9911796707
TMI Blog2022 (4) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ia Ltd. Committee of Creditors vs. Satish Kumar Gupta [ 2019 (11) TMI 731 - SUPREME COURT ] has occasion to consider this very issue and held that equality should be looked into with regard to same class of creditors. It is also held that there cannot be equality between class of Operational Creditors and class of Financial Creditors. The Appellant cannot claim any parity in payment offered to the Financial Creditors - there are no arbitrariness and inequality vitiating the order passed by the Adjudicating Authority - appeal dismissed. - Company Appeal (AT) (Insolvency) No. 329 of 2022 - - - Dated:- 31-3-2022 - [Justice Ashok Bhushan] Chairperson , [Dr. Alok Srivastava] Member (Technical) And [Shreesha Merla] Member (Technical) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors still the Unsecured Financial Creditors has accepted less than 1% payment. Therefore, there is neither any inequality nor any arbitrariness. It is further submitted that there is no case of the Appellant that Appellant is receiving less than the liquidation value to which it is entitled under Section 53. 4. We have heard learned counsel for the parties and perused the record. 5. In the present case, there is payment of different percentages to the Financial Creditors and the Operational Creditors. The Appellant s case is not that they are getting payment which is less than the liquidation value to which they are entitled under Section 53 r/w Section 32. The Hon ble Supreme Court in (2020) 8 SCC 531, Essar Steel India Ltd. Committ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n plan stating as to how it has dealt with the interests of operational creditors, which is not the same thing as saying that they must be paid the same amount of their debt proportionately. Also, the fact that the operational creditors are given priority in payment over all financial creditors does not lead to the conclusion that such payment must necessarily be the same recovery percentage as financial creditors. So long as the provisions of the Code and the Regulations have been met, it is the commercial wisdom of the requisite majority of the Committee of Creditors which is to negotiate and accept a resolution plan, which may involve differential payment to different classes of creditors, together with negotiating with a prospective res ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
