Related Party Under Section 5(24) IBC Removed from Committee of Creditors Due to Common Control Structure

Resolution Professional's decision to remove appellant from Committee of Creditors upheld by NCLAT. The appellant, Hari Vitthal Mission, was determined to be a related party of Corporate Debtor under Section 5(24) of IBC due to common control by Kanoria Foundation. Kanoria Foundation held 99.9% stake in appellant and effectively controlled 31% of Corporate Debtor through intermediary entities. The tribunal confirmed RP's authority to determine related party status and endorsed findings that appellant qualified as related party under Section 5(24)(i) and (j), being a subsidiary of the same holding company/trust controlling Corporate Debtor. As related parties are prohibited from CoC participation under Section 21(2), appellant's removal was legally justified. Appeal dismissed, affirming Adjudicating Authority's order. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X