The appeal challenged the maintainability of an application ...

Appeal on Insolvency Code Application: Refunds of Rs. 3 Crores Denied, Rs. 25 Lakhs Approved by NCLAT Modification.

November 12, 2024

Case Laws IBC AT

The appeal challenged the maintainability of an application filed u/s 60(5) of the Insolvency and Bankruptcy Code seeking refund of an amount deposited as part of a settlement under a Memorandum of Understanding (MoU). The key points are: The CIRP of one corporate debtor (JDECL) was closed by allowing an application u/s 12A after payment of its entire debt of Rs. 3 crores. The MoU required payment of Rs. 25 lakhs for approval of the resolution plan for the other corporate debtor (UCL), but the plan was not approved. The NCLAT held that the application u/s 60(5)(c) was maintainable as it related to the insolvency resolution process. However, the prayer for refund of Rs. 3 crores paid for closing JDECL's CIRP was rejected as it would amount to double benefit. The NCLAT allowed refund of Rs. 25 lakhs paid for UCL's resolution plan, modifying the adjudicating authority's order to that extent.

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The appeal challenged the maintainability of an application ...

Appeal on Insolvency Code Application: Refunds of Rs. 3 Crores Denied, Rs. 25 Lakhs Approved by NCLAT Modification.

November 12, 2024

Case Laws IBC AT

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