NCLAT dismissed the appeal, holding that after the rejection of the Resolution Plan and the issuance of fresh Form G, the appellant had no vested rights to revise the plan, as the process had reached its finality.
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, headed by Justice Ashok Bhushan (Chairperson) and Technical Member Mr. Barun Mitra, reviewed an appeal and held that a resolution applicant cannot claim any vested right to enforce an earlier resolution plan once it is rejected by the Committee of Creditors (CoC) and the Adjudicating Authority has directed the issuance of a fresh Form G, particularly when the applicant had the opportunity to participate in the revised process but failed to do so. The Tribunal concluded that the Adjudicating Authority acted within its jurisdiction, and its unchallenged orders had attained finality.
The NCLAT considered the appeal filed in the matter of Company Appeal (AT) (Insolvency) No. 1274 of 2024 regarding the Corporate Insolvency Resolution Process (CIRP) of Unijules Life Sciences Limited. The CIRP had commenced on March 8, 2019, and the appellant’s resolution plan had initially been approved with a 75.49% voting share by the Committee of Creditors (CoC) on December 30, 2019. However, subsequent developments led to disputes and further judicial proceedings.
An unsecured financial creditor filed an application (IA No. 1434 of 2020) seeking the revaluation of the corporate debtor's intangible assets, which the Adjudicating Authority allowed on August 4, 2023. The Resolution Professional was directed to conduct a valuation of the intangible assets, present a comprehensive valuation report to the CoC, and re-vote the appellant’s plan. This order was not contested. After fresh valuation reports were submitted, the CoC, in its meetings between January and March 2024, deliberated on the appellant’s revised offers but ultimately rejected the plan. Consequently, the Adjudicating Authority declared the application for the approval of the plan (IA No. 102 of 2020) infructuous and directed the issuance of a fresh Form G on March 11, 2024. This order, too, was not challenged.
Following the issuance of Form G on April 11, 2024, the appellant filed IA No. 1891 of 2024, seeking permission to amend and reconsider its resolution plan. The Adjudicating Authority dismissed the application on May 14, 2024, noting that the appellant was not disqualified and could participate in the fresh resolution process. The appellant argued that the revaluation process and subsequent proceedings were irregular and challenged the dismissal. However, the respondents, including the Resolution Professional, asserted that the appellant had been fully informed and involved throughout the process and had ample opportunity to submit a plan in the fresh process initiated under Form G.
The NCLAT observed that the appellant neither challenged the orders dated August 4, 2023, and March 11, 2024 nor submitted a plan under the fresh Form G process. It held that the directions issued by the Adjudicating Authority were within its jurisdiction and that the appellant had no residual rights to enforce its earlier plan. The tribunal concluded that there was no merit in the appeal, affirming the Adjudicating Authority's decision to dismiss IA No. 1891 of 2024 and dismissing the appeal in its entirety.
Mr. Krishnendu Dutta, Sr. Advocate with Mr. Neeraj Kant Singh, Ms. Alina Merin Mathew, Advocates represented the Appellant.
Mr. Arun Kathpalia, Sr. Advocate with Mr. Bharat Gupta, Mr. Varun Tyagi, Ms. Akshita Harjai, Mr. Ishan Srivastava, Ms. Saurabh Khanijon and Mr. Vishsesh Chauhan, Advocates appeared for Respondent No. 1 & Respondent No. 2.
Mr. Anant Gautam, Mr. Dinesh Sharma and Mr. Kushagra Nilesh, Advocates appeared for Respondent No. 4/CoC.
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REEDLAW 2025 NCLAT Del 01506
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