2020 (6) TMI 494 - AT - Insolvency and Bankruptcy

Approval of Resolution Plan - Appellant has challenged the decision for fresh valuation as made by the Adjudicating Authority on the ground that it is not permissible - HELD THAT - We are not inclined to interfere with the impugned order as no party has a right to say whether the Adjudicating Authority should go for further valuation before approval of the plan or not and it is open to the Adjudicating Authority to satisfy itself of the plan approved by the Committee of Creditors, to ascertain whether to approve the plan under Section 31 of the I B Code or not. Appeal disposed off.

Summary

Issues:
1. Challenge against fresh valuation order in Corporate Insolvency Resolution Process.

Analysis:
The judgment pertains to a challenge against a decision for fresh valuation made by the Adjudicating Authority in the Corporate Insolvency Resolution Process. The resolution plan submitted by the Appellant, an Asset Reconstruction Company, had been approved by the Committee of Creditors for 'Unimark Remedies Limited,' the Corporate Debtor. However, the Adjudicating Authority in Mumbai had not passed any order under Section 31 of the I&B Code approving or rejecting the plan, as it had called for fresh valuation. The Appellant contested this decision, arguing that it was impermissible.

The Appellate Tribunal, after hearing the arguments from both parties, declined to interfere with the impugned order for fresh valuation. The Tribunal emphasized that no party has the right to dictate whether the Adjudicating Authority should conduct further valuation before approving the plan. It was reiterated that it is within the Adjudicating Authority's discretion to ensure the plan approved by the Committee of Creditors is satisfactory before granting approval under Section 31 of the I&B Code. The Tribunal expressed hope that the Adjudicating Authority in Mumbai would issue an appropriate order under Section 31, considering both the valuation and the approved plan. Additionally, the Tribunal condoned the delay of 12 days in filing the appeal and disposed of the appeal with the aforementioned observations.