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Panch Tatva Promoters Pvt. Ltd. v. GPT Steel Industries Ltd. & Ors.

Civil Appeal · 2021 INSC 494Decided 17 Sept 2021
Civil Appeal No. 5630 of 2021
Justice Dinesh Maheshwari · Justice Vikram Nath

Background

Panch Tatva Promoters, an appellant with an interest in insolvency proceedings against GPT Steel Industries, challenged an order passed during the Corporate Insolvency Resolution Process, at a stage when the Committee of Creditors had already approved a Resolution Plan that was awaiting approval from the Adjudicating Authority (the NCLT).

Decision Breakdown

The Supreme Court declined to interfere with the impugned order, holding that doing so at this juncture, while the Resolution Plan was still pending approval before the Adjudicating Authority, was inappropriate. The Court dismissed the appeal but clarified that the appellant remains free to raise its objections before the Adjudicating Authority itself, strictly in accordance with law, and that nothing said in the impugned order would prejudice its right to make those submissions there.

Lesson Learnt

The Supreme Court will generally decline to short-circuit an ongoing insolvency resolution process and will instead direct an aggrieved party to raise its specific objections before the Adjudicating Authority (NCLT), which is the body statutorily empowered to examine and approve a Resolution Plan.

Official source (sci.gov.in)View Judgment (PDF)

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