Case Note & Summary
The National Company Law Appellate Tribunal dealt with two company appeals filed by personal guarantors, Ajay Jogindernath Mehra and Yogesh Jogindernath Mehra, against the admission of a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC). The appellants challenged the proceedings, asserting that the resolution plan they submitted had already been approved by the Committee of Creditors (COC) and was pending consideration before the Adjudicating Authority. During the hearing, the learned Counsel for the appellants stated that due to the approval of the resolution plan, the appeals should not be pursued on their merits. The Tribunal acknowledged this development and determined that the appeals were not required to be considered further. Consequently, the Tribunal closed both company appeals, indicating that the resolution plan's approval rendered the appeals moot. The decision reflects the Tribunal's approach to prioritize the resolution process under the IBC when a plan has already received approval.
Headnote
A) Insolvency Law - Admission of Petition - Challenge by Personal Guarantors - Insolvency and Bankruptcy Code, 2016, Section 95 - The appellants challenged the admission of a petition under Section 95 as personal guarantors. The court noted that the resolution plan submitted by the appellants had already been approved and was pending consideration before the Adjudicating Authority, leading to the conclusion that the appeals need not be ventured into on merits. Held that the appeals were closed in light of the circumstances (Paras 1-2).
Issue of Consideration
Whether the appeals of personal guarantors against the admission of a petition under Section 95 of the Insolvency and Bankruptcy Code should be considered given the approval of the resolution plan.
Final Decision
The Tribunal closed both company appeals as they were not required to be ventured into on their merits due to the approval of the resolution plan.
Law Points
- Admission of petition
- Personal guarantors
- Resolution plan approval
- IBC proceedings
