National Company Law Appellate Tribunal unimpressed with insufficient money plea
Sufficiency or insufficiency of the amount is a matter of a commercial decision of the Committee of Creditors
National Company Law Appellate Tribunal unimpressed with insufficient money plea Sufficiency or insufficiency of the amount is a matter of a commercial decision of the Committee of Creditors The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal filed against the order passed by the National Company Law Tribunal (NCLT) at the Ahmedabad Bench, which approved the...
National Company Law Appellate Tribunal unimpressed with insufficient money plea
Sufficiency or insufficiency of the amount is a matter of a commercial decision of the Committee of Creditors
The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal filed against the order passed by the National Company Law Tribunal (NCLT) at the Ahmedabad Bench, which approved the Resolution Plan for the Corporate Debtor.
The matter titled Deputy Commissioner, CGST Kalol, Gujrat v M/s Gopala Polyplast Ltd was heard by the Principal Bench of the National Company Law Appellate Tribunal at New Delhi, comprising of Justice A.I.S. Cheema and Dr Alok Srivastava.
The facts leading up to this appeal were that the Appellant – Deputy Commissioner, Central Goods and Services Tax (CGST) submitted that it had filed a claim of the outstanding GST dues recoverable from the Corporate Debtor – M/s Gopala Polyplast Ltd during its Corporate Insolvency Resolution Process (CIRP). The Appellant further submitted that the claim was admitted to the extent of ₹2,36,67,282 but the Resolution Plan approved by the Committee of Creditors made a provision of only ₹1,18,336 as full and final settlement of the dues of the Appellant.
The Appellant contended that the amount approved for the Appellant was too insufficient considering the claim which was outstanding.
The bench by referring to the judgment of 'Ghanashyam Mishra and Sons Private Limited v Edelweiss Asset Reconstruction Company Limited &. Others', Civil Appeal No. 8129 of 2019, concluded that the Resolution Plan approved was binding on the Central Government, State Government, any local authority, guarantors and other stakeholders.
The bench concluded that the sufficiency or insufficiency of the amount was a matter of the Commercial Decision of the Committee of Creditors and it would be inappropriate to interfere with it.
The appeal was, therefore, dismissed as it did not make any ground to admit the same.