Case Note & Summary
The case involves two appeals filed by Sagar Stone Industries, the Resolution Applicant, challenging an order dated 21.02.2025 passed by the Adjudicating Authority (NCLT) in I.A. No.4977/ND/2024 and I.A. No.5769/ND/2024. The Corporate Debtor was Jabalpur MSW Pvt. Ltd., undergoing Corporate Insolvency Resolution Process (CIRP). The Committee of Creditors (CoC) considered ten resolution plans, including that of the Appellant, and on 11.06.2024 approved the plan of the Successful Resolution Applicant (SRA) with 100% vote share. The Resolution Professional filed an application (I.A. No.36/2024) for approval of the plan, which was reserved for orders. The Appellant filed two applications: I.A. No.4977/ND/2024 seeking rejection of the approval of the Resolution Plan, and I.A. No.5769/ND/2024 seeking a direction to IBBI to initiate an enquiry against the Resolution Professional. Both were rejected by the impugned order. The Appellant contended that he was never informed about the rejection of his plan and that the CoC extended time for consideration without resorting to challenge process. The Resolution Professional submitted that the Appellant was communicated about the decision on 15.06.2024 and had even congratulated the SRA via email. The NCLAT found no merit in the appeals and dismissed them.
Headnote
A) Insolvency Law - Resolution Plan Approval - Communication of Rejection - The unsuccessful resolution applicant challenged the rejection of his plan and approval of another plan, alleging non-communication. The NCLAT held that the appellant was communicated about the decision on 15.06.2024 and had even congratulated the successful resolution applicant via email, thus no merit in the appeal. (Paras 2-4)
Issue of Consideration
Whether the Adjudicating Authority erred in rejecting the Appellant's applications seeking rejection of the approved resolution plan and direction for enquiry against the Resolution Professional.
Final Decision
Both appeals are dismissed. No order as to costs.
Law Points
- Resolution plan approval by CoC
- communication of rejection to unsuccessful resolution applicant
- scope of interference by appellate tribunal
