It was held that this appeal is premature, uncalled for, in absence of any final decision taken by the Adjudicating Authority under Section 31 and thus this appeal is also not maintainable.
The Learned Senior Counsel appearing on behalf of the ‘JSW Steel’ submitted that ‘Committee of Creditors’ have right to consider improved financial offers. According to him, the Appellant ie. ‘Tata Steel Limited’ as a ‘Resolution Applicant’ has no vested right or fundamental right to have its ‘Resolution Plan’ considered or approved. Further, according to him, a ‘Resolution Applicant’ cannot challenge a decision of the ‘Committee of Creditors’ at any stage, till a ‘Resolution Plan’ is approved by the Adjudicating Authority under Section 31.
Admittedly, the Adjudicating Authority has not taken any decision on any of the ‘Resolution Plan’ and therefore, the Appellate Adjudicating Authority held that there is no cause of action for the Appellant ‘Tata Steel’ to prefer the appeal. By impugned order dated 23rd April, 2018, the Adjudicating Authority has only allowed the ‘Committee of Creditors’ to consider the ‘Resolution Plan’ submitted by ‘Liberty House’, but that does not mean that the ‘Resolution Plan’ submitted by ‘Liberty House’ has been approved.
Judgement link : https://nclat.nic.in/Useradmin/upload/19807396735c58251eedb58.pdf