly followed, and that the appellant had actively participated in the process, including multiple rounds of negotiations and revisions. It was submitted that all resolution plans were considered but found financially non-viable as they offered values below the liquidation value. The CoC, in exercise of its commercial wisdom, rejected all plans and decided to annul the process. It was further argued that the RFRP explicitly empowered the CoC to reject any or all plans or annul the process at any stage without assigning reasons.
