Appeal Dismissed for Lack of Locus; Section 29A Challenge Reserved for Section 31 Stage, Heavy Costs Imposed

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....NCLAT dismissed the appeal filed by the appellant, holding that it lacked locus standi to challenge the resolution plan approved by the CoC and pending consideration before NCLT. The Tribunal held that CIRP, though a proceeding in rem, does not permit participation by entities whose procedural relevance has ceased, as in the case of the appellant which failed to submit a resolution plan within the prescribed time. The appellant, being neither a creditor nor a resolution applicant with a subsisting procedural status, could not assail the eligibility of the successful resolution applicant under Section 29A IBC. NCLAT left the issue of Section 29A disqualification to be examined by NCLT under Section 31 IBC and imposed costs of Rs. 15 lakhs on the appellant for obstructing the resolution process.....