Extended period of limitation unsustainable; allowable deductions for prompt payment discounts, pro rata recovery, freight and VAT led to demand being...
The principal issue was whether shareholders have standing to file appeals under Section 61 of the IBC and to seek remedies under Section 65 for alleged malicious proceedings. Relying on a Larger Bench precedent that shareholders possess only limited rights tied to equity investment and no independent statutory right to maintain appeals under Section 61, the Tribunal held shareholders cannot independently challenge approval of a resolution plan; consequently the appeals were dismissed as not maintainable. The Section 65 relief claimed by shareholders likewise failed for want of locus standi, and related interlocutory applications were closed. - NCLAT
The principal issue was whether shareholders have standing to file appeals under Section 61 of the IBC and to seek remedies under Section 65 for alleged malicious proceedings. Relying on a Larger Bench precedent that shareholders possess only limited rights tied to equity investment and no independent statutory right to maintain appeals under Section 61, the Tribunal held shareholders cannot independently challenge approval of a resolution plan; consequently the appeals were dismissed as not maintainable. The Section 65 relief claimed by shareholders likewise failed for want of locus standi, and related interlocutory applications were closed. - NCLAT
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