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TMI Blog2019 (12) TMI 1445X X X X Extracts X X X X X X X X Extracts X X X X ..... Law Appellate Tribunal cannot go beyond the commercial wisdom of the 'Committee of Creditors'. This Appellate Tribunal has also held that the commercial wisdom is a subject matter of the 'Financial Creditor (Commercial Creditors), which cannot be decided by the Adjudicating Authority (National Company Law Tribunal) or the Appellate Tribunal (National Company Law Appellate Tribunal). In the present case, there is nothing on record to suggest that the Appellant is a First Charge holder of the assets of the 'Corporate Debtor'. Further, as per the decision of the Hon'ble Supreme Court in 'Committee of Creditors of Essar Steel India Ltd.' (supra), the equitable treatment is to be accorded to each creditor dependin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication preferred by the Appellant and 'resolution plan' submitted by 'Fort Gloster Industries Limited' has been approved. The 'Corporate Insolvency Resolution Process' was initiated against 'Fort Gloster Industries Ltd.' (Corporate Debtor). In the insolvency process, the resolution plan submitted by the 'Gloster Limited' (resolution applicant) was approved by the 'Committee of Creditors' in its meeting held on 24th April, 2019. The 'Resolution Professional' thereafter filed the approved 'resolution plan' before the Adjudicating Authority for approval under section 31 of the I B Code. At that stage number of persons including the Appellant raised objection by filing applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the plan allows to ignore mandate of Section 48 of the Transfer of Property Act, 1882 which will apply by virtue of section 30(2) of the I B Code, thereby allowing for a preference to be granted to the First Charge holder over the security of others. 6. Learned counsel appearing on behalf of the 'Resolution Professional' submitted that the Appellant cannot challenge the equitable treatment as made under the resolution plan and provided to all 'secured financial creditors' who form a distinct class within the financial creditors. Reliance has been placed on sub-section (4) of section 30 to suggest that the 'secured creditors' having made class by itself, no distinction made on the basis of First Charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant dissented in the meeting of the 'Committee of Creditors' and because of dissent cannot claim preferential treatment than the other 'secured creditors'. 10. Similar plea has been taken by the 5th Respondent - 'successful resolution applicant'. 11. Learned counsel for the Resolution Professional relied on the decision of the Hon'ble Supreme Court in 'Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta' dated 15thNovember, 2019 wherein Hon'ble Supreme Court held that the 'I B Code' recognises secured and unsecured financial creditors and equitable treatment is to be accorded to each creditor depending upon the class to which it belongs: secured or unsecured or financial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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