Whether an unsuccessful resolution applicant can assail an approved resolution plan?
An appeal was preferred by Mr. M.K. Rajagopalan, being an unsuccessful resolution applicant (“Appellant”) of Vasan Health Care Private Limited (“Corporate Debtor”) before the National Company Law Appellate Tribunal (“NCLAT”) being aggrieved by Order dated 03.02.2023 (“Impugned Order”) whereby the resolution plan submitted by ASG Hospital Private Limited (“SRA”) was approved by the National Company Law, Chennai (“NCLT”).
The NCLAT pointed out that the Corporate Insolvency Resolution Process (“CIRP”) proceedings of the Corporate Debtor came to an end on 10.03.2022 and hence, the contention of the Appellant to rewind the entire process and to vote on the resolution plan submitted by the Appellant is impermissible.
The NCLAT held that the Appellant being an ‘Unsuccessful Resolution Applicant’ had no locus to assail a resolution plan or the implementation of the resolution plan. The NCLAT further held that the Appellant did not qualify as a stakeholder as per Section 31 of the Insolvency & Bankruptcy Code, 2016 when the Appellant is not privy to the resolution plan.
In light of the above, the appeal filed by the Appellant was not entertained and thus, the same was rejected.
Case referred: M.K. Rajagopalan vs S. Rajendran & another [Company Appeal (AT) (CH) (INS) No. 58 of 2023]