Sunday, April 21, 2024
HomeLawSupreme Court allows arbitration to continue despite approval of corporate insolvency resolution...

Supreme Court allows arbitration to continue despite approval of corporate insolvency resolution plan

As per the plea, the respondent Ricoh owed ₹511 crores to the appellant. It was stated that the NCLT had approved a resolution plan rejecting the appellant’s (Fourth Dimension Solutions Ltd.) claims despite the appellant being the highest operational creditor of the respondent company, Ricoh India.

The Supreme Court had also approved the resolution plan despite the appellant’s challenge to the same being pending before the NCLAT. The top court while approving the plan had, however, directed the NCLAT to decide the appellant’s challenge to the resolution plan on merits.

Despite that, the NCLAT said that since the Supreme Court approved the resolution plan, it would be impossible for the tribunal to take a contrary stand and rejected the appellant’s challenge to the resolution plan.

This prompted the appellant to move the High Court.

“The consequence of the above observation is that the appellant has been left to hang dry without any recourse to satisfy its legitimate claims being the highest single operational creditor of respondent with dues of approximately Rs. 511 crores owed to it,” the petition said.

Source: Barandbench

RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments