Dentons Link Legal acted for the Resolution Professional of ACIL Limited to secure approval from the NCLT for the Resolution Plan proposed by Ramakrishna Forgings Limited and approved by the COC by a majority of 88.56%. (NCLT Plan Approval Order of ACIL Limited)
ACIL Limited is an automotive components manufacturing company which has been undergoing corporate insolvency resolution process since 2018. A team of Partner Abhishek Sharma, Senior Associate Raghav Mittal and Associate Kritya Sinha from Dentons Link Legal advised and represented the Resolution Professional in the matter.
In November earlier this year, the Supreme Court had lifted the stay on Plan Approval Application pending before the NCLT, observing that the NCLT had no jurisdiction to order revaluation of the assets of ACIL Limited, questioning the commercial wisdom of the COC. The Supreme Court observed that "both the NCLT and NCLAT erred to fully recognise that under the resolution plan, the corporate debtor was set to be revived and not liquidated."
The Supreme Court also observed that, "The moot question involved is the extent of the jurisdiction and powers of the Adjudicating Authority to go on the issue of revaluation in the background of the admitted and undisputed factual position that no objection was raised by any quarter with regard to any deficiency/irregularity, either by the RP or the appellant or the CoC, in finally approving the Resolution Plan which was sent to the Adjudicating Authority-NCLT for approval."
Following the Supreme Court ruling, the NCLT heard the Plan Approval Application at length and passed orders approving the Resolution Plan on 22nd December 2023.