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TMI Blog2024 (1) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no provision in the Code for withdrawal of CIRP except Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 - Consequential amendments were also made in Insolvency and Bankruptcy Board of India. (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 by inserting Regulation 30A by notification dated 25.07.2019. The Hon ble Supreme Court had occasion to consider Section 12A in Swiss Ribbons Pvt Ltd. Anr. vs. Union of India, [ 2019 (1) TMI 1508 - SUPREME COURT ] in which various provisions of I B Code including 12A were under challenge - it was held in the said case that If the Committee of Creditors arbitrarily rejects a just settlement and/or withdrawal claim, NCLT, and thereafter, NCLAT can always set aside such decision under Section 60 of the Code. Section 12A provides for withdrawal of the application admitted under Section 7 or 9, on an application made by the applicant with the approval of 90% voting share of the Committee of Creditors. Application has to be filed as per procedure provided under Regulation 30A. The objective of Section 12A and Section 29A are totally different. Section 29A is a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Gupta, Ms. Anisha Dahiya, Advocates. For the Respondents : Ms. Pooja Mahajan, Mr. Savar Mahajan, Ms. Shreya Mahalwar, Advocates for RP. Mr. Maninder Singh and Mr. Navin Pahwa, Sr. Advocates with Mr. Siddharth Garg and Mr. Nikhil Khare, Advocates for UV ARCL. Mr. Brijesh Kumar Tamber, Mr. Vinay Singh Bisht, Mr. Prateek Kushwaha, Mr. Sahas Bhasin and Mr. Yashu Rustagi, Advocates for Intervenor (EPFO). Mr. Gopal Jain, Sr. Advocate, Ms. Bhavya Shukla, Advocates for Intervenor Mr. Sumesh Dhawan, Mr. Wattan Sharma and Mr. Shaurya Shyam, Advocates for Applicant in I.A. No. 6049 of 2023. JUDGMENT ASHOK BHUSHAN, J. These four appeals have been filed by the Suspended Director of the Corporate Debtor - Asian Hotels (West) Ltd. and shareholders of Corporate Debtor challenging the order passed by the Adjudicating Authority (National Company Law Tribunal) New Delhi Bench IV admitting Section 7 application filed by the Financial Creditor as well as orders passed in two Interlocutory Applications. These appeals arising out of same proceedings were heard together and are being decided by this common judgment. Company Appeal (AT) (Ins.) No.1192-1193 of 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme (ECLGS). Under the ECLGS, eligible borrowers could avail of additional credit lines in form of additional working capital/term loan facility on the basis of 100% guarantee coverage sanctioned under the ECLGS. v. The Corporate Debtor applied for additional facility of Rs.40 Crore under ECLGS 2.0 on 24.11.2020. The Yes Bank issued sanction letter on 03.05.2021, which was accepted by the Corporate Debtor on 04.05.2021, however, the Bank did not release the amount sanctioned under ECLGS on the ground that certain conditions which are to be fulfilled by the Corporate Debtor have not been fulfilled. vi. The default was committed by the Corporate Debtor in paying the instalments of April, 2021. There was default committed by the Corporate Debtor for loan and with regard to other facilities during April, 2021 to August, 2021. vii. On 30.07.2021, Bank issue a Loan Recall Notice recalling the entire loan amount along with interest. On the same date, notice under Section 13(2) was issued by Yes Bank. viii. On 19.08.2021, the Yes Bank filed Section 7 application before the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench IV claiming a default of an amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. Company Appeal (AT) (Ins.) No. 1271 of 2022 has been filed by Asian Hotels (East) Ltd. challenging order dated 05.08.2022. xv. The Adjudicating Authority heard the parties on Section 7 application as well as on I.A. No.3041 of 2022, I.A. No. 4021 of 2022 and by impugned order dated 16.09.2022 admitted Section 7 application filed by the Financial Creditor. I.A. No.3041 of 2022 filed by JM Financial Asset Reconstruction Company Ltd. to be substituted in place of Yes Bank was also allowed. Aggrieved by orders dated 16.09.2022, appeals have been filed, as noted above. xvi. Company Appeal (AT) (Ins.) No. 1192-1193 of 2022 was heard by this Tribunal on 29.09.2022 on which date notices were issued and this tribunal passed following interim order: In the meantime, CoC will not take any final decision regarding resolution. xvii. During pendency of the appeal, by assignment dated 30.11.2022, the JM Financial Asset Reconstruction Company Ltd. has