NCLAT Rightly Upheld AA’s Order Refusing Substitution of Resolution Applicant as Appellant’s RP Was Already Approved | SC

Case Details: UV Asset Reconstruction Company Ltd. v. Aircel Ltd. - [2024] 164 taxmann.com 480 (SC)

Judiciary and Counsel Details

• Dr. Dhananjaya Y Chandrachud, CJI. J B Pardiwala & Manoj Misra, JJ.
• Nikhil Nayyar, Sr. Adv. Dhruv Dewan, Ms Sugandha Batra, Ms Sanjukta Roy, Harsh Vardhan Arora, Advs. & Rohan Batra, AOR for the Petitioner.

Facts of the Case

In the instant case, appellant, whose resolution plan was approved filed an application before NCLT to substitute resolution applicant with another entity. The appellant submitted that he cannot be Resolution Applicant in view of the clouds on the eligibility of the Appellant, hence, he has prayed for substituting another Resolution Applicant. However, NCLT rejected said application, stating that a new resolution applicant could not be substituted.

Consequently, the appellant challenged NCLT’s order. NCLAT upheld NCLT’s order, affirming that appellant’s plan was approved. Subsequently, the appellant filed an appeal before Supreme Court.

Supreme Court Held

The Supreme Court held that there was no reason to interfere with NCLAT’s order, instant appeal filed by appellant was to be dismissed.

List of Cases Reviewed

• UV Asset Reconstruction Company Ltd. v. Aircel Ltd. [2024] 164 taxmann.com 479 (NCLAT -New delhi) (para 2) affirmed, See Annex.