The appellant challenged the whole process of entertaining the Resolution Plan, including its approval, on the ground that the Plan was received after expiry of 330 days, which is the maximum time allowed under Section 12 of the Code.
In addition, the appellant also contended that before the Corporate Insolvency Resolution Process (CIRP), the corporate debtor owed an electricity bill due of over ₹36 crore, whereas the amount it received by way of the Resolution Plan was ₹7.45 lakh.
The third objection raised by Senior Counsel Maninder Acharya on behalf of the appellant was that the Plan does not comply with Section 30(2) of the Code insofar as the operational creditor is concerned, as neither fair nor equitable amount has been allowed.
Senior Advocate Joy Saha, appearing for the respondents, submitted that on approval of the Resolution Plan, the claims raised by the appellants before initiation of the CIRP stands extinguished. In addition, the distribution does not violate any provisions of Section 30 of the Code, he contended.
Source: Barandbench