assigned its debt to UV Asset Reconstruction Company Ltd (UVARCL). After assignment of debt in favour of UV Asset Reconstruction Company Ltd. IAs have been filed by UV Asset Reconstruction Company Ltd. in the appeals for substit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting held on 14.09.2023, where CoC noted, which was recorded in the minutes, that the proposal does not provide for an upfront payment. CoC indicated that if entire money is deposited with the Resolution Professional upfront, the member of CoC shall consider the proposal positively. xx. On 27.09.2023 when the appeal was taken, Appellants submitted before this Tribunal that Appellants are offering entire amount to be deposited along with interest. This Tribunal directed the said proposal to be placed before CoC to take a decision and in event CoC accepts the proposal, the Resolution Professional shall file an application, after deposit of the entire amount by the Appellant, under Section 12A for closure of the CIRP. xxi. Subsequent to order dated 27.09.2023, 15th CoC meeting took place on 10.10.2023 where it was noted that proposal has been submitted by the Shareholders of the Corporate Debtor holding approx. 88% shareholding in the Corporate Debtor. It was noted that on 04.10.2023 the relevant shareholders submitted a Revised Settlement Proposal in which the proposers have envisaged to deposit the entire admitted outstanding dues, without any haircut within six weeks from app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04.12.2023 stating that the Financial Creditor is not agreeable to accept the amount deposited by the Corporate Debtor. It was stated that Revised 12A Proposal has been twice disapproved by the CoC and the CoC in its commercial wisdom has not approved the 12A Proposal. It is further stated in the Affidavit that funds deposited on 15.11.2023 is actually Saraf Group/Public Shareholders of Asian Hotels (West) Ltd. The deposit made by Novak Hotels Pvt. Ltd is deposit made by a third party. In the Affidavit certain other objections were raised regarding 12A Proposal submitted by the Appellant. The counter affidavit to Affidavit dated 04.12.2023 filed by the Financial Creditor was filed by the Appellants. All the parties were heard on 20.12.2023 and orders were reserved. 3. We have heard Shri Arun Kathpalia, learned senior counsel appearing for the Appellants in Company Appeals filed on behalf of the Suspended Directors. We have heard Ms. Pooja Mahajan, learned counsel appearing for the Resolution Professional. Shri Maninder Singh, learned senior counsel and Shri Navin Pahwa, learned senior counsel have appeared for UVARCL. Shri Gopal Jain, learned senior counsel has been heard for Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the Corporate Debtor by showing highhandedness. In the affidavit filed on 04.12.2023, Now the UVARCL is finding fault with the amount deposited by Novak Hotels and Saraf Group. It is submitted that in the minutes of the 13th to 16th CoC it was very well noticed that it is 88% shareholders of the Corporate Debtor who have submitted the proposals and shareholders have every right to submit proposal for liquidating the debt of the Corporate Debtor to free the Corporate Debtor from CIRP. It is submitted that the objection now sought to be raised only indicate the intent of UVARCL to somehow reject the proposal of 12A to handover the assets to some Resolution Applicant of its choice for ungenuine purposes. Shri Kathpalia submits that present is a case where CoC having acted arbitrarily, which is apparent from minutes of its meeting dated 10.10.2023 and 13.10.2023, this Tribunal has every jurisdiction to accept the proposal and close the CIRP, the amount being already deposited, which amount may be directed to be released to the Resolution Professional for disbursement. Learned counsel relying on judgment in Swiss Ribbons Pvt Ltd. Anr. vs. Union of India, (2019) 4 SCC 17 submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n CIRP. 6. Shri Navin Pahwa, learned senior counsel appearing for UVARCL submitted that there was an agreement dated 11.08.2023 with Saraf Group which was not disclosed in the application. Under the agreement the Promoters with the help of Robust Hotels Ltd. were to bring money. It is Saraf Group which is bringing entire money. Learned counsel has referred to MCA records to indicate the shareholding of Robust and Novak Hotels. 