If the Resolution Plan contains a clause that it can be modified with the 70% vote , Adjudicating Authority cannot interfere into the commercial wisdom of the CoC

The appeal was preferred against the order passed by the Adjudicating Authority, wherein the appelant was seeking direction to R-21and R-22 to vote on the “modified resolution”.

Learned Counsel for the Appelant submits that in the Resolution Plan itself, there was a clause that Resolution can be modified with 70% vote. The AA had rejected the application observing that Tribunal shall not interfere in the commercial wisdom of the CoC.

Further the AA granted liberty to the appealant to submit their representation to the CoC for their consideration of modified resolution.Hence it is upon CoC to take decision in accordance with the law.

Branch: NCLAT

Link: https://ibclaw.in/rakesh-kumar-agarwal-anr-vs-commissioner-of-cgst-ors-nclat-new-delhi/