The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently held that the failure to communicate the individual score and ranking of a resolution applicant does not invalidate the corporate insolvency resolution process.
The Tribunal ruled that the Consortium of Govindrao Sable’s objection to the non disclosure of its scorecard did not affect the approval of the successful resolution plan for KGS Sugar and Infra Corporation Private Limited.
The Insolvency and Bankruptcy Code does not require the Committee of Creditors to share scorecards, and the requirement to communicate individual scores and rankings arose only from the CoC’s own evaluation framework. Against this backdrop, the appellate tribunal found that the alleged…