As per the terms of the resolution plan [clause 4.8(d)] approved by the NCLT on 06.10.2021, in the matter of Fedders Electric & Engineering Ltd, the avoidance application can be pursued by the lenders after the plan approval.
Hence, on an application filed before the NCLT, vide Order dated 06.07.2022, the substitution of RP with the lender bank i.e. SBI was permitted, in the pending avoidance applications.
Legal Provisions | Regulation 38(3) of the CIRP Regulations
As per Regulation 38(3) of the CIRP Regulations (amended w.e.f. 14-06-2022), a resolution plan shall provide for the manner in which proceedings in respect of avoidance transactions, if any, under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code, will be pursued after the approval of the resolution plan and the manner in which the proceeds, if any, from such proceedings shall be distributed.
Adv. Abhirup Das Gupta, Partner-HSA Advocates appeared for the Applicant.
