The adjudicating authority has jurisdiction to cancel a ...

Corporate Debtor's Nominee's PoA Cancelled After Resolution Plan Approval.

Case Laws     IBC

November 5, 2024

The adjudicating authority has jurisdiction to cancel a registered General Power of Attorney (PoA) executed in favor of the appellant, who was a nominee of the corporate debtor, when a resolution plan is approved by the committee of creditors (CoC). The PoA was given to facilitate development of property by the corporate debtor, and upon approval of the resolution plan, the successful resolution applicant takes over the corporate debtor and its functions. The appellant, being a suspended director, cannot assert rights over the property or create obstacles in the corporate debtor's revival. The Supreme Court has upheld the residuary jurisdiction of adjudicating authorities and the enforceability of approved resolution plans, even if they contain clauses contemplating withdrawal. The NCLT/NCLAT's jurisdiction is limited to examining compliance with Section 30(2) of the Insolvency and Bankruptcy Code. The appellant failed to demonstrate any grounds for faulting the resolution plan's approval.

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