7. Shri Gopal Jain, learned senior counsel appearing for Applicant in I.A. No. 4520 of 2023 referring to order dated 21.11.2023 in Civil Appeal No.7581 of 2023 submits that the Resolution Plan submitted by the Applicant who is a Prospective Resolution Applicant need to be considered by the CoC. It is submitted that the proposal under 12A is an indirect attempt to tie the hands of CoC. Relying on Regulation 39 (2) of CIRP Regulation, it is submitted that the Resolution Professional has to place all plans including Resolution Plan of the Applicant before the CoC. It is submitted that the CoC wanted to consider the plans but cannot consider due to the interim order passed by this Tribunal. It is submitted that level playing field should be provided to all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Adjudicating Authority) Rules, 2016. The Hon ble Supreme Court in (2018) 15 SCC 687, Uttara Foods and Feeds Private vs Mona Pharmachem made observations requiring amendment in the Rules. Section 12A was inserted by Act 26 of 2018 which provides as follows: 12A. The Adjudicating Authority may allow the withdrawal of application admitted under section 7 or section 9 or section 10, on an application made by the applicant with the approval of ninety per cent voting share of the committee of creditors, in such manner as may be specified. . 13. Consequential amendments were also made in Insolvency and Bankruptcy Board of India. (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 by inserting Regulation 30A by notification dated 25.07.2019. Regulation 30A provides as follows: 30A. Withdrawal of application. - (1) An application for withdrawal under section 12A may be made to the Adjudicating Authority - (a) before the constitution of the committee, by the applicant through the interim resolution professional; (b) after the constitution of the committee, by the applicant through the interim resolution professional or the resolution profession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2019) 4 SCC 17 in which various provisions of I B Code including 12A were under challenge. In Para 83 of the judgment following has been laid down: 83. The main thrust against the provision of Section 12-A is the fact that ninety per cent of the Committee of Creditors has to allow withdrawal. This high threshold has been explained in the ILC Report as all financial creditors have to put their heads together to allow such withdrawal as, ordinarily, an omnibus settlement involving all creditors ought, ideally, to be entered into. This explains why ninety per cent, which is substantially all the financial creditors, have to grant their approval to an individual withdrawal or settlement. In any case, the figure of ninety per cent, in the absence of anything further to show that it is arbitrary, must pertain to the domain of legislative policy, which has been explained by the Report (supra). Also, it is clear, that under Section 60 of the Code, the Committee of Creditors do not have the last word on the subject. If the Committee of Creditors arbitrarily rejects a just settlement and/or withdrawal claim, NCLT, and thereafter, NCLAT can always set aside such decision under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d outstanding dues of the financial creditors (inclusive of up-to-date interest amount), operational creditors and other creditors, without any haircut, within 45 (forty-five) Business Days from approval of the Withdrawal Application. 2. To pay off the entire CIRP costs in accordance with Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as amended CCIRP Regulations). In this connection, we also undertake to provide you with bank guarantee towards estimated expenses (as furnished by the RP) as detailed in Reg. 30A(2) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 within 7 days of the receipt of your consent so that you through the RP can make necessary application under Form FA with the Hon'ble Adjudicating Authority along with the required bank guarantee. In order to show our bonafide, we enclose herewith a copy of the bank guarantee in favour of the Corporate Debtor of INR 40 crores. The same shall be furnished immediately upon receipt of your consent for acceptance of our proposal. Since we are paying the entire admitted dues without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng together approx. 88% shareholding in the Corporate Debtor have submitted a settlement proposal under section 12A of the Code along with a copy of bank guarantee in favour of the Corporate Debtor of INR 40 Crore. 