Tribunal directs CoC to independently assess Resolution Plan under Section 29A

The Tribunal partially allowed the application, directing the Resolution Professional (RP) to present the Resolution Plan before the Committee of Creditors (CoC) for assessment of eligibility under Section 29A. The CoC was instructed to evaluate the Plan independently, considering the materials provided by the RP, to ensure a lawful decision-making process. The Tribunal refrained from commenting on the validity of the RP's rejection to maintain the CoC's impartial evaluation post-assessment, emphasizing the importance of CoC's role in evaluating Resolution Plans.

---

---

Issues:
1. Whether the Resolution Plan of the Applicant has to be placed before the CoC and whether it has been placed.
2. Whether the rejection of the Resolution Plan by the Resolution Professional (RP) is valid.
3. To what relief.

Analysis:

Issue 1:
The Applicant sought direction for the Resolution Professional (RP) to present the Resolution Plan before the Committee of Creditors (CoC) as it was allegedly not placed before them. The RP unilaterally disqualified the Applicant without CoC's scrutiny. The Respondent argued that the Applicant's disqualification under Section 29A due to association with an undischarged insolvent justified the rejection. However, the CoC did not independently assess the disqualification, as the RP declared the Applicant ineligible without CoC's involvement. The Tribunal referred to a NCLAT judgment emphasizing CoC's authority to evaluate Resolution Plans and consider eligibility under Section 29A before approval. Consequently, the Tribunal partially allowed the application, directing the RP to place the Resolution Plan before the CoC for assessment of eligibility.

Issue 2:
The Tribunal refrained from making observations on the validity of rejecting the Resolution Plan to avoid influencing the CoC's decision post-assessment. This decision was made to maintain the CoC's independent evaluation after the Plan is presented before them.

Issue 3:
The Tribunal partially allowed the application, instructing the RP to place the Resolution Plan before the CoC for evaluation of eligibility. The CoC was directed to consider the Plan along with the resources and material provided by the RP, ensuring a prompt and lawful decision-making process.

In conclusion, the Tribunal addressed the concerns raised by the Applicant regarding the placement of the Resolution Plan before the CoC and the unilateral disqualification by the RP. By upholding the importance of CoC's role in assessing eligibility under Section 29A, the Tribunal provided a directive for a fair evaluation process, emphasizing adherence to legal procedures and timely resolution.

---