2022 (7) TMI 773 - AT - Insolvency and Bankruptcy

Maintainability of appeal - time limitation - adoption of Swiss Challenge Method - maximisation of value - HELD THAT - This Tribunal without traversing upon the merits of the matter not delving deep into the same and also not expressing any opinion, one way or the other, simplicter, on the aspect of Limitation comes to a clear cut conclusion that the Instant Company Appeal preferred by the Appellant before the Office of the Registry on 10.06.2022 is clearly barred by limitation. The invocation of the Hon ble Supreme Court Suo Motu Writ Petition (C) NO. 3 OF 2020 dated 10.01.2022 2022 (1) TMI 385 - SC ORDER will not be of any assistance to the Appellant, as opined by this Tribunal. Appeal dismissed.

Summary

Issues involved:
1. Interpretation of voting results and adoption of Swiss Challenge Method for maximizing value in insolvency proceedings.
2. Determination of the period of limitation for filing an appeal.

Analysis:

1. Interpretation of voting results and adoption of Swiss Challenge Method:
The appeal arose from an order passed by the Adjudicating Authority regarding the adoption of the Swiss Challenge Method in insolvency proceedings. The Adjudicating Authority had directed the Liquidator to fix 'Proposal A' as the base price and proceed with the Swiss Challenge Method to maximize the value of the Corporate Debtor. The voting results showed varying percentages of support for different proposals, with 'Proposal A' being close to the liquidation value. The Liquidator had received expressions of interest from buyers post-timeline, which were not considered due to the prescribed timeline. The Adjudicating Authority relied on the Supreme Court's decision in Ravi Development vs. Shree Krishna Prathisan to support the adoption of the Swiss Challenge Method. The Tribunal upheld the Adjudicating Authority's decision, allowing the Liquidator to proceed with the Swiss Challenge Method, including post-timeline proposals, for value maximization.

2. Determination of the period of limitation for filing an appeal:
The Appellant contended that the appeal was within the period of limitation, citing an extension granted by the Supreme Court in a suo motu Writ Petition. However, the Respondent argued that the appeal was barred by limitation as the prescribed time for filing had expired before the appeal was lodged. The Tribunal, without delving into the merits of the case, concluded that the appeal was indeed filed after the expiration of the limitation period, rejecting the Appellant's argument regarding the Supreme Court's order. Consequently, the Tribunal dismissed the Instant Company Appeal (AT)(CH)(Ins) No.238/2022 as being time-barred, without imposing any costs.

In conclusion, the Tribunal's judgment addressed the interpretation of voting results and the adoption of the Swiss Challenge Method for value maximization in insolvency proceedings. Additionally, the judgment clarified the determination of the period of limitation for filing an appeal, ultimately dismissing the appeal as time-barred.