# In the matter of Lavasa Corporation Ltd.

> NCLT judgment dated 2023-11-10. Citation: TCN-2023-NCLT-00774. Union Bank of India, a financial creditor of Lavasa Corporation Limited (the Corporate Debtor),…

- **Court:** NCLT
- **Order date:** 10 Nov 2023
- **Citation:** TCN-2023-NCLT-00774
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lavasa-corporation-ltd-69c787cc

## Summary

### Background

Union Bank of India, a financial creditor of Lavasa Corporation Limited (the Corporate Debtor), filed an Interlocutory Application (IA No. 4340/2023) seeking the recall of an order dated 2023-07-21. The prior order had approved a Resolution Plan with 96.41% approval from the Committee of Creditors (CoC). The applicant also requested a fresh valuation of the Corporate Debtor's assets and a restraint on the respondents from acting on the approved Resolution Plan.

## Facts

Union Bank of India, a financial creditor, filed an Interlocutory Application seeking to recall a prior order approving a Resolution Plan for Lavasa Corporation Limited. The Resolution Plan had been approved by 96.41% of the Committee of Creditors (CoC), including the applicant. The applicant argued that it was facing a significant haircut (80%) on its investment and that the valuation reports used to approve the plan were outdated. The applicant requested a fresh valuation of the Corporate Debtor's assets and a restraint on the respondents from acting on the approved Resolution Plan. The court noted that the applicant was part of the CoC and had voted in favor of the plan. An appeal was already pending with the NCLAT against the order sought to be recalled. The

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## Issues and analysis

### Issue 1: Whether the Interlocutory Application No. 4340 of 2023 is maintainable for recalling the order …

**Ratio:** The power of recall can be exercised by the Tribunal is not to rehear the case to find

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**Reasoning:** The court reasoned that the applicant, being a member of the CoC, had voted in favor of

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**Interpretation:** The interpretation is that once a resolution plan is approved, the Tribunal's

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Union Bank of…
- **Respondents:** Lavasa Corporation…; Shailesh…

## Timeline

- **2023-07-21 — Order Passed by…**: Tribunal passed an order in I.A. No.1007 of 2023 ('Plan Approval Order') whereby the…
- **2023-11-10 — Order Del…**: The NCLT summarily dismissed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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