No Part Of Resolution Plan Can Be Given On Application Of Operational Creditor Till Plan Is Approved By Adjudicating Authority: NCLAT
Mohd Malik Chauhan
26 Nov 2024 2:20 PM IST
The NCLAT New Delhi bench of Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that no part of the Resolution Plan can be given to the operational creditor till the Resolution Plan pending for approval before the Adjudicating Authority is approved. However, any objections to the approval of the plan can be raised before the Adjudicating Authority.
Brief Facts:
This appeal has been filed against the order dated 21.10.2024 on intervention petition no. 39 of 2024. The appellant represents the operational creditor who have filed their claim in the CIRP of the corporate debtor their admitted claim was Rs.3.4 crores.
The appellant's intervention application have been disposed of by Adjudicating Authority observing that at this stage Adjudicating Authority is not inclined to pass any direction in respect of the prayer (b) where the applicant has prayed that resolution professional be directed to provide applicant with the copy of resolution plan/ any other relevant documents pertaining to CIRP.
The appellant/Operational Creditor submitted that in the resolution plan only total of Rs.1 Lakh has been proposed to be paid to the operational creditor whereas their admitted dues was Rs.3.4 crores and that unless the appellant is provided the relevant extract of the resolution plan no detailed objection can be filed.
Per contra, the respondents submitted that it was always open for the appellant to file objections to the resolution plan which is pending before Adjudicating Authority for approval.
Observations:
The tribunal was not persuaded by the submission of the appellant and observed that till the resolution plan is approved by the Adjudicating Authority, no part of the plan can be given to the applicant on his application.
The tribunal further observed that since operational creditor is a part of the CIRP process therefore he has every right to file objections to the approval of the resolution plan pending before the Adjudicating Authority.
The tribunal directed the respondents to inform the appellant the next date of hearing wherein the appellant can very well file his objections.
Accordingly, the present appeal was dismissed.
Case Title: Pakhi Infra and Ors. v. Jabalpur MSW Pvt. Ltd.
Case Reference:Comp. App. (AT) (Ins) No. 2175 of 2024
Judgment Date: 22/11/2024
For Appellant : Mr. Harsh Parashar, Mr. N. Sai Vinod and Mr. Kanu Garg, Advocates. For Respondents : Mr. Abhijeet Sinha Sr. Counsel with Mr. Vinod Chaurasia, Mr. Auritro Mukherjee, Advocates
For Respondents: Mr. Krishnendu Datta Sr. Advocate with Mr. Prithu Garg, Mr. Parth Bhatia, Mr. Akhil Nene, Advocates for SRA. Mr. Abhijeet Sinha Sr. Advocate with Mr. Vinod Chaurasia, Mr. Sajjan Kumar Dokania, Advocates for RP/ R2.
