2022 (1) TMI 1352 - SC - Insolvency and Bankruptcy

Seeking disposal of appeal - Resolution Plan approved by the Committee of Creditors has been finally upheld by this Court - it was brought to the notice of the Court that the appellant had preferred some appeal before the National Company Law Appellate Tribunal (NCLAT) and it was still pending at the relevant time - HELD THAT - This Court directed that the said appeal shall proceed on merits. Pursuant to that liberty, the concerned appeal has now been decided by the NCLAT vide impugned judgment. In our opinion, it was sufficient for the NCLAT to dispose of the appeal before it by restating the factual position noted while considering the Plan submitted for approval before the Committee of Creditors. The appeal needs to be disposed of by restating the said fact with liberty to the parties to pursue all contentions available to them in the proceedings pending at the relevant time, if any - It is stated that some arbitration proceedings were pending between the parties. If so, all contentions available to both sides be decided in the said proceedings on its own merits in accordance with law. Appeal disposed off.

Summary

Issues:
1. Upholding of Resolution Plan by the Supreme Court
2. Appeal pending before the National Company Law Appellate Tribunal (NCLAT)
3. Disputed claims of the Appellant as an Operational Creditor
4. Arbitration proceedings between the parties

Analysis:
1. The Supreme Court confirmed the Resolution Plan approved by the Committee of Creditors in a previous judgment titled "Kalpraj Dharamshi & Anr. vs. Kotak Investment Advisors Ltd. & Anr." The Court directed that an appeal pending before the NCLAT should proceed on merits, which has now been decided by the NCLAT. The NCLAT noted that the Appellant's claims as an Operational Creditor were disputed, with the liability subject to the outcome of ongoing proceedings.

2. The NCLAT was instructed by the Supreme Court to dispose of the appeal by restating the factual position regarding the Appellant's claims. The NCLAT was further directed to allow the parties to pursue all available contentions in the ongoing proceedings. The judgment emphasized the need for a fair resolution based on the facts presented and the legal rights of the parties involved.

3. The NCLAT's decision highlighted that the Appellant's claims were disputed and subject to arbitration proceedings. The judgment emphasized the importance of allowing both sides to present their contentions in the ongoing arbitration proceedings to ensure a fair and lawful resolution of the dispute. The Court stressed the need for a comprehensive and just determination of the issues at hand.

4. The judgment concluded by disposing of the civil appeal and any pending applications in accordance with the directions provided. It reiterated the importance of resolving all contentions between the parties, particularly in ongoing arbitration proceedings, to ensure a fair and lawful resolution. The decision aimed to uphold the principles of justice and legal rights in the resolution of the dispute.