CoC Commercial Wisdom – NCLT Upholds Accepted Resolution Plan

Case Details: Abhijit Realtor & Infraventures (P.) Ltd. vs. Rohit Mehra - [2025] 174 taxmann.com 618 (NCLT-Mum.)

Judiciary and Counsel Details

• Madhu Sinha, Technical Member & Reeta Kohli, Judicial Member
• Rakesh Kumar, Preeti Kashyap, Ankit Sharma, Varun Pandit, Rishabh Arora & Yash Dhawan, Advs. for the Applicant.
• Mustafa Doctor, Sr. Adv., Nishant Sogani, Saurabh Bachhawat, Shrishti Agnihotri, Divij Kumar, Advs. & Varun Tandon, for the Respondent.

Facts of the Case

In the instant case, the CIRP was initiated against the corporate debtor. The Resolution Professional (RP) invited resolution plans from prospective resolution applicants. The applicants (unsuccessful resolution applicants) filed the present application, praying for setting aside the decision of the Committee of Creditors (CoC) approving the resolution plan submitted by another resolution applicant and rejecting the applicants’ consortium bid.

The applicants alleged that the CoC had purportedly favoured the successful resolution applicant and rejected their consortium bid unfairly. They also contended that they had no knowledge of the highest bid amount. However, it was noted that the applicants were given ample opportunities to submit their resolution plan and bid in accordance with the challenge process. The applicants availed themselves of these opportunities and submitted their bid/resolution plan accordingly.

At no point did the applicants raise objections to the eligibility of the successful resolution applicant, nor did they object when their own names were included in the provisional list of Prospective Resolution Applicants (PRAs). It was evident that due process had been followed, and that the applicants’ resolution plan had been rejected on merits by the CoC, after due consideration and exercise of its commercial wisdom.

The NCLT thus observed that every opportunity had been provided to the applicants to participate in the process and improve their bid. Despite availing themselves of all such opportunities, their plan was rejected by the CoC in the interest of value maximisation and after applying its commercial wisdom.

NCLT Held

Accordingly, the NCLT held that the present application, seeking rejection of the resolution plan submitted by the successful resolution applicant on unfounded, unreasonable, and baseless grounds, could not be allowed.