# In the matter of Orbit Electro Equipments Pvt. Ltd. & Anr. Vs. Kapil Dev Taneja & Anr. CA (AT) (CH) (INS) No. 142 of 2021

> NCLAT judgment dated 2021-07-02. Citation: TCN-2021-NCLAT-00213. The appeal was filed against the order dated 20.04.2021 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 2 Jul 2021
- **Citation:** TCN-2021-NCLAT-00213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/orbit-electro-equipments-pvt-ltd-anr-vs-kapil-dev-taneja-anr-ca-a825cc13

## Summary

### Background

The appeal was filed against the order dated 20.04.2021 passed by the National Company Law Tribunal, Hyderabad, Special Bench Court-1 in IA(IBC) No.143 of 2021 and IA No.19 of 2021 in CP(IB)No.269/9/HDB/2018. The Adjudicating Authority had observed that the resolution plan, though approved, had not been implemented, with only the first installment paid and significant delays occurring. The successful resolution applicant cited issues to be complied with by the Resolution Professional. The Adjudicating Authority remitted the Resolution Plan back to the Committee of Creditors (CoC) for fresh consideration and ordered the forfeiture of amounts paid by the successful resolution applicant.

## Facts

The 'Appellants' submitted a resolution plan to the Resolution Professional, which was approved by the 'Committee of Creditors' after receiving 100% approval. The 'Resolution Professional' moved IA No.439 of 2019 seeking approval of the 'Resolution Plan' from the 'Adjudicating Authority', which was granted on 18.12.2019. The 'Appellants' paid Rs.6,35,90,000/- (from 15.04.2019 to 28.08.2020) towards the implementation of the 'Resolution Plan'. Additionally, they paid Rs.15,67,625/- as interest on delay of payment and Rs.37,268/- as compound interest. Despite these payments, the 'Appellants' did not receive control of the 'Corporate Debtor'. The 'Adjudicating Authority' directed reconsideration of the already approved 'Resolution Plan' and forfeiture of the amounts paid

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in directing reconsideration of an already …

**Ratio:** Once a Resolution Plan is approved, the Committee of Creditors becomes 'functus officio',

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**Reasoning:** The Tribunal reasoned that the Adjudicating Authority exceeded its jurisdiction by

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**Interpretation:** The interpretation of the Insolvency and Bankruptcy Code suggests that once a

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**Application:** In this case, the Adjudicating Authority's direction to reconsider the approved

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## Parties

- **Judges:** Venugop…; V. P. S…
- **Appellants:** M/s Orbit Electro…
- **Respondents:** Kapil Dev…

## Timeline

- **2021-04-20 — Impugned…**: The Adjudicating Authority passed an order in IA(IBC) No.143 of 2021 and IA No.19 of 2021…
- **2019-12-18 — Resolution Plan…**: The 'Adjudicating Authority' granted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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