Kundan Care Products Ltd vs Amit Gupta & Ors on 30 September, 2020
5. Heard learned counsel for the parties and considered their verbal
and written submissions in the backdrop of facts of the case and the
circumstances in which the impugned order came to be passed. It appears
Company Appeal (AT) (Insolvency) No. 653 of 2020
5
that in terms of the impugned order the Adjudicating Authority has
rejected the prayer emanating from the Resolution Applicant seeking
withdrawal of the Resolution Plan, which had been approved by the
Committee of Creditors and in respect whereof application under Section
31 of the I&B Code filed by the Resolution Applicant was pending
consideration before the Adjudicating Authority. The Adjudicating
Authority was of the view that it had no jurisdiction to permit withdrawal of
a Resolution Plan, which had been duly approved by the Committee of
Creditors. It has also been influenced by the fact that an issue of similar
nature was sub-judice before the Hon'ble Apex Court. It is brought to our
notice by learned Counsel for Respondent No.1 that the recent decision of
this Appellate Tribunal in "Committee of Creditors of Educomp
Solutions Ltd. Vs. EBIX Singapore Pte Ltd. - Company Appeal (AT)
(Insolvency) No.203 of 2020" squarely covers the present case where an
Appeal filed against order of Adjudicating Authority permitting withdrawal
of Resolution Plan by the Resolution Applicant, which had been approved
by the Committee of Creditors on the ground of the Resolution Plan having
been rendered commercially unviable on account of lapse of substantial
time and inordinate delay in Corporate Insolvency Resolution Process was
rejected by this Appellate Tribunal holding that the Adjudicating Authority
cannot enter into the arena of the majority decision of the Committee of
Creditors and once the Resolution Applicant has accepted the conditions of
Resolution Plan, it was not open to it to make a U-turn and wriggle out of
the liabilities imposed upon it under the Resolution Plan approved by the
Committee of Creditors. Para 95 of the aforesaid judgment rendered on
Company Appeal (AT) (Insolvency) No. 653 of 2020
6
29th July, 2020 relevant for purposes of disposal of this Appeal may be
extracted as under: -