Case Note & Summary
The dispute arose in the context of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, where the Appellant, Anuj Goyal, sought interim relief against the approval of a Resolution Plan by the Committee of Creditors (CoC). The Appellant filed an application to stay the consideration and approval of I.A. (Plan) No. 20 of 2025, which was pending before the National Company Law Tribunal. The Appellant contended that the CoC had misrepresented the net worth, leading to the non-consideration of his plan. The Respondents, including the Resolution Professional (RP), argued that the CoC had exercised its commercial wisdom in rejecting the plan and that granting the Appellant's request would set a precedent for other applicants whose plans were not accepted. The Tribunal, after hearing both sides, concluded that the CoC's decision was based on its commercial judgment and that the Appellant had not demonstrated a likelihood of irreparable loss. The Tribunal emphasized the need to consider the comparative hardship to other stakeholders and ultimately dismissed the application for interim relief. The Tribunal also indicated its intention to expedite the appeal process in the next listing and allowed the parties to mention the appeal for an out-of-turn hearing if necessary.
Headnote
A) Insolvency Law - Interim Relief - Stay on Resolution Plan Approval - Insolvency and Bankruptcy Code, 2016 - The Appellant sought a stay on the approval of a Resolution Plan, arguing misrepresentation of net worth by the RP. The Tribunal found no merit in granting interim relief as the CoC exercised its commercial wisdom not to approve the plan, and the balance of convenience did not favor the Appellant. Held that the appeal would be considered at final disposal (Paras 9-10).
Issue of Consideration
Whether the Appellant is entitled to interim relief in the form of a stay on the consideration and approval of the Resolution Plan pending appeal.
Final Decision
The Tribunal dismissed the application for interim relief, stating that the Appellant had not established grounds for the stay and that the CoC's decision was made in its commercial wisdom. The Tribunal indicated it would expedite the appeal process in the next listing.
Law Points
- Insolvency proceedings
- Commercial wisdom of CoC
- Interim relief
- Balance of convenience
- Locus standi