18. After deliberation and discussion and the queries asked by UVARCL, it was stated on behalf of the UVARCL that they are willing to accept the proposal upon receipt or original Bank Guarantee and its verification and the Resolution Professional was requested to verify the original Bank Guarantee. In the concluding part of Minutes of Item No. A5 following has been stated: Concluding the discussions, RP stated that once the original bank guarantee is received from the Relevant Shareholders, the RP shall proceed with the verification process of the bank guarantee as requested by CoC members and apprise the members of CoC about outcome of such verification of bank guarantee to take the process forward. 19. As noted above, applications were filed by both Suspended Directors in the company appeals, where the applicants after referring to the proposal under 12A dated 11.08.2023 and Minutes of CoC held on 18.08.2023 has prayed for following reliefs: a. Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of meeting dated 14.09.2023, a revised proposal was submitted by the Appellants the said proposal was forwarded to both the CoC and the Resolution Professional. The revised proposal dated 04.10.2023 proposed to deposit the entire admitted outstanding dues of the financial creditors, operational creditors and other creditors without any haircut i.e. INR 361,69,75,766/- as furnished by the Resolution Professional by email dated 28.09.2023 detailed in Schedule I. With regard to expenses to the tune of Rs.5,99,11,097/-, it was mentioned that the Appellant would be willing to pay reasonable legal expenses for which necessary details were asked for. It is useful to extract the proposal, which is to the following effect: To, 1. The Committee of Creditors Asian Hotels (West) Limited (Under CIRP) 2. Mr. Sapan Mohan Resolution Professional (IBBI/IPA-002/IP-N00315/2017-2018/10903) Asian Hotels (West) Limited D-54, First Floor Defence Colony. New Delhi-110024 Also at: [email protected] cirp.asianhotelswest.com Sir, Subject : Proposal under Section 12A of IBC 2016 ( IBC ) in terms of order dated 27.09.2023 of the Hon'ble NCLAT, for payment of entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany Limited, has, for the purpose of 12A Application, claimed expenses to the tune of INR 59,911,097 as detailed in Schedule II annexed herewith. Neither the details or description of the said expenses has been furnished to us nor the rationale to include the same for the purpose of the proposal for withdrawal. We would be willing to pay reasonable legal expenses and in that regard, we request you to provide the necessary details and description. We request you to: a. kindly convene the CoC for consideration and approval of this proposal. We undertake to deposit the entire INR 361,69,75,766 (Rupees Three Sixty One Crores, Sixty Nine lakhs, Seventy Five thousand seven hundred and Sixty Six only) along with balance CIRP costs of INR 2,80,43,124 within 6 weeks of approval by the CoC of the proposal. b. You, addressee no. 2, is requested to file an application under Section 12A of the IBC for the withdrawal of the application admitted under e section 7 of IBC, immediately upon the deposit of the entire amount by us in the above manner. c. Furnish us the details and description of the expenses of INR 59,911,097 claimed by the lead member of the CoC, i.e. UVARCL. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Shareholders) Schedule II S. No. Creditor Amount Admitted Interest Accrued Total Amount proposed to be paid u/s 12A 1. Other dues** - NA 59,911,097 59,911,097 **Expenses claimed by the Lead Member of the CoC, i.e. UVARC Sandeep Gupta (Promoter/Member of Suspended Board of Directors) Sudhir Gupta (Promoter/Member of Suspended Board of Directors Mr. Saumen Chatterjee (on behalf of Robust Hotels Limited and its associates, Public Shareholders) 22. Aforesaid proposal came for consideration before 15th CoC meeting held on 10.10.2023, where Item No. A9 was to deliberate on the proposal received under Section 12A of Code in respect of Corporate Debtor. The minutes noted the order dated 27.09.2023 and the proposal dated 04.10.2023 received from the Appellant. In the minutes after elaborate discussion following decision is recorded in the minutes: After detailed deliberation among the CoC members and the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted application and such other ancillary expenses connected thereto which shall form part of the insolvency resolution process cost be and is hereby approved. 