Can Resolution Plan be modified by way of subsequent order of adjudicating authority relating to interconnected matter of Resolution Plan?

SREI Multiple Asset Investment Trust Vision India Fund (Appellant) preferred an appeal against decision of Hon'ble National Company Law Appellate Tribunal (NCLAT) which set-aside order of Hon'ble NCLT (National Company Law Tribunal) Hyderabad Bench which have effect of modification/alteration of approved resolution Plan of the Corporate Debtor Deccan Chronicle Holdings Ltd. (DCHL).

- Surendra Rahalkar

Facts of the case:-

i. Appellant is the Successful Resolution applicant (SRA) of the Corporate Debtor (CD), whose Resolution Plan was approved by the Committee of Creditors (CoC) of the Corporate Debtor with 81.39% voting share which was conditionally approved (subject to condition in reference to the rights over the brand name/trademarks of the Corporate Debtor] by the Hon'ble NCLT by order dated 3rd June 2019.

ii. Corporate Debtor has been into the business of printing, publication, and sale of daily newspapers under the trade names, "Deccan Chronicle" (English) and "Andhra Bhoomi" (Telugu) (hereinafter referred to as the "Trademarks").

iii. There was pending application with respect to the brand name of the Corporate Debtor, application I.A. No.155 of 2018 seeking a declaration by the Corporate Debtor that it is the owner of the trademarks ("Deccan Chronicle" and "Andhra Bhoomi") and the said trademarks be treated as part of the assets of the Corporate Debtor.

iv. On 14th August 2019, Hon'ble NCLT held that that the Resolution Professional has established that it is the Corporate Debtor/DCHL who has an exclusive right to use the trademarks "Deccan Chronicle" and "Andhra Bhoomi" and also made a declaration that the trademarks ("Deccan Chronicle" and "Andhra Bhoomi") belong to the Corporate Debtor/DCHL).

Deccan Chronicle Marketeers (Respondent) in the present case challenged order of Hon'ble NCLT Order dated 14th August 2019 before Hon'ble National Company Law Appellate Tribunal [NCLAT).

Hon'ble NCLAT Set-aside order of Hon'ble NCLT on following grounds: