The National Company Law Appellate Tribunal (NCLAT), New Delhi, has set aside an order allowing Ebix to withdraw its takeover bid for Educomp Solutions Ltd. which was approved by the committee of lenders.
The National Company Law Tribunal, Principal Bench, New Delhi had allowed Ebix to withdraw its takeover bid, against which Committee of Creditors of Educomp Solutions Ltd., through State Bank of India, moved the NCLAT.
The NCLAT held that NCLT, after approval of the Resolution Plan by the Committee of Creditors, had no jurisdiction to entertain or to permit the withdrawal application filed by Ebix.
This court comes to a cocksure conclusion that the ‘Adjudicating Authority’, in law cannot enter into the arena of the majority decision of the ‘Committee of Creditors’ other than the grounds mentioned in Section 32 (a to e) of the Insolvency and Bankruptcy Code, it added.
Section 32-A grants immunity to a resolution applicant from any offences committed by the company, prior to the commencement of corporate insolvency process.
It is not open for Ebix to take a ‘topsy turvy’ stance, after accepting that as per the provisions of the code that ‘no change or supplementary information to the ‘Resolution Plan’ shall be accepted after the submission date of ‘Resolution Plan’, NCLAT said.
Educomp, which owed lenders nearly ₹3,000 crore, was admitted into insolvency proceedings in 2017.