9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 1173 - AT - Insolvency and BankruptcySeeking issuance of fresh Form G - Resolution Applicant has submitted his revised plan - Resolution Professional in the Information Memorandum has also mentioned about dispute regarding the property - HELD THAT - The Adjudicating Authority has taken in consideration the fact that properties shall come to the kitty of the Corporate Debtor, whose value is much more than the entire plan value submitted by the Resolution Applicant, hence, order was issued for issuance of Form G - the observation of the Adjudicating Authority as made in Para 19, 20 and 21 of the impugned order, agreed upon, which was sufficient reason for issuance of fresh Form G. However, we are of the view that some time ought to have been fixed by the Adjudicating Authority for completion of the entire process - while affirming order of the Adjudicating Authority, further direction is given that entire process including consideration of Resolution Plan shall be completed within a period of three months from today. The present is not a case where the Adjudicating Authority has directed for any valuation of the assets of the Corporate Debtor. Present is a case where during the CIRP process under the orders of the High Court of Delhi properties worth value of approx. Rs.3 Crores have been added to the assets of the Corporate Debtor on basis of which the Adjudicating Authority took the view that fresh Form G should be issued so that interested Resolution Applicants may know that the value of the Corporate Debtor has increased. It goes without saying that the Appellant shall be entitled to submit his Expression of Interest in response to Form G issued by the Resolution Professional - appeal disposed off.
Issues involved:
Delay condonation application for filing appeal, Direction for issuance of fresh Form G, Rejection of present Resolution Plan, Fresh valuation of Corporate Debtor's properties, Completion of entire process within three months, Committee of Creditors' contention on revaluation of assets, Application of legal precedent on valuation of assets in insolvency cases. The judgment addressed an application for condonation of delay in filing the appeal, granting the condonation due to valid reasons provided by the Appellant. The main issue revolved around the direction given by the Adjudicating Authority for the issuance of a fresh Form G, following the addition of properties to the assets of the Corporate Debtor. The Adjudicating Authority's decision was based on the need to inform prospective Resolution Applicants of the increased value of the Corporate Debtor due to the newly added properties. The Appellant challenged the Adjudicating Authority's order, arguing that the Resolution Plan had already addressed the property dispute, and there was no need for the issuance of a fresh Form G. However, the Resolution Professional clarified that the properties were not yet in possession of the Corporate Debtor and would only be acquired after the sale deed execution. The Tribunal agreed with the Adjudicating Authority's reasoning for issuing the fresh Form G, as the added property value exceeded the plan value submitted by the Resolution Applicant. A direction was issued by the Tribunal to complete the entire process, including the consideration of the Resolution Plan, within three months. The Committee of Creditors contested the revaluation of assets ordered by the Adjudicating Authority, citing a legal precedent. However, the Tribunal differentiated the present case, emphasizing that the addition of property value necessitated the issuance of a fresh Form G to attract higher bids and maximize the value for the Corporate Debtor. The Tribunal rejected the Committee of Creditors' objection to the issuance of a fresh Form G, emphasizing the importance of reflecting the increased asset value to benefit the Corporate Debtor. The judgment concluded by disposing of the appeal, allowing the Appellant to submit an Expression of Interest in response to the Form G issued by the Resolution Professional.
|
