The appellate tribunal then laid down how such cases should be handled.
If the request for resolution plan or the resolution plan itself contains a clause dealing with the death of the applicant, that clause can be followed. If neither document says anything about it, the plan can be sent back to the CoC to decide whether it can still be implemented.
The heirs of the deceased applicant can also be considered but they do not get an automatic right to take over the plan.
The CoC would have to examine whether the heir has the necessary experience to run the business, is eligible under Section 29A of the IBC and is willing to implement the plan on the same terms.
In the present case, the NCLAT noted that there was already a settlement between…