NCLAT issues rulings on property inspection and resolution plan valuations

The National Company Law Appellate Tribunal (NCLAT) has issued two significant rulings regarding insolvency and liquidation proceedings in India.

In one matter, the New Delhi Bench clarified that orders directing the inspection and measurement of property intended for a corporate debtor’s liquidation estate do not prejudice disputed ownership or possessory rights. The tribunal upheld a Mumbai NCLT order allowing a liquidator to inspect and measure a property in Mumbai to identify and segregate assets belonging to the debtor, despite ownership disputes raised by Middle East Management Services LLP.

In a separate case involving a hospitality MSME, the NCLAT upheld an approved resolution plan and rejected a plea from a suspended promoter for a fresh valuation of assets. The tribunal ruled that valuations conducted by IBBI-registered valuers and accepted by the Committee of Creditors (CoC) cannot be reconsidered simply due to allegations of undervaluation. The court emphasized that the commercial wisdom of the CoC is not subject to judicial review in such matters.