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TMI Blog2020 (2) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... reditors', without its permission, the 'Resolution Professional' was not competent to entertain more applications after three months to include one or other person as 'Financial Creditor'. Further, once a decision was taken by the 'Committee of Creditors' to call for a meeting for removal of Mr. Koteswara Rao Karuchola as an 'Resolution Professional', it was improper for him to include Mahal Hotel Private Limited as 'Financial Creditor' of the Member of the 'Committee of Creditors'. Further, money laundering case having been initiated against Mahal Hotel Private Limited, the said Hotel cannot be allowed to be the Member of the 'Committee of Creditors' - The Adjudicating Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after hearing the parties including the 'Resolution Professional' while holding that Mahal Hotel Private Limited was not entitled for claiming compound interest, passed the following directions by impugned order dated 4th October, 2018:- 27. In the result, Application is disposed off by giving direction to Resolution Professional to revise the claim submitted by R-3/M/s Mahal Hotels Private Limited and its associates by calculating interest on the outstanding balance @ 24% p.a. and then assess the percentage of voting share of Respondent No. 3 and its associate companies. 3. The Appellant - ARCIL has challenged the impugned order on the ground that the Mahal Hotel Private Limited is not a 'Financial Creditor' and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. (iii) An updated list of Members of 'Committee of Creditors' was circulated on 7th July, 2018 by the 'Resolution Professional' in which also the Mahal Hotel Private Limited was not shown as a Member. The 'Committee of Creditors' directed the 'Resolution Professional' on 7th July, 2018 to convene a meeting for change of 'Resolution Professional'. On 11th July, 2018, 'Resolution Professional' circulated an email annexing therewith updated list of Members of the 'Committee of Creditors' by including Mahal Hotel Private Limited as 'Financial Creditor'. (iv) According to the Appellant, the aforesaid inclusion of Mahal Hotel Private Limited as 'Financial Creditor' w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Professional' on 11th July, 2018. It was submitted that after three months, it was not open to 'Resolution Professional' to include the new 'Financial Creditor' and the same was done with an intent to defeat the purpose of I B Code. (vii) It was further submitted that Mahal Hotel Private Limited is involved in money laundering, of which the transactions is also stated to be one such, as per Enforcement Directorate under Prevention of Money Laundering Act, 2002. 6. Initially, the Mahal Hotel Private Limited, who is also Appellant in Company Appeal (AT) (Insolvency) No. 718 of 2018 contested the Appeal preferred by ARCIL. It was submitted that the Adjudicating Authority (National Company Law Tribunal), Hyderabad Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hotel Private Limited is not pressing the Company Appeal (AT) (Insolvency) No. 718 of 2018. 9. From the discussions as made above, while we hold that there is a dispute as to whether Mahal Hotel Private Limited comes within the meaning of 'Financial Creditor' or not, we hold that after constitution of the 'Committee of Creditors', without its permission, the 'Resolution Professional' was not competent to entertain more applications after three months to include one or other person as 'Financial Creditor'. Further, once a decision was taken by the 'Committee of Creditors' to call for a meeting for removal of Mr. Koteswara Rao Karuchola as an 'Resolution Professional', it was improper for him ..... X X X X Extracts X X X X X X X X Extracts X X X X
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