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TMI Blog2021 (6) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... ICA nor have acceded there to. Therefore, the Applicant cannot be regarded either as a necessary or proper party to the Company Petition. The statutory rights of the debenture holders cannot be sacrificed and jeopardized, under the garb of facilitating the Resolution Plan, which is yet to see the light of the day. The ends of justice certainly would not encourage or sanction such a contingency. Besides the Resolution of R1 and the rights of the Petitioner under Section 71(10) are independent of each other. The Resolution on the basis of an administrative Circular of the RBI would not thwart the statutory rights of the Petitioner. Therefore, hearing of the Company Petition in the absence of the Applicant would not be an abuse of the process of the Tribunal. The Application is frivolous and is devoid of any merits whatsoever - application dismissed. - CA No. 129/MB/2021 in CP No. 139/MB/2020 - - - Dated:- 27-5-2021 - Janab Mohammed Ajmal, Member (J) And V. Nallasenapathy, Member (T) For the Appellant : Ashish Kamat Associates and Pratik Seksaria Associates ORDER Janab Mohammed Ajmal, Member (J) 1. This is an Application filed by the Lead Bank of the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the captioned Company Petition inter alia seeking direction to redeem the NCDs and various prohibitory reliefs with regard to the alienation or creating encumbrance on the property of the Respondents. 5. It is contended by the Applicant that on 07.06.2019, the Reserve Bank of India (RBI) issued a Circular for resolution of stressed assets. The lenders led by the present Applicant entered into an ICA to arrive at a Debt Resolution Plan for R1. The ICA lenders have appointed BOB Capital Markets Limited and Ernst Young LLP as process advisors for conducting the bid process and finding a suitable resolution for the financial stress R1 is in. The process advisors accordingly have taken various steps inviting Expression of Interest (EoI) cum Bids inter alia for sale of assets of R1. By 18.02.2021 the ICA lenders have received four bids essentially in respect of acquisition of entire shareholding and business of R1 and/or acquisition of some of its assets. The bids were likely to be put up for voting before the ICA lenders on 24.03.2021. 6. The implementation of the Resolution Plan would require approval of the ICA and non-ICA lenders. It may additionally require vacation of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 71(10) of the Act. Besides no Resolution Plan has yet been finalised and no time frame can be predicted for such an exercise. The Application deserves to be dismissed. 9. We have heard the learned counsels appearing for the parties. The Applicant while filing the present Application under Rule 11 of the Rules has also relied upon Rule 73(3) (4) of those Rules to buttress its prayers. It would accordingly be appropriate to refer to Rule 73(3) (4) of the Rules. 73. Application under sections 71(9), 71(10), section 73(4) or section 74(2) and 76(2).- xxx xxx xxx (3) The Tribunal shall pass an appropriate order within a period of sixty days from the date of receipt of application under sub-rule (1): Provided that the Tribunal shall, before making any order under this rule, give a reasonable opportunity of being heard to the company and any other person interested in the matter. (4) The Tribunal may, if it is satisfied, on the application filed under sub-rule (1), that it is necessary so to do, to safeguard the interests of the company, the debenture holders or the depositors, as the case may be, or in the public interest, direct, by order, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest of the Company or in the public interest. The provision accordingly would not be extended to mean that the Tribunal would not pass any orders or would refrain from passing any orders under Section 71(10) of the Act. The provision rather means that the Tribunal taking into consideration all the antecedent factors may by an order direct the Company to make the repayment within a particular time frame subject to other conditions. Therefore Rule 73(4) of the Rules would not come in aid of the Applicant. 13. The Applicant while seeking impletion in the Company Petition has sought dismissal of the Company Petition. Both the prayers are paradoxical and could not go hand in hand. Even otherwise the Company Petition cannot be dismissed without being heard on merits, as already indicated. The Applicant thus is not entitled to be impleaded as an intervener in the Company Petition. 14. Rule 11 of the Rules provides that inherent powers of the Tribunal could be applied for meeting the 'ends of justice' or to 'prevent the abuse of the process of the Tribunal'. It is trite that the inherent powers cannot be exercised to subvert the express provisions of a statute. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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