Improper handling of Resolution Plan - Respondent No.1 alleges ...

Insolvency and Bankruptcy

February 29, 2024

Improper handling of Resolution Plan - Respondent No.1 alleges that the Resolution Professional (RP) violated the process by opening a sealed cover containing the plan without the presence of the Committee of Creditors (CoC) and Principal Resolution Applicants (PRAs). - The RP admitted to opening the cover due to the unavailability of the password provided by the Respondent No.1, which the Authority found unsatisfactory and constituting a breach of due process. - the Appellant submits that the application which was filed by the Respondent No.1 was allowed without issuing any notice to any of the Resolution Applicants and only Resolution Professional was heard. - The NCLAT directed the RP to call for fresh bids from all PRAs, emphasizing the need for compliance with legal procedures in handling Resolution Plans.

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