This appeal challenges the approval of a resolution plan by the ...

Appeal Dismissed: NCLAT Confirms Resolution Plan Was Transparent; Due Diligence Required From Applicants.

September 12, 2024

Case Laws     IBC     AT

This appeal challenges the approval of a resolution plan by the adjudicating authority. The appellant contends that the resolution professional (RP) failed to disclose certain commercial spaces (4th to 9th floors) belonging to the corporate debtor. However, the NCLAT finds this submission incorrect based on the information memorandum and virtual data room shared with the appellant as a resolution applicant. The entire Westin Hotel, including the disputed floors assigned to another entity, belonged to the corporate debtor. The resolution plan was invited on an "as is where is basis," and all applicants were required to conduct due diligence. The appellant's failure to seek clarification cannot be attributed to the RP's non-disclosure. Therefore, the NCLAT dismisses the application challenging the approved resolution plan, finding no merit in the appellant's submissions.

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