The NCLAT Principal Bench held that Once the Appellant showed their disinclination in the resolution process, they cannot seek further extension of time to submit the resolution plan.
The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench comprising Justice Rakesh Kumar Jain and Kanthi Narahari, Technical Member were on Friday hearing an Appeal filed by the Resolution Applicant and held that Once, the Appellant himself showed their disinclination in the resolution process and requested for the refund of earnest money and the same was returned, it does not lie in their mouth to seek further extension of time of 15 days to submit the resolution plan as they were no more part of the process.
Respondent's Submission:
Counsel for the Respondent submitted that there was no error in the impugned order because the period of an extension was not within the domain of the Appellant to seek and if the Appellant himself did not choose to appear when the matter was being heard, there was no option for the Adjudicating Authority but to pass the order.
The Respondent argued that the Appellant had deposited the participation money of Rs. 5 Lacs as a prospective resolution applicant which was withdrawn by them on 15.03.2022 on the ground that they are no more interested in the process and the said money was refunded on 04.04.2022, whereas the Application was filed on 05.04.2022. It is thus submitted that once the participation money was withdrawn and the Appellant himself alleged that they have no interest in the resolution process, the Application at their instance filed on 05.04.2022 was totally misconceived and had rightly been dismissed.
NCLAT Analysis:
In the present case, the precise question was whether the application, dismissed by the Adjudicating Authority was maintainable even for seeking permission to submit a resolution plan within 15 days after withdrawing from the resolution process?
The Appellate Authority observed, "Once the Appellant himself showed their disinclination in the resolution process and requested for the refund of earnest money as back on 15.03.2022 and the same was returned on 04.04.2022 as has been mentioned in the email dated 06.04.2022, it does not lie in their mouth to seek further extension of time of 15 days to submit the resolution plan as they were no more part of the process."
The appeal was dismissed.
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