Adjudicating Authority Cannot Direct Committee Of Creditors To Consider Expression Of Interest Submitted After Due Date: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when the Committee of Creditors (CoC) has decided not to accept Expressions of Interest (EoI) submitted after the due date, the Adjudicating Authority cannot direct fresh consideration of such EoI by the CoC. Brief Facts: The last date for submitting EoI was 24 July 2023. The Appellant mistook it to be 26 July, 2023 on which date the EoI was submitted. The submission of the EoI was rejected by the Resolution Professional on the ground that it was submitted after due date.The Applicant thereafter filed the Interlocutory Application (IA) seeking a direction. There was earlier decision of the Adjudicating Authority in IA along with two other IAs which on appeal was set aside and matter was remitted to the Adjudicating Authority for fresh decision. Now by the impugned order, the Adjudicating Authority has rejected the IA filed by the Appellant. Adjudicating Authority has noticed in the impugned order that the CoC in its 16th meeting held on 01.04.2024 decided not to accept the belated EoIs and resolve for liquidation. Contentions: The Appellant submitted that the object of the Insolvency and Bankruptcy Code, 2016 (Code) is to revive the Corporate Debtor and Appellant being in the same business is fully entitled to revive the Corporate Debtor. At the time when decision was taken to liquidate the corporate debtor, there were no plans before the Adjudicating Authority. Per contra, the Respondent submitted that the CoC has already taken a decision not to accept the belated EoIs and after the expiry of the date for accepting the EoI, no EoI could have been considered by the Resolution Professional as per Regulation 36A of Liquidation Regulations 2016. Observations: The Tribunal observed that the CoC has taken a decision not to accept the belated EoI and has also resolved to file liquidation application being IA No.21 of 2024 for the sale of the corporate debtor or business of the corporate debtor as a going concern. Based on the above, it observed that CoC having already taken a decision not to accept belated EoI and has taken a decision for liquidation, no error has been committed by the Adjudicating Authority rejecting the application filed by the Appellant. Accordingly, the present appeal was dismissed. Case Title: PTC Engineering India Pvt. Ltd. Vs. Naresh Kumar Munjal, RP of Nipman Fasteners Industries Pvt. Ltd. Case Number:Company Appeal (AT) (Insolvency) No. 444 of 2025 Judgment Date: 18/03/2025 For Appellant: Mr. Rishi Kapoor, Mr. Shashank Agarwal, Mr. Abhishek Taneja, Mr. Surya Singh Sirohi, Advocates. For Respondent: Ms. Honey Satpal, Mr. Kanishk Khullar, Advocates. Click Here To Read/Download The Order

Adjudicating Authority Cannot Direct Committee Of Creditors To Consider Expression Of Interest Submitted After Due Date: NCLAT

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Adjudicating Authority Cannot Direct Committee Of Creditors To Consider Expression Of Interest Submitted After Due Date: NCLAT

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