Tribunal Corrects Share Distribution Error in Resolution Plan Under Insolvency Code to Match Applicant's Proposal. The NCLT, Ahmedabad, allowed an application for rectification under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, concerning an error in ...
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.
Tribunal Corrects Share Distribution Error in Resolution Plan Under Insolvency Code to Match Applicant's Proposal.
The NCLT, Ahmedabad, allowed an application for rectification under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, concerning an error in the distribution of shares in a resolution plan approved on 5.10.2021. The Tribunal modified the order to align with the resolution applicant's proposal, ensuring accuracy in shareholding distribution.
Issues: Rectification of order under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016.
In the judgment delivered by the National Company Law Tribunal, Ahmedabad, the application was filed seeking rectification of an order dated 5.10.2021 under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016. The applicant, a member of the monitoring committee of the Corporate Debtor, highlighted an error in the distribution of shares in the resolution plan approved on 5.10.2021. The Tribunal noted that the error was substantial in nature and could not be rectified through speaking to minutes. The applicant contended that the distribution of shares in the approved resolution plan did not align with the proposal made by the resolution applicant. The Tribunal, after considering the submissions and documents on record, allowed the application for rectification. The clause in the order regarding the shareholding of the promoters and public shareholders was modified to align with the resolution plan proposed by the resolution applicant.
This judgment underscores the importance of ensuring accuracy in the distribution of shares in a resolution plan under the Insolvency and Bankruptcy Code. It highlights the process for seeking rectification of errors in such orders and emphasizes the need for alignment between the approved resolution plan and the proposals made by the resolution applicant. The Tribunal's decision to allow the rectification application demonstrates the commitment to upholding the integrity and accuracy of insolvency proceedings.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
