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Object of IBC paramount, says NCLT

The Mumbai Bench of the National Company Law Tribunal (NCLT) has observed that rejection of a resolution plan on technicalities, without going into its merits, goes against the spirit of the Insolvency and Bankruptcy Code.Hearing the case of the applicant Omkara Assets Reconstruction Private Limited, the applicant, against the Interim Resolution Professional (IRP) of Unimark Remedies Ltd., the corporate debtor, the NCLT Bench noted that the applicant had submitted a resolution plan to the interim resolution professional (IRP) on December 11, 2018, even though IRP had set October 31, 2018 as the deadline.The applicant submitted that the CoC, at the 13th meeting held on December 12, 2018, refused to open the envelope containing the resolution plan submitted by the applicant solely on the ground that it was submitted after the cut-off date.Omkara alleged that the CoC acted in an arbitrary manner by refusing to accept the plan submitted by it and contended that no harm or prejudice would be caused to the company or the CoC or the corporate debtor, if the plan submitted by the applicant was considered purely on merit.

Source : https://www.thehindu.com/todays-paper/tp-business/object-of-ibc-paramount-says-nclt/article25904737.ece

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