Tribunal Upholds Adjudicating Authority Decision on Resolution Plans

The Tribunal upheld the Adjudicating Authority's decision, confirming compliance with NCLAT orders regarding resolution plans. The Appellant's failure to participate after the fresh RFRP issuance was noted, and subsequent events were deemed beyond the Appeal's scope. The Tribunal dismissed the Appeal, advising the Appellant to address concerns separately and leaving further actions to the Adjudicating Authority's discretion.

---

---

Issues Involved:
The judgment involves the issues of compliance with directions of the National Company Law Appellate Tribunal (NCLAT) regarding voting on resolution plans, issuance of fresh Request for Resolution Plan (RFRP), and approval of resolution plans during the Corporate Insolvency Resolution Process (CIRP).

Issue 1: Compliance with NCLAT Directions on Voting Process:
The Appeal was filed against the order dismissing I.A No. 602 of 2023, challenging the RFRP issued by the Resolution Professional (RP) and the Committee of Creditors (CoC). The background facts include the initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor 'Mittal Corp. Ltd.' and the subsequent submission of Resolution Plans by the Appellant and 'Shyam Sel and Power Limited' ('SSPL'). The CoC decided to put all plans for voting, leading to the challenge process and subsequent rejection of all plans, followed by the issuance of fresh RFRP on 10.02.2023.

Issue 2: Approval of Resolution Plans and Denial of Participation:
The Appellant contended that the CoC hurriedly approved a resolution plan favoring a specific Resolution Applicant, denying the Appellant's right to participate in the process. The Appellant argued that the CoC should not have proceeded with plan approval while the challenge to the RFRP was pending. The Resolution Professional filed an application seeking approval of 'SSPL's plan, and the Appellant raised concerns about the assignment of debt by Financial Creditors during the process.

Issue 3: Adjudicating Authority's Decision and Compliance with NCLAT Order:
The Adjudicating Authority's order dated 20.02.2023 was challenged in the Appeal, alleging non-compliance with the NCLAT order directing fresh voting on resolution plans. The Adjudicating Authority found that the actions of the RP and CoC were consistent with the NCLAT order, allowing the CoC to issue fresh RFRP when none of the plans were approved. The Appellant's failure to submit a plan after the fresh RFRP was issued was noted, and subsequent events post-10.02.2023 were deemed outside the scope of the present Appeal.

Conclusion:
The Tribunal upheld the Adjudicating Authority's decision, stating that the CoC's consideration of all resolution plans and issuance of fresh RFRP were in compliance with the NCLAT order. The Appellant's lack of participation after the fresh RFRP issuance was highlighted, and it was clarified that subsequent events were not part of the Appeal. The Appellant was advised to address concerns in a separate application, and the Appeal was dismissed, leaving further actions to the Adjudicating Authority's discretion.

---