Tribunal allows application, rejects improper admission of creditors, and upholds previous decisions.

The Tribunal found the application maintainable, allowing the Applicant to seek redressal. Respondent Nos. 2 to 7 were improperly admitted into the CoC as Financial Creditors due to non-compliance with claim submission procedures. The Corporate Guarantees were not deemed preferential transactions under the IBC. The Tribunal directed reconstitution of the CoC without recognizing Respondent Nos. 2 to 7 as Financial Creditors, while rejecting claims of fraudulence and preferential treatment. Previous CoC decisions with Respondent Nos. 2 to 7 were upheld, and no costs were awarded.

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Issues Involved:
1. Maintainability of the Application.
2. Admission of Respondent Nos. 2 to 7 into the Committee of Creditors (CoC) based on Corporate Guarantees.
3. Nature of the Corporate Guarantees as preferential transactions.

Issue-wise Detailed Analysis:

I. Maintainability of the Application:
The Tribunal found that the admission of Respondent Nos. 2 to 7 as Financial Creditors adversely affected the Applicant's position in the CoC. The Applicant was entitled to seek redressal before the Adjudicating Authority. The Tribunal concluded that the Application was maintainable, answering Issue No. I in the affirmative.

II. Admission of Respondent Nos. 2 to 7 into the CoC:
The Tribunal noted that there was no material on record indicating that Respondent Nos. 2 to 7 submitted their claims electronically with proof to the Interim Resolution Professional (IRP) by the required date. The Tribunal emphasized the statutory requirement for strict compliance with the procedure for collation of claims under the Insolvency and Bankruptcy Code (IBC) and related regulations. The Tribunal concluded that the IRP admitted Respondent Nos. 2 to 7 as Financial Creditors without proper submission and verification of documents. Therefore, Issue No. II was answered in the negative.

III. Nature of the Corporate Guarantees as Preferential Transactions:
The Tribunal discussed the provisions of Section 43 of the IBC, which defines preferential transactions. It was noted that for a transaction to be considered preferential, it must involve a transfer of property or interest for the benefit of a creditor. Since Respondent Nos. 2 to 7 were not creditors of the Corporate Debtor at the time of executing the Corporate Guarantees, the Tribunal concluded that the execution of the Guarantees did not constitute preferential transactions under Section 43. Therefore, Issue No. III was answered in the negative.

Order:
The Tribunal allowed the Application in part, directing the Resolution Professional (RP) to reconstitute the CoC without recognizing Respondent Nos. 2 to 7 as Financial Creditors. Prayers related to declaring the Guarantees as fraudulent and preferential transactions were refused. The Tribunal also clarified that decisions already taken by the CoC with Respondent Nos. 2 to 7 as members would not be called into question. No costs were awarded.

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