Approved Resolution Plan Authorises CoC to Pursue Avoidance Applications: Suspended Director Has No Locus to Oppose RP Substitution

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The National Company Law Appellate Tribunal, Principal Bench, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating a company appeal, held that following approval of a resolution plan which specifically empowered the Committee of Creditors or its nominee to pursue avoidance applications, a suspended director could not maintain any objection to the substitution of the Resolution Professional. The Tribunal further held that such substitution did not require issuance of a separate notice or grant of an opportunity of hearing to the suspended director, as no vested right subsisted post approval of the resolution plan.

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