9911796707
TMI Blog2022 (12) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... ceed further on the basis of the fresh EoIs which have been received. Since the subsequent communication dated 16 February 2021 issued by BSE operates to lift the restraint status that was imposed on the appellants, it would be appropriate to permit the appellants to submit a resolution plan and an EoI to the CoC within a period of thirty days. The bank guarantees and the earnest money which were submitted by the appellants with their resolution plan shall be returned back to the appellants so as to facilitate the submission of a fresh resolution plan together with a fresh bank guarantee - The period for the completion of the process shall stand extended by sixty days from the date of this order. After completing the process, the RP shall f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Spinners Limited was confirmed as the highest bidder after various rounds of meetings before the CoC. The CoC approved the plan on 25 May 2020. An application was filed by Vallabh Textiles Limited seeking to declare the appellant ineligible to submit the resolution plan under Section 29A(f) of the IBC. Subsequently, the application filed by the RP came to be rejected by NCLT on the ground that the resolution applicant was ineligible under Section 29A(f) of the IBC at the time of submission of the resolution plan. The appeal against the order of the NCLT was dismissed by NCLAT by the impugned judgment. Facts pertaining to Company Appeal (AT) (Insolvency) Nos 635 and 636 of 2022 3 In the above appeals, Phoenix ARC Private Limited (the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular on 10 October 2016 by which an exit plan was devised for companies that were placed with the Dissemination Board. According to the circular, the company could either exit or get listed in the nationwide stock exchanges. Paragraph 6(a) of the circular , inter alia, stipulates that if a company remains in the Dissemination Board without taking either of the options, it shall be barred from either directly or indirectly associating with the securities market for a period of ten years. Another circular was issued on 1 August 2017 reiterating that non-compliant companies shall be removed from the securities market. 5 According to the first respondent, BSE had issued a notice on 27 March 2018 that the appellant shall be barred from access ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. The NCLAT observed that validity of the notice issued by BSE must be determined in writ proceedings under Article 226 of the Constitution before the appropriate forum. Addressing the argument that SEBI had not delegated the power under Section 11(4) of the SEBI Act 1992 to BSE, it was observed that the circulars issued by SEBI provided that if the conditions of exit are not complied with, the company shall be barred from the securities market. Thus, in that view, the BSE did not exercise power under Section 11(4) while issuing the notice. 8 We have heard Mr Mukul Rohatgi and Mr Puneet Bali, senior counsel in support of the appeals. 9 Reiterating the submissions which were urged before the appellate authority, Mr Rohatgi submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 Mr Guru Krishna Kumar, senior counsel appearing on behalf of the CoC has informed the Court that in the two appeals, the fresh EoIs have resulted in a substantially higher offer (Rs 96 crores as opposed to Rs 83 crores and Rs 165 crores instead of Rs 85 crores). Having regard to this backdrop, the process before the adjudicating authority had not culminated in the final approval of the resolution plan. 12 In this view of the matter, and since the Court is apprised of the fact that substantially higher offers are now made available to the CoC, it would be appropriate and proper that the CoC is permitted to proceed further on the basis of the fresh EoIs which have been received. Since the subsequent communication dated 16 February 2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
