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TMI Blog2020 (9) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 11 of the NCLT Rules, 2016 being I.A.(IB) No. ........ /CTB/2020 in T.P. No. 203/CTB/2019 (arising out of CP(IB) No. 1411/MB/2018, transferred from Mumbai Bench) challenging the rejection of the resolution plan of the applicant by the CoC declaring that the applicant is not eligible u/s. 29A of the 'I & B Code. The Corporate Debtor, SALASAR STEEL AND POWER LTD., is undergoing Corporate Insolvency Resolution Process (In short, 'CIRP') vide order dated 27/09/2019 passed by this Adjudicating Authority, Cuttack Bench. 2. The urgency set out in the application has been found satisfactory. As lockdown was declared due to pandemic COVID-19, the normal operation of NCLT, Cuttack Bench is yet to be resumed; the unnumbered applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n't exist. But RP didn't place the Plan before CoC & also denied opportunity to Applicant & held it ineligible u/s. 29A, without giving reasons to explanation provided by Applicant, just a few minutes before declaration of 2 Successful RAs for Negotiation, out of total 3 RAs. Hence, present application. 5. Heard both sides. Perused the records, defence note and the copy of minutes forwarded to us at the time of hearing. 6. Ld. Counsel for the applicant Mr. Saswat K. Acharya, submits that the ineligibility u/s 29A was taken by the RP and not the CoC and that RP has no power to reject or approve the resolution plan other than to place it before the CoC for their consideration. He also submits that two plans were submitted to the RP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he disqualification of the applicant under section 29A in the meeting held on 18/06/2020 and rejected their application being satisfied that the applicant is ineligible under section 29A(b) as well as 29A(j). He further submitted that the applicant's attempt is to disrupt the CIRP of the Corporate Debtor, as earlier also an application was preferred wherein this Hon'ble Tribunal was pleased to provide an opportunity to another applicant to submit a resolution plan, which was ultimately not submitted. This application again would derail the CIRP process. To stress his submission he referred to the copy of email dated 18.06.20202 and the copy of minutes dated 18.06.2020. The copy of the email is reproduced here under for a better unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the connected parties, it has been identified that:-A willful loan default of INR 84.29 crore and INR 12.42 crore was identified for Ind Synergy Limited in which Mr. Shrawan Kumar Agarwal is a Director. Ind Synergy Limited has been reported by Indian Overseas Bank for a default of INR 84.29 crore for the calendar year 2018 and 2019 and quarter ending 31st March, 2020. Mr. Shrawan Kumar Agarwal is also a Director in the resolution applicant company. As per Sec 29A clause (b) read with clause (j) a Resolution Applicant is not eligible if the Resolution Applicant or any of its connected parties are a Willful Defaulter as per the RBI Guidelines. Therefore, basis the information available online, the Resolution Applicant is not eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the applicant referred a judgment of Hon'ble Supreme Court in Arcelor Mittal (2019) 2 SCC 1, Para 80 where in it was held that RP isn't empowered to take any decision, but to place the Plans before CoC to approve it. Also relied upon Rural Electrification Corp. vs. Ferro Alloys Corp.,CP(IB)251/KB/2017, order 8.3.2018, an order of this AA wherein it was observed that rejection or approval of a resolution plan is the right of the CoC and Resolution Professional cannot reject any plan without a decision of committee of creditors. The above said proposition held in the Arcelor Mittal case or the observation of this AA in Rural Electrification case not at all help the applicant herein, since, the RP has submitted that he has placed t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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