NCLAT judgment: Committee of creditors of educomp solutions ltd. V. Ebix Singapore pte ltd. & Anr
July 31, 2020
Committee of Creditors of Educomp Solutions Ltd. V. Ebix Singapore Pte. Ltd. & Anr: NCLAT Judgement Dated 29 July 2020
The Hon’ble National Company Law Appellate Tribunal (“NCLAT”) in its judgement dated 29 July 2020 has set aside an order of the National Company Law Tribunal, Principal Bench, New Delhi (“NCLT”) which had inter alia, allowed the withdrawal of a resolution plan on the grounds that an unwilling resolution applicant would not be able to effectively implement a resolution plan. This plan had been proposed by Ebix Singapore Pte. Ltd., was approved by the Committee of Creditors (“CoC”) of Educomp Solutions Ltd., and was pending approval of the NCLT.
The two main prongs of challenge before the NCLAT were on (a) the permissibility of withdrawal and (b) preliminary bar on the application allowed by the NCLT due to res judicata, which bars the re-litigation of the same matter between the same parties.