25. On the basis of the voting held on 13.10.2023, the proposal was not approved. The UVARCL dissented with 98.84% vote share and other Financial Creditor was absent. Hence, the proposal was not approved with 100%. The matter came before this Tribunal on 17.10.2023 thereafter, on which date the Appellant state that the Appellant is ready to deposit the amount in the Court within four weeks. Following order was passed on 17.10.2023: ORDER 17.10.2023: By our order dated 27.09.2023, we had directed following : 27.09.2023 : I.A. No. 3897 3898 of 2023: This application has been filed by the Appellant. Appellant's case is that Appellant is ready to pay the entire 100% dues of the Creditors and CIRP Cost. Learned counsel for the Appellant submits that Appellant has already given Bank Guarantee of Rs.40 Crores which after resolution of the CoC has been verified. It is submitted that Appellant only requires approval of the CoC for deposit of the entire amount within six weeks so that application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. I say that, on 16 November 2023, two (2), FDRs i.e.. Term Deposit Receipt bearing no. 5099 for an amount of INR 316,00,00,000/-(Rupees Thren Hundred Sixteen Crore) and Fixed Deposit Receipt bearing serial no. 8043812 for an amount of INR 15,00,00,000/- (Rupees Fifteen Crores) along with the letters dated 15 November 2023 from the lien with respect to the said FDRs in favour of the learned Registrar, National Company Law Appellate Tribunal were e filed before this Hon'ble Tribunal. A copy of the list of documents filed on behalf of the Appellant along with e-filing receipts are annexed herewith and marked as Annexure A-5 (Colly). 8. I say that the original FDRs along with the original letters dated 15th November 2023 confirming the lien in favour of the Ld. Registrar, National Company Law Appellate Tribunal has also been deposited with the Ld. Registrar of this Hon'ble Tribunal, on 17.11.2023 vide diary no.48465, along with the covering letter of the same date. A copy of the covering letter dated 17 November 2023 evidencing the proof of deposit of the two (2) original FDRs and the two (2) original letters dated November 2023 is annexed herewith und marked as A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to support their decision not to approve the 12A proposal. 28. When we look into the sequence of events and proposal under 12A, it is clear that proposal which was submitted by the Appellant clearly indicated the persons who were proposing the proposal and the proposal clearly mentioned that entire dues of Financial Creditors, Operational Creditors, Employees, Workmen, Government Dues and other creditors are proposed to be paid. The Resolution Professional communicated the details vide email dated 28.09.2023, hence, in the Revised Proposal dated 04.10.2023, the Appellant has proposed to make payment of entire outstanding amount i.e. INR 361,69,75,766/-. We have already noted the proposal dated 04.10.2023 and the details of Creditors as contained in Schedule I. Proposal clearly covered 100% dues of all creditors including Financial Creditors. The aforesaid proposal was in addition to payment of entire balance CIRP cost of Rs.2,80,43,124/-. 29. We have already looked into minutes of meeting of the CoC held on 18.08.2023, 14.09.2023, 10.10.2023 and 13.10.2023. In the 13th CoC meeting, the UVARCL resolved to first verify the Bank Guarantee given along with the proposal, which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the aid of third parties. It is relevant to notice that proposal dated 11.08.2023 as well as Revised Proposal dated 04.10.2023 clearly mentions the details of persons on whose behalf the proposal is submitted. Proposal dated 11.08.2023 came for consideration before the CoC in its 13th CoC meeting on 18.08.2023, where it was noted that the RP has appraised the details of Applicants who have submitted the proposal and Robust Hotels and its associates, public shareholders having approx. 88% equity shareholding were clearly noticed in the minutes, which we have extracted above in this order. The CoC being satisfied of the Applicants, first decided to get the original Bank Guarantee verified and after verification when the matter was considered in meeting dated 14.09.2023 the proposal was not approved on the ground that it does not provide for upfront payment. We have already noticed the resolution that in event 100% amount is deposited, the proposal shall be positively considered. Again in the 15th CoC meeting, no issue was raised with regard to locus of the Applicants who have submitted the proposal and the CoC also unanimously resolved to give six weeks time to the Applicants to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the banks and other Financial Institutions were closed for business. Even the registry of this Hon'ble Tribunal was observing holidays from 11th November 2023 to 15th November 2023. Immediately upon the reopening of the Banks, the banks made disbursement on 15.11.2023. The Appellants immediately