SME Times is powered by   
Search News
Just in:   • S.Korea ready for vaccine roll out as shipment begins for doses  • ISSDA concerns on revocation of duties on stainless steel imports  • Robust global cues, healthy FII inflows push equities higher  • Economy on cusp of a turnaround in fortunes: Shaktikanta  • Stricter norms for social media, OTT 
Last updated: 19 Jan, 2021  

Rupee.9.Thmb.jpg Delayed bid cannot be considered under IBC even if better: NCLAT

   Top Stories
» Economy on cusp of a turnaround in fortunes: Shaktikanta
» Stricter norms for social media, OTT
» 'Consumption, investment demand recovers'
» India's fiscal position to remain weak: Moody's
» 'Monetise & modernise' is our motto: PM on disinvestment
SME Times News Bureau | 19 Jan, 2021
In a major judgement, the National Company Law Appellate Tribunal (NCLAT) has held that any resolution plan proposed by a bidder who had not participated in the corporate insolvency resolution process (CIRP) cannot be considered by the NCLT, even if the plan offers a better deal.

"We are of the view that when the application for approval of resolution plan is pending before the adjudicating authority, at that time the adjudicating authority cannot entertain an application of a person who has not participated in CIRP even when such person is ready to pay more amount in comparison to the successful resolution applicant," said the NCLAT order.

The ruling gains significance as there have been several instances in which the resolution process get delayed as revised and new offers cropped up after the timeline for submission of resolution plans was over.

The judgement was made in a plea by Kalinga Allied Industries India. Kalinga had submitted a resolution plan in time. After several rounds of deliberations by the Committee of Creditors (CoC), a revised resolution plan was submitted by the company on December 19, 2018. The same was approved by the COC by requisite majority in the 13th meeting on December 28, 2018.

Thereafter, the resolution professional filed an application for approval of plan in January 2019.

Further, in February 2020, Hindustan Coils Ltd filed an application seeking direction for consideration of its resolution plan which is 12 per cent more than the offer of Kalinga which was already approved.

The NCLT approved the consideration of the new bid, following which Kalinga approached the appellate tribunal.

The DHFL matter is the latest in this regard when after all the contenders submitted their plans, Adani Group came up with a revised offer, following which the other suitors Piramal and Oaktree cried foul.
Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 26 Feb, 2021
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» Cryptocurrency Bill: Killing the messenger?(1)
» Canada: Variant cases surge as overall Covid-19 numbers drop(1)
» CBDT refunds over Rs 1.93 lakh cr to 1.90 cr taxpayers since April(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter