Once a resolution plan is approved by CoC and adjudicating authority under IBC, no alterations or modifications are permissible unless they are not in conformity with the mandate of IBC.

JUDGMENT :

AJAY RASTOGI, J.

Civil Appeal No. 1706 of 2023

1. The instant appeal has been filed by the successful resolution applicant (for short “SRA”) of the Corporate Debtor (Deccan Chronicle Holdings Ltd.) whose Resolution Plan was approved by 81.39% voting by the Committee of Creditors (CoC) and conditionally by the adjudicating authority/National Company Law Tribunal (for short “NCLT”) by order dated 3rd June, 2019, subject to the outcome of I.A. No. 155 of 2018 and that came to be decided by the adjudicating authority/NCLT, Hyderabad Bench by order dated 14th August, 2019 and that became the subject matter of challenge before the National Company Law Appellate Tribunal(for short “NCLAT”) at the instance of the Corporate Debtor wherein it was stated that what has been observed by the adjudicating authority while disposing of I.A. No. 155 of 2018 under its order dated 14th August, 2019, will amount to a modification/alternation of the approved Resolution Plan by the CoC which is impermissible in law.

2. The brief facts culled out from the record are that the appellant is the successful resolution applicant (SRA) of the Corporate Debtor-Deccan Chronicle Holdings Ltd. (DCHL), whose Resolution Plan was approved by the CoC of the Corporate Debtor with 81.39% voting share which was conditionally approved by the adjudicating authority (NCLT) by order dated 3rd June, 2019.

3. It has come on record that the Corporate Debtor/DCHL was incorporated on 16th December, 2002 under Certificate of Incorporation issued by the Registrar of Companies, Hyderabad and has been into the business of printing, publication and sale of daily newspapers under the trade names, “Deccan Chronicle” (English) and “Andhra Bhoomi” (Telugu) (hereinafter referred to as the “trademarks”).

4. The Corporate Insolvency Resolution Process (for short “CIRP”) was initiated under the Insolvency and Bankruptcy Code, 2016 (for short “IBC”) against DCHL by Canara Bank (Financial Creditor) before the adjudicating authority (NCLT). The petition filed by Canara Bank was admitted on 5th July, 2017 and the adjudicating authority imposed Moratorium under Section 14 of the IBC staying pending proceedings in all Courts against DCHL.

5. The Moratorium was extended for a further period of 90 days vide order of adjudicating authority dated 10th November, 2018.

6. The CIRP period of the Corporate Debtor ended on 15th February, 2019. Pursuant to initiation of Resolution Process, the Interim Resolution Professional (IRP) issued a public announcement and invited claims from the creditors of the Corporate Debtor. On receiving the claims, the IRP collated the same and constituted a Committee of Creditors (CoC).

7. That the Expression of Interest (EoI) was published in the AllIndia edition of Business Standard dated 8th February, 2018 for a widespread coverage with the last date for receipt of the EoIs being 15th February, 2018 (6.00 p.m.) which was later extended upto 17th April, 2018 and after various rounds of meetings of the CoC, the Resolution Plan submitted by the appellant (SRA) was deliberated upon in the 20th meeting of the CoC held on 10th December, 2018 and finally the Resolution Plan of the appellant was approved by the CoC with 81.39% of voting rights.

8. On 11th December, 2018, as per the provisions of Section 30(4) of the IBC read with Regulation 39 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the Resolution Plan of the appellant was found to be in compliance with the mandatory provisions of Section 30(2) of the IBC and the relevant Regulations, and it was later approved by the adjudicating authority by an order dated 3rd June, 2019 and the same became binding on Corporate Debtor, its employees, members, creditors and all stakeholders involved in the Resolution Plan, but as regards the brand name of the Corporate Debtor, application I.A. No. 155 of 2018 was pending seeking a declaration by the Corporate Debto