2019 (12) TMI 1442 - SCH - Insolvency and Bankruptcy

Invitation of fresh offers by the Resolution Professional within 21 days - It is submitted that on the basis of wrong information furnished to the learned counsel, it was stated before us that five offers were received within time and two offers were received thereafter - HELD THAT - As a matter of fact, only one offer was received within time. There were three Resolution Plans submitted by the resolution applicants and two Financial Offers received thereafter. The facts are placed on record. In the circumstances, the order dated 13-11-2019 insofar as the decision be taken by the CoC as to the offers which were received within the time limit within three weeks from today and be placed before this Court , is recalled - The above portion is recalled as only one offer was received within time - It is directed that fresh offers be invited within 30 days from today after due advertisement in accordance with the procedure prescribed for the purpose. Application disposed off.

Summary

Issues:
1. Fresh offers invitation based on previous court order.
2. Clarification on offers received within the specified time limit.
3. Recalling of the previous court order due to incorrect information.
4. Direction for inviting fresh offers within an extended timeline.
5. Evaluation of the new offers by the Committee of Creditors (CoC).

Analysis:
The Supreme Court, comprising Justices Arun Mishra and Sanjiv Khanna, had previously ordered the Resolution Professional to invite fresh offers within 21 days. However, during a subsequent hearing, it was revealed that there was confusion regarding the number of offers received within the stipulated time. Contrary to the initial information provided, only one offer was received within the specified period, along with three Resolution Plans and two Financial Offers submitted later. Consequently, the court decided to recall the part of the previous order concerning the decision-making process by the CoC based on the offers received within the time limit.

In light of the corrected information, the Supreme Court extended the timeline for inviting fresh offers to 30 days from the date of the judgment. This extension was granted in consideration of a prior decision in the case of Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta. The court directed that the new offers should be evaluated by the CoC within three weeks after the invitation process and subsequently presented to the court for further consideration.

As a result of the updated facts and the need for a fair evaluation process, the Supreme Court disposed of the relevant application (IA No. 177847 OF 2019). The judgment emphasized the importance of transparency and adherence to prescribed procedures in the resolution of the matter at hand, ensuring that all offers are duly considered within the extended timeframe provided by the court.