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TMI Blog2024 (4) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... and the risk involved. It is rather strange to argue that the superspecialists and financial experts were gullible and misunderstood the details, figures or data. The assumption is that the resolution applicant would submit the revival/resolution plan specifying the monetary amount and other obligations, after in-depth analysis of the fiscal and commercial viability of the corporate debtor - Absence or ambiguity of details and particulars should put the parties to caution, and it is for them to ascertain details, and exercise discretion to submit or not submit resolution plan. Records of corporate debtor, who are in financial distress, may suffer from data asymmetry, debatable or even wrong data. Thus, the provision for transactional audit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ian Henry Moses, Adv. ORDER 1. This order would decide the cross-appeals under Section 62 of the Insolvency and Bankruptcy Code, 2016 [ the Code ] filed by the successful resolution applicants Deccan Value Investors L.P. and DVI PE (Mauritius) Ltd.; the Committee of Creditors of Metalyst Forgings Limited; and Dinkar Venkatasubramanian - the Resolution Professional of Metalyst Forgings Limited. 2. The company in question, the corporate debtor, is Metalyst Forgings Ltd. 3. In our opinion, the impugned judgment dated 07.02.2020 passed by the National Company Law Appellate Tribunal [ NCLAT ] , New Delhi, which upholds the order dated 27.09.2019 passed by the National Company Law Tribunal [ NCLT or adjudicating authority ,] , Mumbai Bench, Mumba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was drawn to the proviso to Section 31(1) of the Code, which postulates that the adjudicating authority, before passing an order for approval of the resolution plan, must satisfy itself that the resolution plan has provisions for its effective implementation. Ebix Singapore Private Limited (supra) did examine this provision but rejected the argument on several grounds, including absence of legislative mandate to direct unwilling Committee of Creditors to re-negotiate or agree to withdrawal of the resolution plan at the behest of the resolution applicant. The effect of approval by the adjudicating authority under Section 31(1) of the Code makes the resolution plan binding on all stakeholders, even those who are not members of the Committ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... memorandum, as well as, the data in the virtual data room, access to which was granted to the prospective resolution applicant(s), before they had submitted their resolution plan(s). 10. We have also been taken through the documents, which would show the manufacturing output, as well as the capacity of realisation of the four units of the corporate debtor. The excise returns, as well as the VAT returns etc., were available in the virtual data room. 11. The Mott Macdonald Report was submitted by the said consultants in September, 2016 at the behest of the erstwhile promoters/directors of the corporate debtor. The report itself is hedged with conditions and disclaimers. Value and worth of the report, the data and projections were for the pros ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olution applicant would submit the revival/resolution plan specifying the monetary amount and other obligations, after in-depth analysis of the fiscal and commercial viability of the corporate debtor. Pointing out the ambiguities or lack of specific details or data, post acceptance of the resolution plan by the Committee of Creditors, should be rejected, except in an egregious case were data and facts are fudged or concealed. Absence or ambiguity of details and particulars should put the parties to caution, and it is for them to ascertain details, and exercise discretion to submit or not submit resolution plan. 16. Records of corporate debtor, who are in financial distress, may suffer from data asymmetry, debatable or even wrong data. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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