Resolution Applicant Whose Name Was Not Included In 'Prospective Resolution Applicants' List Cannot Be Substituted At Later Stage: NCLAT, Delhi

The NCLAT Delhi ruled that a resolution applicant included in the list of prospective resolution applicants cannot be substituted at a later stage without valid reasons. In the case of Mohit Minerals vs. Eurobond Industries, the appellate tribunal emphasized that the Committee of Creditors (CoC) must act within the bounds of the law and principles of natural justice. The CoC's decision to replace Mohit Minerals with another applicant without adequate justification was found arbitrary. The tribunal directed the CoC to reconsider its decision, ensuring transparency and fairness in the resolution process. This ruling reinforces the importance of due process in insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).