CIRP - Validity of resolution plan - Nil Payment to Operational ...

Case Laws Insolvency and Bankruptcy

April 30, 2024

CIRP - Validity of resolution plan - Nil Payment to Operational Creditors - waterfall mechanism - The Appellate Tribunal acknowledged the appellants' contention that fairness and equity should be ensured in the distribution of funds, including payment to operational creditors. However, it held that since the liquidation value of the corporate debtor was NIL, and the amount distributed to the corporate debtor under the resolution plan would also be NIL, the plan did not violate Section 30(2)(b) of the IBC. The Tribunal upheld the commercial wisdom of the CoC in approving the resolution plan. It cited established legal precedents that the CoC's decision is beyond judicial review, especially when it does not contravene any provisions of the law. The Tribunal found no error in the impugned order and dismissed the appeal.

View Source

← Previous Next →

CIRP - Validity of resolution plan - Nil Payment to Operational ...

Case Laws Insolvency and Bankruptcy

April 30, 2024

You may also like:

CIRP - Classification of the claim - Claim as contingent due to pending litigation - Citing legal precedent, the Tribunal upheld the classification of the claim at a...

Challenge to an approved Resolution Plan where no consideration was given to payment to an Operational Creditor. The key points are: Section 30(2)(b) mandates that...

CIRP - discrimination of Related Party Financial or Operational Creditor - IBC treats related parties as a separate category for specified purposes, excluding from the...

Approval of Resolution Plan - The Tribunal found the resolution plan’s treatment of operational creditors contrary to Section 30(2)(b) of the IBC, as operational...

Validity, Viability and Feasibility of Resolution Plan - keeping in mind the payment to all the Operational Creditors, is Nil, there is no aspect of discrimination...

Claim of Tax Dues after the Approval of Resolution Plan - CIRP process - Operational Debt or not - no claim was filed by the Appellants before the Resolution...

Validity of Resolution Plan - upfront payment suggested by the ‘Resolution Applicant’ being less than average of the liquidation value to the ‘Financial/Operational...

This case deals with the extinguishment of demands due to the non-filing of claims by the revenue during the Corporate Insolvency Resolution Process (CIRP) under the...

CIRP initiated against the Corporate Debtor terminated upon reaching full and final settlement with the Operational Creditor who filed Section 7 application. Quantum of...

Approval of Resolution Plan - extinguishment of security interest and the guarantees - Resolution Plan in question has consciously dealt with securities and personal...

The NCLAT addressed issues regarding the approval of a Resolution Plan by Suraksha Realty Limited, focusing on the treatment of claims filed in the CIRP of the Corporate...

Approval of resolution plan - The learned Counsel for the RP has submitted before us that Appellant itself has submitted twice the Resolution Plan, which could not be...

The NCLAT dismissed the appeal filed by the Appellant challenging the approval of the resolution plan for the Corporate Debtor. The key points are: The Interim...

The Committee of Creditors (CoC) does not have jurisdiction to substitute the successful resolution applicant (SRA) with another entity who was not part of the Corporate...

CIRP - Resolution Plan - The Resolution Applicant having himself expressed not insist for assignment of Personal and Corporate Guarantees and to be continued with the...

Quick Updates: