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Opportunity given to ‘resolution applicants’ to revise their offer before final approval is permissible in law

February 7, 2019[2019] 102 taxmann.com 103 (NCLAT- New Delhi)
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I&B Code : Prior to 'Committee of Creditors' voting upon 'Resolution Plan', it is open to 'Committee of Creditors' to call for and consider 'improved financial offer(s)' in accordance with statutory mandate to ensure value maximization. 'Process Document' for 'Corporate Insolvency Resolution Process' of 'Corporate Debtor' does not curtail powers of 'Committee of Creditors' to maximize value. 'Committee of Creditors' have right to negotiate better terms with 'Compliant Resolution Applicant(s)'. The 'Resolution Professional' in consultation with 'Committee of Creditors' can extend timelines at its sole discretion if expedient for obtaining best 'Resolution Plan' for Company. Therefore, granting more opportunity to all eligible 'Resolution Applicants' to revise its 'financial offers', even by giving more opportunity, is permissible in Law. However, all such process should complete within time frame

• Where, by impugned order, Adjudicating Authority had only allowed 'Committee of Creditors' to consider 'Resolution Plan' submitted by 'Liberty House', that did not mean that 'Resolution Plan' submitted by 'Liberty House' had been approved. Hence, challenge to order passed by Adjudicating Authority by applicant 'Tata Steel Limited', one of 'Resolution Applicants' for 'Bhushan Power & Steel Limited' (Corporate Debtor) being premature, uncalled for, in absence of final decision taken by Authority under section 31, would not be mainatainable.

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