Kundan Care Products Ltd., the Appellant and Successful Resolution Applicant in the Insolvency Resolution Process of Astonfield Solar (Gujarat) Pvt. Ltd. (Corporate Debtor), filed an appeal against the Adjudicating Authority's order dated July 3, 2020, which rejected its application for withdrawal of its Resolution Plan and cancellation/revocation/return/refund of the Performance Bank Guarantee. The Adjudicating Authority rejected IA 1679/2019 filed in IB-940(ND)/2018, citing that the issue was already sub-judice before the Hon'ble Apex Court. The Appellant argued that there was no legal basis to hold that an application for withdrawal of a Resolution Plan post-approval is not maintainable.
Kundan Care Products Ltd. was the Successful Resolution Applicant for Astonfield Solar (Gujarat) Pvt. Ltd. The Adjudicating Authority rejected Kundan Care's application to withdraw its Resolution Plan. The application for withdrawal was based on the argument that there was no legal basis to prevent withdrawal post-approval. The Resolution Plan was approved by the Committee of Creditors (CoC). The Appellant argued that the I&B Code does not compel specific performance of a Resolution Plan. The Resolution Professional argued that withdrawal is not permissible after CoC approval, citing the Educomp Solutions case. The CoC also argued against withdrawal, stating it would be without jurisdiction and that the plan becomes a binding contract. The Resolution Plan was
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Kundan Care Products Ltd., the Appellant and Successful Resolution Applicant in the Insolvency Resolution Process of Astonfield Solar (Gujarat) Pvt. Ltd. (Corporate Debtor), filed an appeal against the Adjudicating Authority's order dated July 3, 2020, which rejected its application for withdrawal of its Resolution Plan and cancellation/revocation/return/refund of the Performance Bank Guarantee. The Adjudicating Authority rejected IA 1679/2019 filed in IB-940(ND)/2018, citing that the issue was already sub-judice before the Hon'ble Apex Court. The Appellant argued that there was no legal basis to hold that an application for withdrawal of a Resolution Plan post-approval is not maintainable.
Kundan Care Products Ltd. was the Successful Resolution Applicant for Astonfield Solar (Gujarat) Pvt. Ltd. The Adjudicating Authority rejected Kundan Care's application to withdraw its Resolution Plan. The application for withdrawal was based on the argument that there was no legal basis to prevent withdrawal post-approval. The Resolution Plan was approved by the Committee of Creditors (CoC). The Appellant argued that the I&B Code does not compel specific performance of a Resolution Plan. The Resolution Professional argued that withdrawal is not permissible after CoC approval, citing the Educomp Solutions case. The CoC also argued against withdrawal, stating it would be without jurisdiction and that the plan becomes a binding contract. The Resolution Plan was
…The Adjudicating Authority, National Company…
The Appellate Tribunal decided on Company Appeal…