Case Note & Summary
The appeal was filed by Nitin Mittal against an order dated 08.06.2026 passed by the National Company Law Tribunal (NCLT), Mumbai, which approved a resolution plan submitted by Ritesh R. Mahajan, the Resolution Professional of Envirant Constructions Pvt. Ltd. The appellant contended that the funding for the plan was primarily based on a comfort letter dated 15.09.2024, which he had withdrawn prior to the approval of the plan. The respondent had filed a civil suit seeking specific performance of the comfort letter and additional financial deposits from the appellant. The appellant sought to have the plan rejected and the approval order set aside. However, the respondent pointed out that an intervention application filed by the appellant with a similar prayer was dismissed by the NCLT on the grounds that the financial dispute did not fall under the Insolvency and Bankruptcy Code (IBC). The court noted that the resolution plan included provisions for alternative funding should the appellant withdraw. Given that the resolution plan was approved and the financial dispute was still pending in civil court, the NCLAT found no merit in the appeal and dismissed it, while also disposing of pending applications related to the case.
Headnote
A) Insolvency Law - Approval of Resolution Plan - Dismissal of Appeal - Insolvency and Bankruptcy Code, 2016 - The appeal was dismissed as the resolution plan was approved and the financial dispute was pending in civil court, leaving all rights open for adjudication there. Held that the financial arrangements do not fall within the purview of the IBC (Paras 1-2).
Issue of Consideration
Whether the approval of the resolution plan should be set aside due to the withdrawal of the comfort letter and pending financial disputes.
Final Decision
The NCLAT dismissed the appeal, finding no merit in the appellant's arguments regarding the resolution plan approval. The court noted that the financial dispute was pending in civil court and did not fall under the IBC.
Law Points
- Insolvency proceedings
- approval of resolution plan
- financial arrangements
- intervention application
- specific performance
