2019 (11) TMI 1456 - HC - Insolvency and Bankruptcy

Deposit of penalty amount - HELD THAT - Issue notice. Mr. Puneet Jain accepts notice on behalf of respondent No. 1, while Mr. Biswajit Dubey accepts notice on behalf of respondent No.2. Renotify the matter on 25.11.2019.

Summary

Issues:
1. Discharge of caveat appearance by respondent No. 1.
2. Deposit of penalty amount by the petitioner.
3. Notice issuance to respondent No. 1 and respondent No. 2.
4. Instructions sought from respondent No. 2 regarding deposit in Corporate Depositor's account.
5. Resolution approval by respondent No. 2/COC creditors.
6. Next hearing date set.
7. Liberty granted to petitioner to present the order before COC of M/s K.S.K. Mahanadi Power Company Limited.

Analysis:

1. The judgment begins by noting the appearance of Mr. Puneet Jain on behalf of respondent No. 1, leading to the discharge of the caveat. This procedural step signifies the respondent's formal entry into the legal proceedings.

2. The petitioner, represented by Mr. Sandeep Sethi, agrees to deposit a specific penalty amount with the court registry within two days, subject to certain conditions. This deposit is to be invested in an interest-bearing fixed deposit, showcasing compliance with the imposed penalty.

3. Notice is issued to both respondent No. 1 and respondent No. 2, with their respective counsels accepting the same. This step ensures that all parties are informed and given an opportunity to participate in the legal proceedings.

4. Respondent No. 2/COC is directed to determine its willingness to deposit a substantial amount in the Corporate Depositor's account, specifically linked to M/s Bhushan Power and Steel Limited. This instruction aligns with a resolution passed by respondent No. 2/COC with a high creditor approval rate.

5. The judgment highlights the significant creditor approval rate of 96.53% for the resolution, emphasizing the creditors' support for the decision. This detail is crucial in understanding the context and legitimacy of the actions taken.

6. The matter is scheduled for a future hearing on a specified date, ensuring the continuation of the legal process and providing clarity on the timeline for further actions.

7. Finally, the petitioner is granted liberty to present the order before the COC of M/s K.S.K. Mahanadi Power Company Limited, allowing the COC to act in accordance with the law based on the information provided. This provision offers flexibility and ensures transparency in the decision-making process.

This comprehensive analysis outlines the key aspects and implications of the judgment, covering the discharge of caveat appearance, penalty deposit, notice issuance, resolution approval, future hearing date, and the liberty granted to the petitioner for further actions.