Case Note & Summary
The appeals arose from an order dated 25.07.2025 by the National Company Law Tribunal (NCLT) concerning the Corporate Insolvency Resolution Process (CIRP) of IVR Prime IT SEZ Pvt. Ltd. initiated on 19.09.2019. The Appellant, M/s Vasu Buildcon, and Mr. Ankit Pathak, a suspended director, challenged the NCLT's decision allowing the publication of a fresh Form G after the CoC rejected their revised Resolution Plan. The CIRP was initiated based on a petition from Nupur Finvest Private Limited, and Kashi Viswanathan Sivaraman was appointed as the Resolution Professional. The CoC had previously approved the Appellant's Resolution Plan with 100% voting share, but after a Supreme Court judgment, the NCLT remitted the plan for reconsideration regarding the Noida Authority's status as a secured creditor. The Appellant submitted a revised plan, but it failed to secure the necessary approval in the CoC meeting. The CoC subsequently decided to publish a fresh Form G, which the Appellant contested, arguing that the CoC exceeded its jurisdiction by reopening the entire plan. The Tribunal analyzed the arguments, emphasizing the CoC's commercial wisdom and the limited scope of the remand order. It concluded that the CoC was justified in its actions, leading to the dismissal of the appeals.
Headnote
A) Insolvency Law - Committee of Creditors' Authority - Reopening of Approved Resolution Plan - Insolvency and Bankruptcy Code, 2016, Sections 30, 31 - The Appellant contended that the CoC exceeded its jurisdiction by reopening the approved Resolution Plan and publishing a fresh Form G. The Tribunal held that the CoC acted within its commercial wisdom and was entitled to reassess the feasibility and viability of the revised plan, thus permitting the publication of a fresh Form G (Paras 13-16).
Issue of Consideration
Whether the Committee of Creditors could reopen the approved Resolution Plan and publish a fresh Form G after the remand order.
Final Decision
The Tribunal dismissed the appeals, affirming the NCLT's order allowing the publication of a fresh Form G. It held that the CoC acted within its commercial wisdom and was justified in its decision to reassess the revised Resolution Plan.
Law Points
- Insolvency and Bankruptcy Code
- 2016
- Committee of Creditors
- commercial wisdom
- Resolution Plan approval
- judicial review limitations
Case Details
2026 LawText (NCLAT) (10) 41
CA (AT) (Ins.) No. 1212 of 2025 and CA (AT) (Ins.) No. 1225 of 2025
Mr. Pankaj Mittal, Mr. Abhijeet Sinha, Mr. Niraj Chamyal, Ms. Aishwarya Prasad, Mr. Ishaan Duggal, Ms. Ruchi Goyal, Mr. Abhirup D., Mr. Aditya Nayyar, Mr. Lav Dhawan, Mr. Devansh Gupta
M/s Vasu Buildcon (CA (AT) (Ins.) No. 1212 of 2025), Ankit Pathak (CA (AT) (Ins.) No. 1225 of 2025)
Kashi Viswanathan Sivaraman (Resolution Professional of IVR Prime IT SEZ Pvt. Ltd.)
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Nature of Litigation
Appeals against NCLT order regarding CIRP and publication of Form G.
Remedy Sought
Appellants sought to set aside the NCLT order allowing publication of a fresh Form G.
Filing Reason
Challenging the CoC's decision to reopen the Resolution Plan and publish a fresh Form G.
Previous Decisions
NCLT had previously approved the Appellant's Resolution Plan with 100% voting share.
Issues
Whether the CoC exceeded its jurisdiction by reopening the approved Resolution Plan.
Whether the publication of a fresh Form G was justified under the circumstances.
Submissions/Arguments
The Appellant argued that the CoC could not reopen the approved Resolution Plan and that the remand order was limited to reconsideration of the Noida Authority's status.
The Respondents contended that the CoC acted within its commercial wisdom and was entitled to reassess the feasibility and viability of the revised plan.
Ratio Decidendi
The CoC has the authority to reassess and make commercial decisions regarding the Resolution Plan, and such decisions are generally immune from judicial review unless there is a clear jurisdictional error.
Judgment Excerpts
The CoC acted within its commercial wisdom and was entitled to reassess the feasibility and viability of the revised plan.
The Tribunal held that the CoC's decision to publish a fresh Form G was justified under the circumstances.
Procedural History
The CIRP was initiated on 19.09.2019. The NCLT approved the Appellant's Resolution Plan with 100% voting share. Following a Supreme Court judgment, the NCLT remitted the plan for reconsideration regarding the Noida Authority's status. The CoC rejected the revised Resolution Plan and decided to publish a fresh Form G, leading to the appeals.
Acts & Sections
- Insolvency and Bankruptcy Code, 2016: Sections 7, 30, 31
