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ARTICLE · 16 APRIL 2025

CoC's Unfettered Authority vs. RP's Regulation 39(1A) Limitation

IndiaLaw LLP
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On 28 March 2025, the National Company Law Appellate Tribunal (NCLAT) delivered a significant judgment in the case of Sagar Stone Industries vs. Sajjan Kumar Dokania & Ors.

IndiaInsolvency/Bankruptcy/Re-Structuring
Rahul Sundaram
Rahul Sundaram

On 28 March 2025, the National Company Law Appellate Tribunal (NCLAT) delivered a significant judgment in the case of Sagar Stone Industries vs. Sajjan Kumar Dokania & Ors., dismissing two appeals filed by an unsuccessful Resolution Applicant challenging the order passed by the Adjudicating Authority (National Company Law Tribunal, NCLT) on 21 February 2025. The bench, comprising Justice Ashok Bhushan, Technical Member Barun Mitra, and Member (Technical) Arun Baroka, analysing the legal provisions upheld the NCLT's decision.

Background of the Case

The case related to the Corporate Insolvency Resolution Process (CIRP) of Jabalpur MSW Pvt. Ltd. (Corporate Debtor). During the resolution process, ten resolution plans, including one submitted by Sagar Stone Industries (Appellant), were considered by the Committee of Creditors (CoC). On 11 June 2024, the CoC approved the resolution plan of the Successful Resolution Applicant (SRA) with a 100% vote share. The Appellant

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