Adjudicating Authority Not Justified In Rejecting Plan Based On Valuation Report When No Objections Were Raised By Stakeholders: NCLAT

Adjudicating Authority Not Justified in Rejecting Plan Based on Valuation Report When No Objections to Valuation Were Raised by Any Stakeholders: NCLAT The National Company Law Appellate Tribunal (NCLAT) has held that an Adjudicating Authority (NCLT) is not justified in rejecting a resolution plan solely based on a valuation report if no objections to that valuation were raised by any stakeholders during the Corporate Insolvency Resolution Process (CIRP). This ruling emphasizes that the NCLT's role is to ensure the plan's compliance with IBC provisions, and it should not second-guess the commercial wisdom of the Committee of Creditors (CoC) or the valuation when no stakeholder has challenged it.