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TMI Blog2019 (1) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... idesh Vaish and Mr. Lalit Mohan, Advocates JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. The Respondent- 'Invex Pvt. Ltd.'- ('Financial Creditor') filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code' for short) for initiation of 'Corporate Insolvency Resolution Process' against 'Dome-Bell Electronics India Pvt. Ltd.'- ('Corporate Debtor'). 2. 'M/s. Nityank Infrapower & Multiventures Private Limited'- Appellant moved an intervention application impleading 'M/s. Invex Private Limited'- as 'Financial Creditor' and 'Dome-Bell Electronics India Private Limited' as 'Corporate Debtor' (1st and 2nd Respondent respectively). The said Miscellaneous Application has been filed under Section 7 of the 'I&B Code' f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 'Hindustan Oil' issued nonconvertible debentures having face value of Rs. 10 Lakhs each at par aggregating to Rs. 1626 Crores by the debenture trustee in favour of the Applicant- 'Nityank Infrapower & Multiventures Pvt. Ltd. The Applicant-'Nityank Infrapower & Multiventures Pvt. Ltd.' has become the beneficial owner of the said debentures within the meaning of 'Debenture Trust Deed'. It was agreed that the 'Hindustan Oil' will be liable to pay default interest at the rate of 18% which have not been paid on the respective dates. In order to secure the payment obligation, 'M/s. Dome-Bell Electronics India Private Limited'- ('Corporate Debtor') executed a corporate guarantee deed dated 30th December, 2016 in favour of the Applicant- 'Nityan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yank Infrapower & Multiventures Pvt. Ltd.' was undeniable. Further, vide an order dated 27th July, 2017, the National Company Law Tribunal approved a scheme of arrangement for amalgamation of 'Videocon D2H' and 'M/s. Dish TV India Ltd.'. The said scheme provides for allotment of certain number of equity shares of the Dish TV to the shareholders of the erstwhile 'Videocon D2' limited. Subsequent to the execution of said transaction document, the 'Hindustan Oil' committed defaults in its payment obligation. The details of the impugned defaults have also been elaborated in the Misc. Application. Due to occurrence of events of defaults notices were issued and other correspondence was made. Despite reminders the 'Hindustan Oil' as well as the 'M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -'Nityank Infrapower & Multiventures Pvt. Ltd.' had called upon 'M/s. Dome-Bell Electronics India Private Limited'- ('Corporate Debtor') to pay outstanding amount of Rs. 2035,83,00,000/-. 6. The allegation was that although the Company was fully conscious of its obligation towards the Applicant- 'Nityank Infrapower & Multiventures Pvt. Ltd.' under the said corporate guarantee it had fraudulently entered into the impugned transaction. According to the Applicant, it was a sham transaction for the purpose of delaying Applicant's claim against 'M/s. Dome-Bell Electronics India Private Limited'- ('Corporate Debtor') under the said corporate guarantee. An apprehension has been expressed that 'M/s. Dome-Bell Electronics India Private Limited'- (' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity has rightly rejected the plea as the law is settled law is that only after being admitted as a party to the litigation an Intervener can get entitlement for demand of a copy of a pleading. It is also a settled law that the 'Corporate Insolvency Resolution Process' is not a litigation as held in "Binani Industries Limited Vs. Bank of Baroda & Anr. - Company Appeal (AT) (Insolvency) No. 82 of 2018 etc.". 9. Therefore, supply of copy of pleading to an intervenor does not arise. This apart, in fact no affidavit or pleading is filed before the Adjudicating Authority but the requisite form such as, (Form-1) is filed for application under Section 7 or (Form-5) for filing application under Section 9. In the said format the applicants only prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,38,400 equity shares in 'Videocon D2H Limited' and also executed a corporate guarantee by way of further security. He has referred to order dated 27th July, 2017 passed by the National Company Law Tribunal, Mumbai, sanctioning the Scheme of Arrangement for Amalgamation of 'Videocon D2H Ltd.' into and with 'Dish TV India Ltd.' Due to defaults in repayment of the debentures, the debenture trustee sent a demand notice to 'Hindustan Oil Ventures Limited' on 20th December, 2017. All those facts were brought on record but the Appellant has failed to suggest that an application under Section 7 was filed by 'Invex Private Limited' fraudulently or with malicious intent, for the purpose of rejecting the application or for imposing penalty under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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