Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
CoC cannot consider resolution plans from applicants not listed in PRAs under Regulation 39(1)(b) CIRP 2016 The NCLAT held that the Committee of Creditors (CoC) cannot consider resolution plans from applicants not listed in the Prospective Resolution Applicants ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
CoC cannot consider resolution plans from applicants not listed in PRAs under Regulation 39(1)(b) CIRP 2016
The NCLAT held that the Committee of Creditors (CoC) cannot consider resolution plans from applicants not listed in the Prospective Resolution Applicants (PRAs) list per Regulation 39(1)(b) of CIRP Regulations, 2016. Three applicants, including Patanjali, had not submitted Expression of Interest (EOI) applications and were not on the PRAs list. While Regulation 36A permits CoC to modify EOI invitations, no fresh Form G was issued to allow new participants. The CoC resolved to confine consideration only to applicants on the final PRAs list dated 07.11.2023, excluding additional new entrants. The NCLAT allowed both appeals, setting aside the impugned orders dated 12.02.2024 and 21.02.2024.
Issues Involved: The judgment involves challenges to orders passed by the Adjudicating Authority in two separate Interlocutory Applications (I.A.) related to the consideration of Resolution Plans by the Committee of Creditors (CoC) in the context of insolvency proceedings.
Company Appeal (AT) (Ins.) No.459 of 2024: The Adjudicating Authority directed the CoC to consider the Resolution Plan of the Applicant subject to allowing all Resolution Applicants to revise their bids. The Resolution Professional was directed to seek an extension of time. The Appellant contested this decision, arguing that certain applicants were not included in the list of Prospective Resolution Applicants (PRAs) and thus should not be considered.
Company Appeal (AT) (Ins.) No.464 of 2024: The Adjudicating Authority directed the Resolution Professional to present the Resolution Plans of specific applicants to the CoC for consideration, with a deadline set for further submissions. The Appellant challenged this decision, asserting that applicants not listed as PRAs should not be considered under Regulation 39(1)(b) of the CIRP Regulations, 2016.
Judgment Details: The Tribunal heard arguments from the parties and examined relevant regulations governing the consideration of Resolution Plans. Regulation 39(1)(b) prohibits the CoC from considering plans from applicants not listed as PRAs. The CoC, through a resolution, decided to only negotiate with existing Resolution Applicants listed as PRAs, disregarding new entrants. The Tribunal upheld the CoC's decision, concluding that the impugned orders directing consideration of additional Resolution Plans were unsustainable. Consequently, both Appeals were allowed, and the orders dated 12.02.2024 and 21.02.2024 were set aside.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
of 
TaxTMI 
