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TMI Blog2023 (6) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... quidator contrary to the Statutory Provisions, by disqualifying the Appellant under Section 34 (4)(a) of the Code. In Company Appeal (AT) (CH) (Ins) No. 181 of 2022 [ 2023 (6) TMI 505 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , CHENNAI ] has set aside the rejection of the Resolution Plan by the Adjudicating Authority holding that this Tribunal is of the considered view that the Adjudicating Authority ought not to have rejected the Resolution Plan, more so, when the principal objective of the Code is that revival of the Corporate Debtor and Resolution . Liquidation ought to be the last resort, keeping in view the scope and spirit of the Code. As Liquidation itself is set aside, this Company Appeal is rendered infructuous and for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under the law. We hold that the Resolution Plan is in contravention of Section 30 (2) (e) of I B Code, 2016. 11. This Bench earlier in the matter of ARCIL VS Viceroy Hotels Limited has taken a view that the resolution plan submitted by an ARC requires prior approval from the Reserve Bank of India (RBI) under SARFAESI Act. This Bench relies on para 85 of Hon'ble Supreme Court judgement in the matter of Manish Kumar vs Union of India [(2021) SCC Online SC 30), which is reproduced hereunder:- The resolution professional has to examine each resolution plan received by him on the basis of the invitation made by the resolution professional under Section 25(h) and ascertain whether the plan is in conformity with the various crite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BI ought to be impleaded or not, this Tribunal finds it relevant to place reliance on the submissions of the Learned Counsel regarding whether prior approval of RBI is required for participating as a Resolution Co-Applicant under the Code. It is submitted in Para 4 of the Notes of Submissions that ARC does not require prior approval of RBI for participating as a Resolution Co-Applicant. The relevant Paragraph is reproduced as herein: It is further submitted that an ARC does not require prior approval of RBI for participating as a resolution co-applicant under IBC provided any of the activities undertaken by the ARC as part of the resolution plan submitted by it is not prohibited under SARFAESI Act. Hence, prima facie, when an ARC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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