TaxTMI 
TaxTMI 
The Supreme Court's In-Depth Ruling on Corporate Insolvency: Legal Implications Explored
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....ncerned a hotel company undergoing financial distress, which led to the initiation of the CIRP following a loan default. The resolution plan proposed by Mr. M.K. Rajagopalan was eventually approved by the Committee of Creditors (CoC) with an 87.39% majority. However, this approval and the CIRP process itself faced significant challenges and objections, leading to a detailed scrutiny by the NCLAT and subsequently, the Supreme Court. NCLAT's Reversal and Key Issues The NCLAT set aside the NCLT's approval of the resolution plan, citing procedural irregularities and questioning the resolution applicant's eligibility. The matter was remanded back to the CoC for a fresh process, including reconsideration of a settlement proposal by ....
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.... related and unrelated creditors. This analysis had broader implications for the treatment of related parties in insolvency proceedings. 5. Section 12-A Application The Court examined the promoter's application under Section 12-A for withdrawal of the CIRP, particularly considering the timing and substance of this application. 6. Impact of COVID-19 Pandemic The pandemic's influence on procedural timelines and regulations was also a significant point of consideration, recognizing the unique challenges posed by the pandemic. The Supreme Court of India in its judgment addressed several critical points related to the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). Here is an elaborat....
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....Balaji Vidyapeeth," could not submit an individual resolution plan without contravening Section 88 of the Trusts Act. The Court observed that the applicant's involvement in both capacities created a situation where he could not be detached from the disqualified entity​​. Point C3 - Effect of Section 166(4) Companies Act The Court agreed that the resolution applicant's involvement as Managing Director of MGM Healthcare Private Limited and his intentions to convert the corporate debtor's property into a hospital created a conflict of interest under Section 166(4) of the Companies Act, rendering him ineligible as a resolution applicant​​. Point D1 - Revision of resolution plan after approval by CoC The Cour....