Ms Nitrex Chemicals India Limited Vs Ravindra Beleyur and Ors [MA /523/2018 in CP/ 689/(IB)/CB/2017] - Synopsis
Team SoOLEGAL 7 Jan 2021

In this case, Ms Nitrex Chemicals India Limited Vs Ravindra Beleyur and Ors [MA /523/2018 in CP/ 689/(IB)/CB/2017], the Resolution Applicant had submitted an application demanding rejection of the resolution proposal accepted by the CoC on the grounds that its plan was superior, the CoC did not record its compliance with the effectiveness and efficacy of the approved plan. The Claimant had argued that the Resolution Professional and the Committee of Creditors did not allow the applicant the opportunity to be heard and that the conduct was thus not only in violation of the principle of natural justice but also in violation of the constitutional obligation to maximize the value of the assets and the involvement of all parties in a transparent manner. The applicant further submitted that the whole procedure relating to the acceptance of the resolution proposal in favour of Acme Chem Ltd had been carried out behind the back of the applicant and thus had to be quashed and set aside.  A reference was made to the order which was passed by the NCLT, Kolkata, in the case of Binani Cement Ltd Vs. Vijaykumar V Iyer, in which it was held that it was very unreasonable and arbitrary to refuse the opportunity to hear the claimant.
The Bench had observed that the claimant was not granted a fair opportunity to be heard resulting in violation of natural justice.  The Bench was also of the view that, since the resolution applicant does not have the right to vote in the CoC and it is the CoC that accepts or rejects the resolution plan, the resolution applicant should have been given the opportunity to attend the CoC meeting in which the resolution plan is to be discussed, to make representations and to express its opinion on the resolution plan submitted. The Resolution Applicant’s application was allowed by the Bench and the Committee of Creditors was directed to consider the plan afresh submitted by the Applicant by providing it reasonable opportunity of being heard. 


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