upon the receipt of the said money deposited the entire amount less INR 40 crores in a Fixed Deposit Receipt ( FDR ) with the Ld. Registrar of NCLAT. A true copy of the said receipt dated 17.11.2023 evidencing the said deposit is annexed herewith and marked as Annexure 'C'. The Appellant has also filed an application for condonation of the said delay bearing IA No.5407 5409 of 2023 and the same is pending before this Hon'ble Tribunal. The delay in complying with the orders dated 17.10.2023 passed by this Hon'ble Appellate Tribunal in deposit of the entire outstanding amount less INR 40 Crores is neither deliberate nor intentional but bonafide due to the reasons stated hereinabove. Moreover, no prejudice is caused to the Respondents or the COC. It is submitted that the FDRs along with lien letters were obtained from the Kotak Mahindra Bank (INR 316 Crores) and ID ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annexed herewith as Annexure 'F' (Colly). It is submitted that earlier Asian Hotels (East) Limited was the shareholder of the Corporate Debtor and thereafter pursuant to a scheme of demerger approved by the Hon'ble NCLT, Kolkata vide its orders 05.09.2022 and Hon'ble NCLT Chennai vide its orders dated 24.01.2022, the shares of the Corporate Debtor, held by Asian Hotels (East) Limited, were transferred to Robust Hotels Limited. It is further pertinent to mention herein that Robust Hotels Limited has also e-filed an application for substitution, vide e-filing number 9910110/06935/2023, in their appeal bearing Company Appeal (AT) (Ins.) No.1341 of 2022. Even otherwise all the three Companies are Saraf Group Companies. 37. We are of the view that after considering the submissions made by counsel for the parties and the materials brought on the record there is no non-compliance in the deposit made by the Appellant in the Court as per order dated 17.10.2023 nor there is any shortcoming or infirmity in the amounts deposited in the FDR and anxiety of UVARCL to somehow for one or other reason reject the proposal under 12A is more than apparent. From the record it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... get their plan approved, especially when CoC was interdicted from not considering plan by interim order passed in these Appeals. We may also notice the resolution which was passed by the CoC in 15th CoC meeting held on 10.10.2023 by which one of the Resolution Applicant was allowed to withdraw its EMD. CoC granted its consent to approve the request of the consortium to withdraw from CIRP process and to refund the earnest money. It is useful to notice decision of the CoC at Item No. B2: ITEM NO. B2 TO CONSIDER AND APPROVE THE REQUEST FOR WITHDRAWAL FROM THE CIRP PROCESS RECEIVED FROM THE CONSORTIUM OF MAYANK WELFARE SOCIETY (LEAD MEMBER), AMALTAS HOTEL PRIVATE LIMITED, SURESH SINGH BHADORIA AND AMALTAS RESORTS PRIVATE LIMITED AND REFUND OF THE EARNEST MONEY DEPOSITED OF INR 2 CR. Based upon the deliberations held under agenda no. A8, the following resolution, to consider and approve the request for withdrawal from the CIRP process and refund of the earnest money deposited by them of INR 2 Cr., will be put up for e-voting before the CoC- Resolution: To consider and, if thought fit, to pass with or without modification the following resolution: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptable to liquidate the debt of the Corporate Debtor and close CIRP and to make payment of debts of all Creditors. 42. In result, I.A. No. 3987-3988 of 2023 in Company Appeal (AT) (Ins.) No.1192-1193 of 2022 as well as I.A. No.3903-3904 of 2023 in Company Appeal (AT) (Ins.) No.1338-1339 of 2022 and I.A. No. 3905 of 2023 in Company Appeal (AT) (Ins.) No. 1341 of 2022 deserve to be allowed and are hereby allowed. While allowing the aforesaid IAs, we decide all the Appeals in following manner: (i) The Proposal under 12A submitted by the Appellant dated 11.08.2023 as revised on 04.10.2023 is accepted. The CIRP is closed. The order dated 16.09.2022 admitting Section 7 application is set aside. (ii) The amount deposited by the Appellant in pursuance of order dated 17.10.2023 in which lien is marked to the Registrar, NCLAT is directed to be remitted to the Resolution Professional for distribution of 100% dues of all Creditors. Resolution Professional may also invoke the Bank Guarantee of Rs.40 Crore already deposited. The Registrar, NCLAT shall intimate both the Banks; Kotak Mahindra Bank and IDBI Bank in reference to FDR in which lien is marked to the Registrar, NCLAT to dischar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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