Priority in upfront payment to Operational Creditors cannot be termed unfair or inequitable.

The National Company Law Appellate Tribunal (NCLAT) has ruled that giving priority to Operational Creditors in upfront payments within a resolution plan is neither unfair nor inequitable. This decision addresses concerns raised by appellants who were Operational Creditors of Reliance Infratel Limited. The tribunal's order upholds the Adjudicating Authority's approval of a resolution plan, confirming the fairness of this payment structure.

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

Company Appeal (AT) (Insolvency) No.1134 of 2020

IN THE MATTER OF:

1. Pratap Technocrats (P) Ltd.B-21, Shakti BhagwanShivajiGodhara Colony, Khatipura Road, Jhotwara,
Jaipur – 302 012.

2. Pace Digitek Infra Private Limited (formerly Pace Power Systems Pvt. Ltd.)Plot No. V-12, Industrial Estate,Kumbalagodu, Bangalore – Mysore Highway, Bangalore – 560 074.

3. Lineage Power Pvt. Ltd.Plot NO. V-12, Industrial Estate,Kumbalgodu, Bangalore – Mysore Highway,Bangalore KA 560 074.

4. Frontline (NCR) Business Solutions Pvt. Ltd.B-48, Frontline House,Naraina Industrial Area, Phase II, New Delhi – 110028.

5. Veremax Technologies Services Ltd.156 Doshi Tower,Poonamallee High Road, Kilpauk,Chennai – 600 010.

6. Vertiv Energy Private LimitedPlot No. C-20, Road No. – 19,Wagle Industrial Estate,Thane (W), Mumbai, Maharashtra – 400 604.

7. PowerHF India Private Limited (Formerly Known As Shandong WeichatHuafeng Power India Private Limited)525, Tower A, DLF, Jasola, New Delhi – 110 025. …Appellants

Versus

1. Monitoring Committee of Reliance Infratel Limited H Block, 1st Floor,DhirubhaiAmbani Knowledge City, Navi Mumbai – 400 710.

2. Anish Niranjan Nanavaty,Resolution Professional for Relieance Infratel LimitedH Block, 1st Floor, DhirubhaiAmbani Knowledge City, Navi Mumbai – 400 710. …Respondents

Present: -

For Appellant: Ms. Ankita Singhania, Mr. Gautam Swarup, Ms. Gunjan Jindal, Mr. Kartikeya Jaiswal and Mr. RajatSinghal, Advocates.

For Respondents: Mr. Anoop Rawat, Mr. Vaijayant Paliwal, Mr. Saurav Panda, Ms. Charu Bansal, PrabhSimran Kaur, Ms. Ankita Mandal, Advocates for Respondent Nos. 1 and 2.

O R D E R

(Virtual Mode)

04.01.2021 Appellants are the ‘Operational Creditors’ of the Corporate Debtor - Reliance Infratel Limited. They are aggrieved of the impugned order dated 3rd December, 2020 passed by the Adjudicating Authority (National Company Law Tribunal, Court-I, Mumbai Bench) by virtue whereof Resolution Plan in respect of Corporate Debtor submitted by the Resolution Applicant Reliance Projects and Property Management Services Limited (formerly known as Reliance Digital Platform and Project Services Limited) came to be approved.

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