NCLAT sets aside liquidation order following CoC approving Resolution Plan

NCLAT sets aside liquidation order following CoC approving Resolution Plan

The Tribunal remanded the matter back to the Adjudicating Authority with a request to decide the matter as per law within three weeks

The National Company Law Appellate Tribunal (NCLAT) has set aside an order to send the Corporate Debtor – BBN Foods Hi-Tech Processing Pvt Ltd into liquidation as the Committee of Creditors (CoC) approved the Resolution Plan.

The matter titled Dinesh Vatsayan (Suspended Director BBN Foods Hi-Tech Processing Pvt Ltd) v. Gurdev Bassi (Liquidator, BBN Foods Hi-Tech Processing Pvt Ltd) & Anr. was placed before the Division Bench of the NCLAT at New Delhi comprising of Justice Jarat Kumar Jain and Dr Ashok Kumar Mishra.

The Appellant who is the suspended Director of the Corporate Debtor – BBN Foods Hi-Tech Processing Pvt Ltd submitted that there has been a settlement between the parties since the order of liquidation. The Resolution Plan submitted by the Appellant has been approved by the CoC by voting of 98.68 per cent. It was, therefore, prayed by the Appellant that the liquidation order be set aside and the matter be sent back to the Adjudicating Authority since CoC had approved the Resolution Plan.

The Respondent – Liquidator and the Financial Creditor who is the other Respondent – had no objections as they were in agreement with the submissions of the Appellant.

The Division Bench after going through the submissions remanded the matter back to the Adjudicating Authority while setting aside the liquidation order dated 15 December 2020. It further directed the CoC to decide the fees of the Resolution Professional (RP) within 10 days from the day of the judgment.

The Appeal was disposed of with no costs with a request to the Adjudicating Authority to decide the matter as per law within three weeks from the day of this judgment.