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ABHAY S. OKA, AUGUSTINE GEORGE MASIH
Noida Special Economic Zone Authority – Appellant
Versus
Manish Agarwal – Respondent
JUDGMENT
AUGUSTINE GEORGE MASIH, J.
1. In the present Appeals challenge is to the Judgment dated 14.02.2022 passed by the National Company Law Appellate Tribunal, Principal Bench, New Delhi (hereinafter referred to as “NCLAT”) which were preferred by the Appellant, i.e., NOIDA Special Economic Zone Authority, being the Operational Creditor (hereinafter referred to as “Appellant”) impugning the Order dated 05.10.2020 passed by the Adjudicating Authority of National Company Law Tribunal, New Delhi Bench (hereinafter referred to as “NCLT”) approving the Resolution Plan as presented on the approval by the Committee of Creditors, and also the Order dated 27.11.2020 vide which an application preferred by the Appellant, challenging the approval of the Resolution Plan, stood rejected.
2. Briefly, the facts are that the Respondent No.02, i.e., Shree Bhoomika International Limited, being the Corporate Debtor (hereinafter referred to as “Corporate Debtor”) was sub-leased the Plot bearing No. 59-I admeasuring 16,100 square meters at NOIDA Special Economic Zone (hereinafter referred to as “NSEZ”) by the Appellant, in capacity of lessee of the said land from the NOIDA Authority, vide Lease Deed dat
The court affirmed that the IBC provisions take precedence over other laws in insolvency matters, reinforcing the authority of the Committee of Creditors in approving Resolution Plans.
Resolution plan approved despite 99.92% haircut; unclaimed pre-CIRP claims extinguished upon section 31 approval; NCLT limits reliefs to IBC/Companies Act; new management shielded under section 32A; ....
Limited judicial review of CoC-approved resolution plan confined to Section 30(2) IBC compliance; commercial wisdom paramount.
The commercial wisdom of the Committee of Creditors in approving a resolution plan cannot be interfered with unless there is non-compliance with regulatory requirements.
The Commercial wisdom of the Committee of Creditors in approving resolution plans must be respected, and judicial review is limited to statutory compliance under the Insolvency and Bankruptcy Code.
Approved resolution plans under the Insolvency Code extinguish claims not included, barring enforcement actions for pre-existing statutory dues.
The rejection of a Resolution Plan must comply with statutory requirements, and commercial wisdom of the Committee of Creditors is paramount, limiting the adjudicatory review.
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