2019 (8) TMI 1871 - AT - Insolvency and Bankruptcy

Appellate Tribunal upholds Resolution Professional appeal, emphasizing fair process and legal compliance in insolvency proceedings.

Madhusudan Sharma Versus J.D. Aneja Edibles Pvt. Ltd.

Madhusudan Sharma Versus J.D. Aneja Edibles Pvt. Ltd. - TMI Issues:1. Approval of resolution plan by Adjudicating Authority2. Observations made against the Resolution Professional3. Allegations related to transactions under specific sections4. Role of Committee of Creditors (CoC) in approving resolution plan5. Disposal of application by Adjudicating AuthorityAnalysis:1. The appeal was filed by the Resolution Professional against the order of the Adjudicating Authority approving the resolution plan. The Adjudicating Authority had made observations against the Resolution Professional regarding the disposal of an application related to transactions under specific sections of the law.2. The Adjudicating Authority noted that the Resolution Professional had not been diligent in pressing for an order on the application, which raised concerns about the eligibility of a resolution applicant under Section 29A(g). The Adjudicating Authority also highlighted the Committee of Creditors' decision to approve the resolution plan despite allegations against the promoters of the Corporate Debtor.3. The Resolution Professional argued that the application had been taken up multiple times by the Adjudicating Authority, but no order was passed. The Appellate Tribunal agreed with the Resolution Professional, stating that no order was passed on the listed dates, thereby rejecting the observations made against the Resolution Professional.4. Considering the facts presented, the Appellate Tribunal set aside the observations made against the Resolution Professional in the impugned order and allowed the appeal. The Tribunal emphasized the importance of fair consideration and due process in such matters to protect the interests of all parties involved.5. The judgment underscores the significance of procedural fairness and adherence to legal requirements in insolvency proceedings. It highlights the need for thorough consideration of applications and the implications of decisions made by the Committee of Creditors in approving resolution plans. The Resolution Professional's role in diligently pursuing matters before the Adjudicating Authority is crucial to ensuring transparency and compliance with the insolvency framework.