New Delhi, Jan 19 (IANS): In a major judgement, the National Company Law Appellate Tribunal (NCLAT) has held that any resolution plan proposed by a bidder who had not participated in the corporate insolvency resolution process (CIRP) cannot be considered by the NCLT, even if the plan offers a better deal.
"We are of the view that when the application for approval of resolution plan is pending before the adjudicating authority, at that time the adjudicating authority cannot entertain an application of a person who has not participated in CIRP even when such person is ready to pay more amount in comparison to the successful resolution applicant," said the NCLAT order.
The ruling gains significance as there have been several instances in which the resolution process get delayed as revised and new offers cropped up after the timeline for submission of resolution plans was over.
The judgement was made in a plea by Kalinga Allied Industries India. Kalinga had submitted a resolution plan in time. After several rounds of deliberations by the Committee of Creditors (CoC), a revised resolution plan was submitted by the company on December 19, 2018. The same was approved by the COC by requisite majority in the 13th meeting on December 28, 2018.
Thereafter, the resolution professional filed an application for approval of plan in January 2019.
Further, in February 2020, Hindustan Coils Ltd filed an application seeking direction for consideration of its resolution plan which is 12 per cent more than the offer of Kalinga which was already approved.
The NCLT approved the consideration of the new bid, following which Kalinga approached the appellate tribunal.
The DHFL matter is the latest in this regard when after all the contenders submitted their plans, Adani Group came up with a revised offer, following which the other suitors Piramal and Oaktree cried foul.