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Appeal Dismissed: NCLT Upholds Resolution Plan Approval; Appellants Can Pursue Legal Remedies The appeal against the approval of the Resolution Plan by NCLT Mumbai Bench was dismissed. The Tribunal found no grounds to interfere with the order ...
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Appeal Dismissed: NCLT Upholds Resolution Plan Approval; Appellants Can Pursue Legal Remedies
The appeal against the approval of the Resolution Plan by NCLT Mumbai Bench was dismissed. The Tribunal found no grounds to interfere with the order approving the Resolution Plan submitted by Respondent No.4, which had undergone various stages of approval. The appellants' concerns regarding equity share infusion and purchase consideration were considered but did not warrant overturning the approval. The Tribunal concluded that the appellants could pursue legal remedies for their specific issues with Respondent No.4, ultimately leading to the dismissal of the appeal.
Issues: Challenge to approval of Resolution Plan by NCLT Mumbai Bench.
Analysis: The appeal was filed against the order dated 02.02.2021 by the National Company Law Tribunal, Mumbai Bench, approving the Resolution Plan as directed by previous orders. The appellants, who are promoters of a company, challenged the Resolution Plan approved by the NCLT. The Resolution Plan submitted by Respondent No.4 was approved by the Board of Directors and subsequently by Justice D.K Jain. The Tribunal also approved the Resolution Plan. The Respondent confirmed the implementation of the plan post the order date.
The appellants contended that the Respondent was requesting additional equity share infusion, reducing the value of the appellants' shares. The Tribunal reviewed the submissions and the record, considering the steps taken in line with the Resolution Framework approved in previous appeals. The Resolution Plan underwent various stages as per the Framework, including approval by the Board of Directors and Justice D.K Jain. The Tribunal acknowledged the steps taken and the approval process.
The approval by Justice D.K Jain was followed by an application before the Adjudicating Authority, which approved the Resolution Plan. The appellants raised concerns about the purchase consideration, which had been approved at earlier stages. The Tribunal, in its limited judicial review, found no reason to interfere with the order of approval. The Tribunal concluded that there were no grounds to challenge the impugned order. However, it noted that the appellants could pursue legal remedies for any inter se issues with Respondent No.4. Consequently, the appeal was dismissed based on the above observations.
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