2022 (11) TMI 1349 - SCH - Insolvency and Bankruptcy

Supreme Court directs parties to submit notes, awaits Committee of Creditors' ruling before decision

M.K. Rajagopalan Versus Dr. Periasamy Palani Gounder & Anr.

The Supreme Court heard arguments from both parties and directed them to submit further notes by a specified date. The Court noted the approval by the ... Approval of Resolution Plan for the revival of the Corporate Debtor - discrimination of Related Party Financial or Operational Creditor - HELD THAT:- Having regard to the totality of the circumstances, when it has been pointed out that the approval as now accorded by CoC in its meeting dated 31.10.2022 has been placed for approval before the Adjudicating Authority, we would request the Adjudicating Authority to await the decision of this Court in these matters. The judgment remains reserved. Issues:- Consideration of I.A. No.168602/2022- Request to Adjudicating Authority to await the decision of the CourtAnalysis:The Supreme Court, comprising Hon'ble Mr. Justice Dinesh Maheshwari and Hon'ble Mr. Justice Vikram Nath, heard arguments from both the Appellant, represented by Dr. Abhishek Manu Singhvi and team, and the Respondent, represented by Mr. Tushar Mehta and a large legal team. The Court considered I.A. No.168602/2022 and directed the parties to submit further notes on their submissions by 21st November, 2022. The judgment in this matter was reserved pending additional submissions.In a significant development, the Court, taking into account the circumstances, noted that the Committee of Creditors (CoC) had given approval on 31.10.2022, which was subsequently presented for approval before the Adjudicating Authority. In light of this, the Court made a specific request to the Adjudicating Authority to hold off on any decisions until the Supreme Court's ruling on these matters. This decision reflects the Court's intention to ensure that its judgment is considered before any further actions are taken by the Adjudicating Authority.