National Company Law Appellate Tribunal (NCLAT), New Delhi bench comprising of Justice Jarat Kumar Jain, Judicial Member and Dr. Ashok Kumar Mishra, Technical Member was hearing the appeals filed by the Appellants under Section 61 of the Insolvency and Bankruptcy Code, 2016 against the impugned order dated 08.06.2021 passed by the Adjudicating Authority, National Company Law Tribunal, Mumbai Bench wherein the Adjudicating Authority has approved the Resolution Plan submitted by Resolution Applicant - Twin Star Technologies Limited.
The Bench noted that "It was very much clear that prior approval of the CCI had not been obtained as per proviso to section 31(4) of the Code. The approved Resolution Plan requires review and reconsideration for the legal compliances."
"Statutory compliances do not fall under the commercial wisdom of the CoC. Hence, the statutory compliances as mandated by the proviso to Section 31(4), have to be ensured before the Resolution Plan is approved by CoC." The Bench further noted.
The Appellate Tribunal had come to the conclusion that Section 30(2)(b) of the Code has not been complied with and hence, the approval of the Resolution Plan was not in accordance with Section 31 of the Code. Accordingly, the approval of the Resolution Plan by the CoC as well as Adjudicating Authority was set aside and the matter was remitted back to CoC for completion of the process relating to CIRP in accordance with the provisions of the Code.
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