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TMI Blog2021 (1) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... ot earlier. The Resolution Professional shall, at the time of submitting the Resolution Plan for approval of the learned NCLT, disclose details of applications filed under Section 25(2)(j) of the Act to the learned NCLT, for the learned NCLT to take an informed decision on the Resolution Plan. It is thus clear that it would be for the learned NCLT to consider the applications under Section 25(2)(j), if pending, and the effect thereof, especially in light of Section 29A of the Act, on the Resolution Plan submitted for its approval under Section 30 of the Code - as admittedly the proceedings with respect to respondent nos.5 and 6 are still pending before the learned National Company Law Tribunal, the present petition at this stage cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Insolvency Resolution Process of any Corporate Debtor to the Resolution Professional so as to enable the Resolution Professional to certify the said fact in Form H of the CIRP Regulations. (iv) All Financial Creditors, including allottees/flat/apartment purchasers who are in any way related to the Promoter of a Corporate Debtor, be excluded from participating as part of the Committee of Creditors under Section 21 of the Code. (v) All Financial Creditors who are themselves party to any Avoidance Transaction under Sections 43, 45, 50 and 66 of the Code are excluded from being a part of the Committee of Creditors. B. In the alternative, pass a writ of mandamus or any other writ order or direction of like nature directi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent no.1 submits that as far as prayer A is concerned, it is for the learned National Company Law Tribunal (NCLT) as the Adjudicating Authority to device its procedure for consideration of the applications filed under Section 25(2)(j) of the Code as also to give effect to Section 29A of the Code. As far as respondent no.1 is concerned, it has in form of Regulation 35A of the 2016 CIRP Regulations prescribe the time lines within which the Resolution Professional must file an application under Section 25(2)(j) of the Code before the learned NCLT. 5. The learned counsel appearing for the respondent no.6 submits that the present petition is premature inasmuch as the further proceedings of CIRP of respondent no.6 have been stayed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid purpose is that the RP includes these details in the Resolution Plan submitted under Section 30 to the NCLT. These details ought to be available before the NCLT at the time of approval of the Resolution Plan under Section 31. The argument that avoidance applications relating to preferential and other transactions can therefore survive beyond the conclusion of the CIRP is contrary to the Scheme of the Code. xxxxxxx 82. Though at first blush, Mr. Ahluwalia s submission may appear attractive, a closer analysis reveals that Form H seeks to achieve what is mandated in the Regulations. Regulation 39 requires details of the objectionable transactions to be placed by the RP before the NCLT. Form H is merely a format prescribed to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess. Once the CIRP process itself comes to an end, an application for avoidance of transactions cannot be adjudicated. The purpose of avoidance of transactions is clearly for the benefit of the creditors of the Corporate Debtor. No benefit would come to the creditors after the Plan is approved. Thus, Form H cannot come to the aid of avoidance applications to remain pending beyond the CIRP process. (Emphasis supplied) 9. A reading of the above findings of this court would show that the Resolution Professional shall, at the time of submitting the Resolution Plan for approval of the learned NCLT, disclose details of applications filed under Section 25(2)(j) of the Act to the learned NCLT, for the learned NCLT to take an informed deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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