# In the matter of Committee of Creditor Through its lead Bank Bank of Baroda vs. Vivek Raheja, Resolution Professional of Baghauli Sugar & Distillery Ltd. & Anr.

> NCLAT judgment dated 2023-12-22. Citation: TCN-2023-NCLAT-00002. These appeals challenge the order dated 24.11.2023 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLAT-00002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/committee-of-creditor-through-its-lead-bank-bank-of-baroda-vs-vivek-raheja-resol-a22c9d3b

## Summary

### Background

These appeals challenge the order dated 24.11.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Allahabad Bench, Prayagraj) in I.A. No. 243 of 2023 filed by the Resolution Professional for approval of the Resolution Plan and I.A. No. 434 of 2023 filed by the Suspended Director of the Corporate Debtor praying for dismissal of I.A. No. 243 of 2023. The Committee of Creditors (CoC) filed Company Appeal (AT) (Ins.) No.1637 of 2023 and Company Appeal (AT) (Ins.) No.1642 of 2023, while the Successful Resolution Applicant Dalmia Bharat Sugar and Industries Limited challenged the orders by filing Company Appeal (AT) (Ins.) No.1640 of 2023 and Company Appeal (AT) (Ins.) No.1641 of 2023. The Resolution Professional Mr. Vivek Raheja filed Company Appeal

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## Facts

The case involves a challenge to an order passed by the Adjudicating Authority (National Company Law Tribunal) approving a resolution plan for Baghauli Sugar & Distillery Ltd. but directing the Resolution Professional (RP) and Committee of Creditors (CoC) to seek clarification from the Supreme Court regarding an earlier order dated 21.11.2013. Bank of Baroda initiated the CIRP under Section 7 of the IBC, which was admitted on 07.02.2020. The Suspended Director of the Corporate Debtor filed I.A. No. 161 of 2020 challenging the issuance of Form-G. The CoC decided to issue Form-G on 06.08.2020. The Adjudicating Authority granted an opportunity to the Suspended Board of Director to give a onetime settlement proposal to the Committee of Creditors. The Resolution Plan

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in directing the Resolution Professional and Committee of …

**Ratio:** The Adjudicating Authority should not impose conditions that are uncalled for and

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority committed an error in directing the

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**Interpretation:** The interpretation of the law is that once a resolution plan has been approved

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**Application:** The NCLAT applied this principle to the facts of the case, finding that the

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## Parties

- **Judges:** Ashok Bh…
- **Appellants:** Committee of…
- **Respondents:** BAGHAULI SUGAR &…; Vivek Raheja,…

## Timeline

- **2020-02-07 — Admission of Section 7…**: Adjudicating Authority admitted Section 7…
- **2020-08-06 — CoC Decision to Issue…**: CoC decided to issue…

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