NCLAT dismisses Edelweiss pleas challenging Synergy resolution plan

"In absence of any merit, we dismiss these appeals," the two-member NCLAT bench, headed by chairperson Justice SJ Mukhpadhaya, said in the order. Rejecting Edelweiss's objections to the merger proposal in the resolution plan, the bench observed, "The arguments of the appellant (Edelweiss) that merger and amalgamation of the companies cannot be proposed in the resolution plan or such proposal is violative of clause (e) of sub-section (2) of Section (30) is fit to be rejected". Edelweiss' counsel had argued that the Insolvency and Bankruptcy Code (IBC) did not contemplate/permit/provide for effecting amalgamation before implementation of the resolution plan especially in case such amalgamation has an effect of extinguishment of the corporate debtor itself. The two-member NCLAT bench, in its order, said that once a plan is approved, one may argue that in terms of the provision of the Companies Act, a formal order of amalgamation was required, but no such argument can be advanced at the time of the approval of the resolution plan which merely proposes merger. It also found no problem with the debt-assigning matter by SCL to MFL. Dailyhunthttp://www.equestrianbookfair.com/UserProfile/tabid/57/userId/1839/Default.aspx