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TMI Blog2023 (5) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... the Unsuccessful Resolution Applicant who had filed an application to set aside the communication issued by the RP rejecting his prayer to allow it to submit a revised resolution plan and since the Appellant in the said case could not appear, therefore, order was passed rejecting the application. However, subsequently, the Appellant in the said application filed another application for revival of the application I.A No. 406 of 2022 but the said application was also dismissed - In this background, order was passed by this Tribunal that since the application for approval of the resolution plan is under consideration before the Adjudicating Authority, therefore, the appeal filed by the Appellant in the said case was not required to be entertai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LT Rules, 2016 (in short Code ) by the Applicant/Appellant in CP (IB) No. 384/7/HDB/2018 has been dismissed. 2. The brief facts of this case are that Stressed Assets Stabilisation Fund, Mumbai (Financial Creditor) filed a Petition under Section 7 of the Code bearing CP (IB) No. 384/7/HDB/2018 against M/s Galada Power and Telecommunication Ltd. (Corporate Debtor) which was admitted on 14.08.2019 and Nitin Panchal was appointed as the Interim Resolution Professional (in short IRP ). 3. The IRP invited Expression of Interest (EOI) on 17.06.2021 in Form G from the Prospective Resolution Applicants. The Appellant submitted its financial proposal and resolution plan on 04.09.2021 for an amount of Rs. 39,87,26,575/-, however, the CoC selec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Applicant herein as they do not have any core competence in this line of activity of the Corporate Debtor. Therefore, Amrutha Constructions Private Limited is on a higher footing in comparison to the Applicant herein in accordance with the above mentioned detailed analysis and evaluations conducted by the COC on the basis of approved evaluation matric annexed herewith. The Successful Resolution Applicant can make the operations more cost effective and the existing in house talent will help in a long way to revive the Corporate Debtor. On both counts i.e. financial strength and experience in the aluminium industry, the COC found that RA1 was on a much better footing as compared to RA2 for the reasons mentioned above. The CoC was also cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e wish to rely on the ruling in, Rajaputana Properties Pvt. Ltd. vs. Binani Industries Ltd. and Ors., 2018 SCC Online NCLAT 521, wherein it was held by the Hon'ble NCLAT, that the process of approving a 'Resolution Plan' under the Code is not an auction process whereby the highest amount ought to be accepted. It was further observed that the quality of the Resolution Plan instead depends upon the credibility and track record of the Resolution Applicant. It was therefore observed that feasibility/ viability of a 'Resolution Plan' is not a fare matter of auction so that one cannot contend that the Resolution Plan with the highest amount would be the most feasible. 3. Resolution Plan' The I B Code' def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... btor', or assets and liabilities of the 'Corporate Debtor' are exchanged, but that is incidental. It is not an auction. Depending on the facts and circumstances of the 'Corporate Debtor', 'Resolution Applicant' may propose a Resolution Plan' that entails change of management, technology, product portfolio or marketing strategy; acquisition or disposal of assets, undertaking or business; modification of capital structure or leverage; infusion of additional resources in cash or kind over time; etc. Each plan has a different likelihood of turnaround depending on credibility and track record of 'Resolution Applicant' and feasibility and viability of a 'Resolution Plan' are not amenable to bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot appear, therefore, order was passed rejecting the application. However, subsequently, the Appellant in the said application filed another application for revival of the application I.A No. 406 of 2022 but the said application was also dismissed. 9. In this background, order was passed by this Tribunal that since the application for approval of the resolution plan is under consideration before the Adjudicating Authority, therefore, the appeal filed by the Appellant in the said case was not required to be entertained and the end of justice be served giving liberty to the Appellant to raise his objections regarding the approval of the resolution plan which may be heard by the Adjudicating Authority while considering the application for a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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