The NCLAT has invalidated a ₹135 crore resolution plan as the de-notification process of the SEZ was found incomplete. The absence of GIDC’s consent rendered the proposed changes in land use unviable.
NCLAT Invalidates Resolution Plan Over Incomplete SEZ De-notification
The National Company Law Appellate Tribunal (NCLAT) has set aside a resolution plan worth ₹135 crores, citing the incompleteness of the Special Economic Zone (SEZ) de-notification process. The Tribunal noted that without the consent from the Gujarat Industrial Development Corporation (GIDC), any proposed change in land use remains invalid.
The NCLAT emphasized that the SEZ de-notification is critical for the approval of the resolution plan. GIDC's role is pivotal since it involves necessary clearances for land use modifications stipulated under relevant regulations.
The decision underscores the necessity for fully complying with regulatory requirements before submitting resolution plans. Practitioners should ensure that all necessary consents are in place, particularly from state authorities, to minimize risks of invalidation in similar cases.
Citations
- NCLAT Order (2026) NCLAT
