Case Note & Summary
The case involved two company appeals filed by Amar Ujala Ltd., a member of the Committee of Creditors (CoC) of Raama Paper Mills Ltd., challenging orders from the National Company Law Tribunal (NCLT) dated 07.01.2026. The appeals were based on the NCLT's decision to remit the resolution plan back to the CoC for reconsideration under the Insolvency and Bankruptcy Code, 2016 (I& B Code). The Appellant expressed concerns that findings in the impugned order could prejudice their rights, especially since the CoC had subsequently approved the plan with a 99.38% vote on 20.04.2026 and 21.04.2026. The Tribunal noted that the approval of the plan by the CoC frustrated the implications of the earlier NCLT order. It emphasized that the Adjudicating Authority must independently consider the newly approved plan without being influenced by the findings of the earlier order. The Tribunal requested the Adjudicating Authority to expedite the decision on the resolution plan, mandating a timeline of three months from the production of the certified copy of the order. The appeals were thus rendered infructuous and dismissed.
Headnote
A) Insolvency Law - Appellate Jurisdiction - Challenge to NCLT Order - Insolvency and Bankruptcy Code, 2016, Section 61 - The Appellant challenged the NCLT order dated 07.01.2026, which remitted the resolution plan back to the Committee of Creditors (CoC) for reconsideration. The Tribunal held that the subsequent approval of the plan by the CoC rendered the challenge infructuous and directed that the Adjudicating Authority must consider the new plan independently, without influence from the earlier findings. Held that the decision on the approved plan should be made expeditiously (Paras 2-5).
Issue of Consideration
Whether the findings of the impugned order would prejudice the rights of the Appellant after the subsequent approval of the plan by the Committee of Creditors.
Final Decision
The Tribunal dismissed the appeals as infructuous due to the subsequent approval of the resolution plan by the CoC and directed the Adjudicating Authority to consider the new plan independently and expeditiously.
Law Points
- Appellate jurisdiction
- reconsideration of plan
- independent decision-making
- expeditious resolution
