Business reorganisation requires recognition of successor's modified return; draft orders against dissolved transferor quashed and fresh review direct...
Pre-commencement R&D deduction denied where business had not commenced; deeming benefit requires tangible start of manufacture or commercial exploitat...
Section 31 review of a resolution plan is limited to statutory compliance and procedural fairness; the Adjudicating Authority cannot reappraise CoC commercial wisdom unless the record shows opacity, incomplete disclosure or abuse of CIRP. The Tribunal found the Information Memorandum and process defective because asset values fell, liabilities disappeared, and no proper audit or meaningful disclosure explained the changes or addressed possible avoidance issues. It also recognised an implied duty on a creditor involved in parallel CIRPs to disclose material facts affecting transparency, though non-disclosure is not automatically fatal. On these facts, the plan was rightly rejected and liquidation confirmed.
Section 31 review of a resolution plan is limited to statutory compliance and procedural fairness; the Adjudicating Authority cannot reappraise CoC commercial wisdom unless the record shows opacity, incomplete disclosure or abuse of CIRP. The Tribunal found the Information Memorandum and process defective because asset values fell, liabilities disappeared, and no proper audit or meaningful disclosure explained the changes or addressed possible avoidance issues. It also recognised an implied duty on a creditor involved in parallel CIRPs to disclose material facts affecting transparency, though non-disclosure is not automatically fatal. On these facts, the plan was rightly rejected and liquidation confirmed.
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