IBC Cases Weekly Round-Up: 23 January TO 29 JANUARY 2023

NCLATNo Condonation Beyond 45 Days, IBC Overrides Limitation Act : NCLAT ChennaiCase Title: M/s. Platinum Rent A Car (India) Pvt. Ltd. v M/s. Quest Offices Limited Case No.: Comp App (AT) (CH) (Ins) No.448/2022 The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, comprising of Justice M. Venugopal (Judicial Member) and Ms. Shreesha Merla (Technical Member), has held that Section 238 of IBC overrides Section 12 of the Limitation Act, 1963. The Bench declined to condone a delay of 55 days in filing of appeal, which was caused due to time taken to obtain certified copy of order. The Bench further held that Rules of Procedure neither create any right in favour of a person, nor create a Cause of Action. If a Statute requires a certain remedy to be exercised in a particular manner and time, then the same cannot be exercised in any other manner except for the one specified. After Adoption Of Swiss Challenge Method, RA Not Allowed To Submit Revised Plan: NCLAT Delhi Case Title: Jindal Stainless Ltd. v Mr. Shailendra Ajmera Case No.: Comp. App. (AT) (Ins.) No. 1058 of 2022 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that after adoption of Swiss Challenge Method to find out the best plan, one Resolution Applicant cannot be allowed to submit a revised plan. The Bench placed reliance on the Supreme Court judgment in Ngaitlang Dhar vs. Panna Pragati Infrastructure Private Limited & Ors., Civil Appeal Nos. 3665-3666 of 2020, and held that after adoption of Swiss Challenge Method to find out the best plan, one Resolution Applicant cannot be allowed to submit a revised plan. The Bench observed that the decision of CoC to vote on the Resolution Plan after completion of Challenge Process and not to further accept any modification of the plan, should not be interfered with. The Application was filed by Shyam Sel and Power Ltd. on 07.08.2022, when CoC had already resolved the vote on all the plans and voting had also commenced w.e.f. 07.08.2022. Withdrawal Application U/S 12a Can’t Be Entertained After Approval Of Resolution Plan By COC: NCLAT Delhi Case Title: Hem Singh Bharana v M/s Pawan Doot Estate Pvt. Ltd. & Ors. Case No.: Company Appeal (AT) (Insolvency) No.1481 of 2022. The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that once the Committee of Creditors approve a resolution plan, no withdrawal application under Section 12A of IBC can be entertained. Approval of a Resolution Plan by the CoC prohibits the Resolution Applicant to modify or withdraw from the Plan, the same embargo is placed on CoC from changing its stand. It was observed that the Supreme Court in Ebix Singapore laid down that after approval by the CoC of a Resolution Plan, CoC itself is bound by its decision and cannot be allowed to go back from its decision and pass any other resolution. NCLAT Rejects Reliance Capital’s Creditor Plea To Vacate Status Quo Order Case Title: Vistra ITCL v. Torrent Investments Case No.: CA(AT)(Ins) 87/2023 The National Company Law Appellate Tribunal (NCLAT), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), disposed off the appeal filed by the Reliance Capital Creditor namely Vistra ITCL against the NCLT Mumbai order dated 23.01.2023. Torrent Investment which emerged as the successful bidder for Reliance Capital with a bid of Rs. 8640 Crores, filed an application before NCLT Mumbai challenging the fresh revised bid of Rs. 9400 Crores submitted by Hinduja Group and the NCLT Mumbai vide its order dated 03.01.2023 directed to maintain status quo. Subsequently, the COC of Reliance Capital decided to hold another round of auction which was challenged by Torrent Investment before NCLT Mumbai. NCLT Mumbai heard the parties reserved the order on 23.01.2023 and directed the parties to maintain the status quo regarding the CIRP of Reliance Capital until the order is pronounced in the week commencing 30th January. Vistra ITCL contended that NCLT cannot interfere with the COC commercial wisdom to approve an extended round of challenge for the Prospective Resolution Applicants of Reliance Capital. The NCLAT Bench was not inclined to pass any interim order and thereafter Vistra ITCL sought permission to withdraw the appeal and accordingly, the appeal was dismissed as withdrawn.

IBC Cases Weekly Round-Up: 23 January TO 29 JANUARY 2023

Pallavi Mishra

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