2021 (10) TMI 1288 - SC - Insolvency and Bankruptcy

Seeking a take over by the Resolution Professional/R-2 over the control and management of the affairs of Corporate Debtor from the 3rd respondent - HELD THAT - The prayer was made because the appeal was pending and if the matter has been taken up for final hearing, that issue in an appropriate manner can be dealt with in the appeal itself - Application disposed off. Scope of the scrutiny in the present proceedings - impleadment of Bank of Maharashtra - HELD THAT - The caveat to this expressed by learned counsels for respondents Nos. 1 and 3 is that it would open a pandora s box and in any case the benchmark of consent of the creditors today is of not 75% but 66% in terms of Section 30, sub- Section (iv) of the Insolvency and Bankruptcy Code, 2016 - learned counsels for respondents Nos. 1 and 3 sought to contend that no creditor de hors the consortium could have invoked the bank guarantee and this is not in the nature of guarantee invoked which is to operate as a bar in terms of Section 29A(h) of IBC. It is also their say that RBL bank was not a part of the consortium and had actually given up their security. On impleadment of the Bank of Maharashtra as respondent No. 11, it is issued notice to the said respondent returnable on 07.11.2021 - List as part-heard for directions in miscellaneous matters on 09.11.2021.

Issues:
1. Application for permission to file additional documents, exemption from filing affidavit(s), and application under order LV.
2. Application for early hearing of appeal/directions.
3. Application for impleadment.
4. Application for directions filed by the State Bank of India.
5. Scrutiny of conditional approval granted by Bank of Maharashtra.
6. Impleadment of Bank of Maharashtra as respondent No. 11.
7. Disqualification of respondent No. 3.
8. Support for the resolution by respondent No. 10/Punjab National Bank.

1. Application for permission to file additional documents, exemption from filing affidavit(s), and application under order LV:
The applications for permission to file additional documents, exemption from filing affidavit(s), and application under order LV are allowed.

2. Application for early hearing of appeal/directions:
The applications for early hearing of appeal/directions are disposed of as the appeal is taken up for hearing.

3. Application for impleadment:
An application for impleadment has been filed by the operational creditor, M/s Pradeep Colonisers & Suppliers Pvt. Ltd., which is allowed as the appellant has no objection to the impleadment.

4. Application for directions filed by the State Bank of India:
The State Bank of India filed an application seeking a takeover by the Resolution Professional over the control and management of the affairs of the Corporate Debtor from the 3rd respondent. The application also requested a forensic audit, which was addressed as the matter was taken up for final hearing.

5. Scrutiny of conditional approval granted by Bank of Maharashtra:
During the hearing, it was noted that Bank of Maharashtra had granted conditional approval, raising questions about the approval benchmark. It was suggested to implead Bank of Maharashtra as respondent No. 11 to obtain their view on the matter.

6. Impleadment of Bank of Maharashtra as respondent No. 11:
In light of the discussions, Bank of Maharashtra was impleaded as respondent No. 11, with a notice issued to them returnable on a specified date.

7. Disqualification of respondent No. 3:
There were discussions regarding the disqualification of respondent No. 3, with arguments presented by both sides regarding the invocation of guarantees and demands made by creditors.

8. Support for the resolution by respondent No. 10/Punjab National Bank:
Respondent No. 10/Punjab National Bank expressed support for the resolution.

In conclusion, the judgment addressed various applications and issues related to impleadment, directions, conditional approvals, disqualification, and support for the resolution. The Court allowed certain applications, disposed of others, and issued notices for further proceedings, ensuring a comprehensive examination of the legal aspects involved in the case.

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