2023 (6) TMI 1007 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , CHENNAI

Rejection of Resolution Plan - Section 31(1) of the ‘Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Having observed that the Resolution Plan preferred by one of the Resolution Applicants, required prior approval of RBI, the Adjudicating Authority, while rejecting the Resolution Plan passed an order for Liquidation. The Appellant herein is the Interim Resolution Professional (IRP) whose main grievance is that while ordering Liquidation of the Corporate Debtor, the Adjudicating Authority had appointed the 2nd Respondent herein as the Liquidator contrary to the Statutory Provisions, by disqualifying the Appellant under Section 34 (4)(a) of the Code.

In Company Appeal (AT) (CH) (Ins) No. 181 of 2022 [2023 (6) TMI 505 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , CHENNAI] has set aside the rejection of the Resolution Plan by the Adjudicating Authority holding that this ‘Tribunal’ is of the considered view that the Adjudicating Authority ought not to have rejected the Resolution Plan, more so, when the principal objective of the Code is that ‘revival of the Corporate Debtor and Resolution’. Liquidation ought to be the last resort, keeping in view the scope and spirit of the Code.

As Liquidation itself is set aside, this Company Appeal is rendered infructuous and for all the aforementioned reasons, the present Company Appeal is dismissed as an infructuous one - apepal dismissed.