9911796707
TMI Blog2020 (6) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... decision on their terms to Committee of Creditors especially when the suspended Board of Directors has no right to vote on the Resolution Plan. Impugned order upheld - appeal dismissed. - COMPANY APPEAL (AT) (INSOLVENCY) NOS. 02 And 09 OF 2019 - - - Dated:- 23-1-2020 - Venugopal M., Judicial Member Balvinder Singh And Dr. Ashok Kumar Mishra, Technical Member For the Appellant : Mansumyer Singh, Adv. For the Respondent : Ms. Nishi Chaudhary, Adv. JUDGMENT BALVINDER SINGH, TECHNICAL MEMBER. 1. The present appeal has been preferred by the appellant under section 61 of the Insolvency Bankruptcy Code, 2016 (in short 'I B Code')against the impugned orders dated 1-11-2018 and 30-11-2018 passed by the Adjudicating Authority, National Company Law Tribunal, Chandigarh Bench, Chandigarh Bench (in short 'Tribunal') rejecting the resolution plan submitted by the appellant with the following prayer: (a) Set aside the impugned orders dated 1-11-2018 and 30-11-2018 passed by the Hon'ble Adjudicating Authority. (b) Approve the Resolution Plan of the Appellant/Resolution Applicant which will be binding on the creditors, members and ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il dated 10-8-2018, the applicant was never informed of any of the decision of COC/RP. 4. Resolution Professional in reply stated that no Resolution Plan was approved in the COC, therefore, the application under section 33(1)(b)(i), (ii) and (iii) and 33(2) of I B Code for liquidation of the Corporate Debtor. Resolution Professional further stated that MR. Vikramjit Singh, the suspended director of Corporate Debtor had been operating certain bank accounts of appellant as authorised signatory thereby making him a person in management or control of the Resolution Application. Therefore, the appellant was an extended arm of the Corporate Debtor. Resolution Professional further stated that an independent agency has pointed out that appellant was having many doubtful transactions with corporate debtor such as transfer of assets, sale of goods and rental income from the Resolution Applicant. Appellant was also conducting business in the same brand name as that of Corporate Debtor. Information was sought from the appellant but he did not provide the same inspite of repeated requests. Resolution Applicant vide email dated 28-5-2018 that Mr. Vikramjit Singh, the director of Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired. The application is found to be absolutely without merits and the same is d ismissed. 6. The matter was again taken up on 30-11-2018 by the Adjudicating Authority. After hearing the parties the Adjudicating Authority ordered the liquidation of the corporate debtor, Kochar Overseas Pvt Ltd and appointed Mr. Ashish Aggarwal, as Liquidator to take steps as per law. 7. Being aggrieved by the impugned orders the appellant has preferred this appeal and seeking furnishing of a plan with modification. 8. Learned counsel for the appellant argued that the appellant is not ineligible under section 29A of the Insolvency and Bankruptcy Code, 2016. Learned counsel further argued that the appellant had intimated the Resolution Professional vide letter dated 28-5-2018 (Page 284 of appeal) that the business transaction with the Corporate Debtor does not mean that the appellant is the related party because the transactions were at the prevailing price. Learned counsel for the appellant further argued that Mr. Vikramjit Singh was temporarily authorised by the appellant to sign the cheques and the appellant had been out of city for a particular period time and when the appellant retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor and resolution applicant which are transfer of assets, sales of goods and rental income from resolution applicant and the appellant and the corporate debtor were carrying out their business in the same brand name and the appellant and the corporate debtor are hand in glove. Learned counsel also drew the attention of the Tribunal to section 29A of I B Code, 2016. Learned counsel argued that the financial creditor is well within the provisions of I B Code to reject the claim in terms of section 29 A of I B Code. Learned counsel for the financial creditor further argued that the resolution plan of the appellant was rejected in 7th Meeting of Committee of Creditors by 100% voting. 12. Learned counsel for the Respondent further argued that the appellant has vested interest in Corporate Debtor which is clear from Resolution Plan submitted by appellant whereby the appellant is asking the COC to release the personal guarantees and collateral securities of the promoters and guarantors and vacate the charge from all the collateral securities of promoters and guarantors. 13. Learned counsel for the Respondent further argued that the appellant vide email dated 28-5-2018 admitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the appellant is also using the brand name 'Double Bull Basmati' which the brand name of the corporate debtor. This also establishes that the appellant is related party and is not eligible as per section 29A of the Insolvency Bankruptcy Code, 2016. 20. We note that the Resolution Plan has been duly considered by the Committee of Creditors. In their commercial wisdom, COC have decided not to accept the Resolution Plan with conditions contained therein. We have also noted that the process cannot be kept pending endlessly that revision of a plan after plan may be considered by the Committee of Creditors without considering the mandatory period within which the insolvency resolution is completed as per the provisions of Insolvency Bankruptcy Code. Even though the suspended Board of Directors has a right to attend the meeting and may offer any suggestion but they cannot force their decision on their terms to Committee of Creditors especially when the suspended Board of Directors has no right to vote on the Resolution Plan. We also note that Committee of Creditors has rejected the resolution plan with 100% voting. 21. In view of the aforegoing discussions and observa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
