Case Note & Summary
The appellant, M/s. Rocksand Minerals Private Limited, a successful resolution applicant, filed an appeal under Section 61(3) of the Insolvency and Bankruptcy Code, 2016 against the order dated 20th March 2024 passed by the National Company Law Tribunal, Chennai Bench in M.A. No. 37/2021 in C.P.(IB) No. 1006/IB/2018. The impugned order directed enforcement of the resolution plan subject to certain conditions mentioned in the operative portion. The appellant filed IA No. 691/2024 seeking early hearing of the appeal. During arguments, the respondent's counsel pointed out that the relief sought by the appellant was for lifting the conditions imposed. The NCLAT, after hearing the parties, found no grounds to interfere with the conditions imposed by the Adjudicating Authority. The appeal was dismissed as withdrawn, granting liberty to the appellant to approach the Adjudicating Authority for any grievances regarding the implementation of the resolution plan.
Headnote
A) Insolvency Law - Resolution Plan - Conditions for Enforcement - Section 61(3) of the Insolvency and Bankruptcy Code, 2016 - The appellant, a successful resolution applicant, challenged the order of NCLT Chennai which directed enforcement of the resolution plan subject to certain conditions. The NCLAT held that the conditions imposed were within the authority of the Adjudicating Authority and no interference was warranted. The appeal was dismissed as withdrawn with liberty to approach the Adjudicating Authority for any grievances. (Paras 1-5)
Issue of Consideration
Whether the conditions imposed by the Adjudicating Authority in the order directing enforcement of the resolution plan are valid and whether the appeal against such conditions is maintainable.
Final Decision
The appeal was dismissed as withdrawn. The appellant was granted liberty to approach the Adjudicating Authority for any grievances regarding the implementation of the resolution plan.
Law Points
- Insolvency and Bankruptcy Code
- 2016
- Section 61(3)
- Resolution Plan
- Conditions for enforcement
- Appellate jurisdiction
Case Details
2024 LawText (NCLAT) (01) 13
Company Appeal (AT) (CH) (Ins) No. 127/2024
Ms. Nishitha, Mr. Adharsh S, Mr. Jerin Asher Sojan (for Appellant); Mr. V.V. Sivakumar (for RP), Mr. ML Ganesh (for R2), Mr. Ravi Rajagopalan (for R4)
M/S. ROCKSAND MINERALS PRIVATE LIMITED
J. Karthiga (Resolution Professional of G.K. Steel and Allied Industries Limited), State Bank of India, IFCI Limited, International Asset Reconstruction Company Private Limited
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Nature of Litigation
Appeal under Section 61(3) of the Insolvency and Bankruptcy Code, 2016 against an order of NCLT Chennai directing enforcement of resolution plan subject to conditions.
Remedy Sought
The appellant sought early hearing of the appeal and lifting of conditions imposed by the NCLT in the order directing enforcement of the resolution plan.
Filing Reason
The appellant, a successful resolution applicant, was aggrieved by the conditions imposed by the NCLT in the order dated 20th March 2024 for enforcement of the resolution plan.
Previous Decisions
NCLT Chennai passed an order on 20th March 2024 in M.A. No. 37/2021 in C.P.(IB) No. 1006/IB/2018 directing enforcement of the resolution plan subject to conditions.
Issues
Whether the conditions imposed by the NCLT in the order directing enforcement of the resolution plan are valid and should be interfered with by the appellate tribunal.
Submissions/Arguments
The appellant argued for early hearing and sought lifting of conditions. The respondent pointed out that the relief sought was for lifting conditions.
Ratio Decidendi
The NCLAT held that the conditions imposed by the Adjudicating Authority in the order for enforcement of the resolution plan were within its authority and no interference was warranted. The appeal was dismissed as withdrawn with liberty to approach the Adjudicating Authority.
Judgment Excerpts
The Appellant herein is a Successful Resolution Applicant.
By virtue of the Impugned Order in question, the Resolution Plan has been directed to be enforced subject to the conditions, as it has been given in the operative portion of the Judgment under challenge.
During the course of argument, the Learned Counsel for the respondent pointed out that the relief being sought by the appellant for the purposes of lifting the conditions.
After hearing the parties, we find no grounds to interfere with the conditions imposed by the Adjudicating Authority.
The appeal is dismissed as withdrawn. The appellant is at liberty to approach the Adjudicating Authority for any grievances regarding the implementation of the resolution plan.
Procedural History
The appellant filed an appeal under Section 61(3) of the Insolvency and Bankruptcy Code, 2016 against the order dated 20th March 2024 of NCLT Chennai. The appellant also filed IA No. 691/2024 for early hearing. The matter was heard on 24th July 2024 and the appeal was dismissed as withdrawn.
Acts & Sections
- Insolvency and Bankruptcy Code, 2016: 61(3)
