# In the matter of Assets Care & Reconstruction Enterprise Ltd. Vs. Anish Niranjan Nanavaty & Ors. CA (AT) (Ins) No. 19 of 2021

> NCLAT judgment dated 2021-01-19. Citation: TCN-2021-NCLAT-00400. The appeal was filed against the Adjudicating Authority's (National Company Law Tribunal)…

- **Court:** NCLAT
- **Order date:** 19 Jan 2021
- **Citation:** TCN-2021-NCLAT-00400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/assets-care-reconstruction-enterprise-ltd-vs-anish-niranjan-nanavaty-ors-ca-87b74d0e

## Summary

### Background

The appeal was filed against the Adjudicating Authority's (National Company Law Tribunal) approval of a Resolution Plan for the Corporate Debtor, Reliance Infratel Limited. The Resolution Plan was approved on 19.01.2021, based on an order dated 3rd December, 2020, as it had been unanimously approved by the Committee of Creditors (COC). The appellant, Assets Care & Reconstruction Enterprise Limited, raised the issue that the Adjudicating Authority approved the Resolution Plan while withholding orders on an application filed by Doha Bank Q.P.S.C.

## Facts

The Corporate Debtor, Reliance Infratel Limited, had its Resolution Plan approved by the Adjudicating Authority on 19.01.2021, based on an order dated 3rd December, 2020. The Resolution Plan received unanimous approval from the Committee of Creditors (COC). Assets Care & Reconstruction Enterprise Limited, a Financial Creditor, filed an appeal challenging the approval, arguing that the Adjudicating Authority withheld orders on an application by Doha Bank Q.P.S.C. while approving the Resolution Plan. Several IAs (1960 of 2019 and 3055 of 2019) assailing the decision of the Resolution Professional recognizing the indirect lenders of the Corporate Debtor as Financial Creditors were pending. The Adjudicating Authority was aware of these pending applications but

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in approving the Resolution Plan while withholding orders …

**Ratio:** The approval of a Resolution Plan by the COC is a business decision resting upon

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**Reasoning:** The court reasoned that the Adjudicating Authority was conscious of the pending

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**Interpretation:** This interprets the scope of judicial review over decisions made by the COC and

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**Application:** The ratio and reasoning apply to the specific facts by affirming the

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## Parties

- **Judges:** Bansi Lal…; Ashok Kumar…; +1 more
- **Appellants:** Assets Care &…
- **Respondents:** Reliance Infratel…; Anish Niranjan…
- **Advocates:** Janak Dwa…; Nasifa Khandeparka…; +10 more

## Timeline

- **2020-12-03 — Impugned Ord…**: Date of the impugned order by…
- **2021-01-19 — Resolution Plan…**: Resolution Plan qua the Corporate Debtor- ‘Reliance Infratel Limited' was approved by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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