Important IBC Judgments by the NCLAT (9 July 2021)

  July 11, 2021

Chennai Bench

Valuation Report Only to Assist the CoC in Taking a Commercial Decision: Dr Vijay Radhakrishnan v. CS Bijoy P Pulipra, RP PVS Memorial Hospital Pvt Ltd

The Appellant was a consultant doctor at the Corporate Debtor hospital, and sought the rejection of the recommended resolution plan and of the valuation report by the RP.

The grievance was that as per the approved resolution plan, the employee doctors would have got 99.29% of their admitted claim, whereas consultant doctors would have only got 2.34% of their admitted claim, in spite of their similar job roles. He also alleged discrepancies in the valuation report of the approved resolution plan, and a variance of 15.62% with their valuation report. The Respondent placed reliance on the Maharashtra Seamless Limited v Padmanabhan Venkatesh and Ors., where the Supreme Court held that a valuation report is to assist the CoC to take a decision and there is a statutory mandate that the bid of the resolution applicant should match the liquidation value.

The Appellate Tribunal clarified that the difference in valuation report pointed out by the Appellant was not significant to call for fresh valuation. It held that the consultant doctors were not entitled to regular employee benefits and could not be equated to employee doctors; therefore there had been no discrimination. The Tribunal found no reasons to interfere and affirmed the impugned order.

~ By Manikanda Prabhu J

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