SNG & Partners Represented 90% of CoC Members in Univatsu India Resolution Plan Dispute Before NCLAT
SNG & Partners represented 90 percent of Committee of Creditors (CoC) members, i.e., State Bank of India (SBI) and IL&FS, before the National Company Law Appellate Tribunal, New Delhi (the “Appellate Tribunal”) in the matter concerning the resolution plan of Univatsu India Ltd. for the Corporate Insolvency Resolution Process (CIRP) of Setubandhan Infrastructure Ltd.
The Appellate Tribunal, vide its judgment dated 09.07.2025, allowed the appeals preferred against the order of the National Company Law Tribunal, Mumbai (the “Adjudicating Authority”), which had dismissed the application filed by the Resolution Professional seeking approval of the resolution plan submitted by Univatsu India Ltd., the Successful Resolution Applicant.
In Univatsu India Ltd. v. Setubandhan Infrastructure Ltd. (formerly known as Prakash Constrowell Ltd.) & Ors. Company Appeals INS 612 & 613 of 2025, the Appellate Tribunal held that the Adjudicating Authority, while exercising its limited jurisdiction of judicial review under the Insolvency and Bankruptcy Code, 2016, is not empowered to examine or reconsider the merits of a resolution plan or supplant its own views over the commercial wisdom of the CoC.
The Appellate Tribunal observed that the Adjudicating Authority’s reasons for rejecting the resolution plan were contrary to the material on record. It noted that the Adjudicating Authority did not find the resolution plan non-compliant with Regulation 38 and 39 of the CIRP Regulations, 2016, but impermissibly reconsidered the financial aspects, which is outside its scope under settled law.
The judgment reinforced that the power to approve or reject a resolution plan rests solely with the CoC and is protected from judicial interference unless it contravenes express legal provisions or public interest. Setting aside the impugned order and expunging the remarks made against the Resolution Professional, the Hon’ble NCLAT extended the CIRP period by 90 days and directed the Adjudicating Authority to remit the plan back to the CoC for fresh consideration in light of clarifications sought.
SNG & Partners represented 90 percent of CoC members, i.e., SBI and IL&FS, through Mr. Abhijeet Sinha, Sr. Advocate, duly briefed by Mr. Lokesh Malik and Ms. Atika Chaturvedi.
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