TaxTMI 
TaxTMI 
2026 (4) TMI 1597
X X X X Extracts X X X X
X X X X Extracts X X X X
....essful Resolution Applicant (SRA) which was approved by the Committee of Creditors (CoC) with 100% voting share. Further this order removes the resolution professional and also directs re-run of the Corporate Insolvency Resolution Process (CIRP), and mandates that the restarted CIRP be completed within a period of 120 days, failing which the Corporate Debtor shall stand deemed liquidated. The relevant portion of the Impugned Order is as follows: "27. It may be so that the plan value being less than liquidation value alone may not be a ground to reject the resolution plan. However, we cannot turn blind to the fact that the Resolution Plan value could only be 10% of the liquidation value of the CD. It hardly needs to be emphasized that in CIRP, the role of the CoC is that of a protagonist, who takes the key decisions in its commercial wisdom and also takes the consequences thereof. It cannot be gainsaid that the decisions of CoC must reflect the fact that it has taken into account the maximization of the value of the assets of the CD, and that the interest of all the stakeholders has been adequately balanced. The Hon'ble NCLAT could also view in Padmanabhan Venkatesh vs.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....atesh, 'Pioneer Engineering Industries v. Anjali Capfin Pvt. Ltd.' NCLAT, New Delhi and 'Kalpraj Dharamshi v. Kotak Investment Advisors Ltd., Civil Appeal Nos. 2943-2944 of 2020. 3. The Appellant- SRA claims that avoidance applications are independent statutory proceedings, which survive beyond the CIRP and do not affect the validity or approval of a resolution plan. The Appellant cannot be punished for the lapses of the RP in filing such applications. 4. The Appellant- SRA claims that the findings that the resolution plan is vitiated because the RP filed avoidance applications after approval of the resolution plan and that the sharing mechanism (50% by SRA and 50% by Creditors) for PUFE recoveries is impermissible. Such a legal position was clarified in the case of 'Ebix Singapore v. Committee of Creditors of Educomp Solutions Ltd. 5. We have heard both sides and also perused the material placed on record. 6. We find that an initial assessment was made by the RP that there is a case for avoidance transaction and for that reason transaction auditor needs to be appointed. This was discussed in the CoC meeting and a transaction auditor was also appointed. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lue of the CD is Rs. 11,25,34,343/-, liquidation value is Rs. 10,87,34,343/- and total realisable amount under the plan as also the amount admitted by the RP of Financial Creditors is Rs. 1,15,00,000/- only against the amount claimed i.e. Rs. 30,97,39,092/-, which is resulting into a huge reduction of haircut of 90%. 26. Under Section 25(2)(j) of the Code the RP is responsible to file applications for regarding avoidance of transaction, in terms of Chapter III of the Code. As per Regulation 35A (1) of the CIRP Regulations, on or before 75th day of CIRP, RP shall form an opinion whether the CD has subjected any transactions under Section 43, 45, 49, 50 & 66, and in terms of Regulation 35A (2) of the CIRP Regulations, on or before 115th day of CIRP, RP shall make a determination on such transactions and would also inform IBBI. Further as per Regulation 35A (3) of the CIRP Regulations, on or before 135th day of CIRP, RP shall make an application to AA for appropriate relief and order. Notably, as per Regulation 39(2) of the CIRP Regulations, the RP should submit all the resolution plans along with details of all transactions under Section 43, 45, 49, 50 and 66 of the Code obs....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... part of the security amount can be paid after approval of resolution plan, then non-serious bidders can come forward to submit the plans and after approval of the same, they may avoid the responsibility to implement it. Thus, the process of CIRP could not be conducted by the RP in a transparent and fair manner. The lapse can be looked at, clothed with a fact that the value of plan submitted by SRA is much less than that of liquidation value. Could the avoidance transactions be mentioned in the IM, the other bidders could possibly submit better plans." 10. From the plain reading of above findings, we do not find any infirmity in the conclusions of the Adjudicating Authority. 11. We also observe that the RP has brought on record the compliance report of the Impugned Order and informs us that it has published Form-G (Expression of Interest) on 05.12.2025 and has received one EoI wherein the last date of submission of the resolution plan was 18.02.2026. It has requested that a decision may be taken by the Appellate Authority on merits and in accordance with law. 12. In related Company Appeal (AT) (Insolvency) No. 3 of 2026, we find that the Erstwhile RP has sought to set asid....