The National Company Law Appellate Tribunal, New Delhi, ...

Forfeiture of INR 10 Crores upheld by NCLAT. Appellant's non-compliance justifies forfeiture. CoC's actions lawful.

Case Laws     Insolvency and Bankruptcy

June 3, 2024

The National Company Law Appellate Tribunal, New Delhi, addressed the issue of forfeiture of INR 10 Crores by the Committee of Creditors (CoC) led by State Bank of India (SBI) and the alleged restraint by CoC. The Tribunal held that the forfeiture was lawful u/s Resolution Plan terms. The Appellant's failure to provide valid bank guarantees and meet financial commitments justified the forfeiture. The CoC's actions were deemed appropriate, and the Appellant's contentions were rejected. The Tribunal also found the Appellant's contradictory stance on the nature of the deposit. Referring to IBBI, the Tribunal concluded that there was no cause to proceed u/s Section 74(3) of the Code against the Appellant. The appeal was dismissed, affirming the forfeiture as per Resolution Plan and CIRP Regulations.

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