TMI Blog2019 (3) TMI 1844X X X X Extracts X X X X X X X X Extracts X X X X ..... ble NCLAT has already held that the resolution plan is in conformity with section 30(2) of the I B Code 2016 and has given the specific direction to approve the plan in terms of section 31 of IBC with modification that the plan is to be implemented within the period of 12 years as offered by the successful resolution applicant - Adjudicating Authority can scrutinise the approved Resolution Plan only under parameters of section 30(2) and section 31 of the Code and Hon'ble NCLAT has already given a finding that Resolution Plan conforms with the provision of section 30(2) of the Code. Given the Directions of Hon'ble NCLAT we as adjudicating Authority we at this moment approve the resolution plan in terms of section 31 of the I B Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the jurisdiction to change its opinion in favour of the 'Resolution Plan' to make it a success and regulation 26(2) being directory which also stands deleted, we set aside the impugned order and hold that the 'Resolution Plan' being in conformity with section 30(2) warranted approval by the Adjudicating Authority. 25. However, we make it clear that to make the 'Resolution Process' successful, though it is open to the 'Committee of Creditors' to change its opinion by assenting in favour of one or other plan, we further hold that the 'Committee of Creditors' once voted in favour of the 'Resolution Plan' cannot change its views. 26. In the result, the case is remitted to the Adjudicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs other than enquiry into the autonomy or commercial wisdom of the dissenting financial creditors. Thus, the prescribed authorities (NCLT/NCLAT) have been endowed with limited jurisdiction as specified in the I B Code and not to act as a court of equity or exercise plenary powers. 39. In our view, neither the adjudicating authority (NCLT) nor the appellate authority (NCLAT) has been endowed with the jurisdiction to reverse the commercial wisdom of the dissenting financial creditors and that too on the specious ground that it is only an opinion of the minority financial creditors. The fact that substantial or majority per cent of financial creditors have accorded approval to the resolution plan would be of no avail, unless the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporate debtor and disavowing endless speculation. 41. The counsel appearing for the resolution applicant and the stakeholders supporting the resolution plan of the concerned corporate debtor, were at pains to persuade us to take a view that voting by the dissenting financial creditors suffers from the vice of being unreasonable, irrational, unintelligible and an abuse of exercise of power. The power bestowed on the financial creditors to cast their vote under section 30(4) is coupled with a duty to exercise that power with utmost care, caution and reason, keeping in mind the legislative intent and the spirit of the I B Code - fullest attempt should be made to revive the corporate debtors and not to mechanically shove them to the bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial decision of the CoC much less of the dissenting financial creditors for not supporting the proposed resolution plan. Whereas, from the legislative history there is contra indication that the commercial or business decisions of the financial creditors are not open to any judicial review by the adjudicating authority or the appellate authority. 7. In the above case, Hon'ble Supreme Court has held that the judicial scrutiny of the approved resolution plan can only be done under the parameters of sections 30(2) and 31(1) of the IBC, 2016. Hon'ble Supreme Court has further held that no corresponding provision has been envisaged by the legislature to empower the resolution professional, the adjudicating authority (NCLT) or f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sful resolution applicant. It is pertinent to mention that given the law laid down by Hon'ble Supreme Court in K Shashidhar (supra) scope of judicial review by Adjudicating Authority is limited. Adjudicating Authority can scrutinise the approved Resolution Plan only under parameters of section 30(2) and section 31 of the Code and Hon'ble NCLAT has already given a finding that Resolution Plan conforms with the provision of section 30(2) of the Code. Given the Directions of Hon'ble NCLAT we as adjudicating Authority we at this moment approve the resolution plan in terms of section 31 of the I B Code 2016. 11. Designated Registrar is directed to communicate this order immediately to the Resolution professional, Successful Reso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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