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TMI Blog2019 (6) TMI 1552X X X X Extracts X X X X X X X X Extracts X X X X ..... his, the successful Resolution Applicant has also filed sanction letter from HDFC Bank to finance ₹ 10 Crores for infusing funds into the Corporate Debtor towards working capital. The total money that this Resolution Applicant proposed to invest in this company is around ₹ 18 Crores, out of which, ₹ 9.52 Crores to pay to various stake holders within 15 days and remaining money to be invested as working capital. In respect to this unsuccessful bidder Plan is concerned, it's a plan not supported by any material reflecting it has cash or security supported to make payments to the stake holders or to invest working capital into the company, whereby this Bench hereby partly allowed the MA filed by the RP by approving the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resolution Applicant (M/s. Arabella Onco Care Private Limited), whose plan has been rejected by the CoC, has attained only 49 marks. 3. Regarding the plan given by the successful Resolution Applicant, the RP says it has come out to pay Rs. 9.52 Crores to all the stake holders whereas the unsuccessful Resolution Applicant namely M/s. Arabella Onco Care Private Limited, has come forward to pay Rs. 9.95 Crores. 4. While considering these two plans for approval, the CoC has approved the Resolution Plan because the successful Resolution Applicant has assured payment to the stakeholders within fifteen days, to clear statutory dues within 96 hours after the approval of the Plan by simultaneously showing proof of source of funds. The Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f funds. 8. As to successful Resolution Applicant company, it was incorporated eleven years before, today it has turnover of around ₹ 100 Crores whereas this unsuccessful bidder was floated in the month of Nov' 18 with ₹ 1 Lac capital. Moreover, this unsuccessful bidder has not placed any material showing that this company has been doing business and having turnover matching to the turnover of the successful bidder. In fact the only support that it has been canvassed by this unsuccessful bidder is that this successful bidder floated by group of concerns having good turnover. 9. It is pertinent to mention that mere words will not work out in commercial transactions. Any prudent businessman or banker will see what is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, since this unsuccessful bidder mentioned that it would pay the Operational Creditors within 150 days, i.e., after paying Financial Creditors, is not tenable under the law prescribed by the code. 14. Moreover, CoC is the competent body under the Code to determine which plan is beneficial to the Corporate Debtor and to the CoC. 15. On examining the plan approved by the CoC, we are of the considered view that CoC has fairly dealt with the Resolution Plans placed before it and has followed the procedure laid under the Code in evaluating the plans and approving the Resolution Plan. 16. As to the separate MA filed by the unsuccessful bidder seeking direction against the CoC to consider its revised plan even after the CoC appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the procedure laid for approval of the plan by CoC. Moreover the Honourable Supreme Court in Arcelormittal India Private Limited vs. Satish Kumar Gupta Ors. (: (2019) 2 SCC 1) and Swiss Ribbons Pvt. Limited v. Union of India (2019 SCC OnLine SC 73) already held that Resolution Applicant has no vested right for consideration or approval of its resolution plan. 19. In view of the reasons aforementioned, this Bench hereby dismissed MA 527/2019 with a direction to the RP to return to the unsuccessful Resolution Applicant, if any performance guarantee or any other material given by it at the time of submitting the Resolution Plan. 20. Accordingly MA 512/2019 is hereby disposed of, whereas MA 527/2019 is hereby dismissed. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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