https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=293164 https://www.taxtmi.com/caselaws?id=293164 Approval of Resolution Plan - validity of finding of the Adjudicating Authority that the earnest money deposit is unreasonable - HELD THAT:- It is not in dispute that the Resolution Professional fixed the earnest money deposit as per decision of the Committee of Creditors and issued Information-Memorandum and invited expression of interest on 14th May, 2018. Total 18 expression of interest were received from the resolution applicants but 17 resolution applicants did not choose to deposit Rs. 100 Crores. It is also not in dispute that M/s. BRS Ventures Investment Limited (BRSVIL) not only deposited a sum of Rs. 100 Crores towards earnest money deposit but also filed a resolution plan - It is also not disputed that other 17 resolution applicants have not deposited Rs. 100 Crores and they have also not submitted the resolution plan within the time. The total debt outstanding as adzmitted by the resolution professional on 5th September, 2018 was Rs. 1356.89 Crores and the requirement of the expression of interest is Rs. 100 Crores , which is less than the outstanding dues. It is true that the clause relating to forfeiture of Rs. 100 Crores was arbitrary but persons having not challenged the expression of interest published on 14th May, 2018, till the resolution plan was approved by the Committee of Creditors , we are of the view that after approval of resolution plan , it was not open to any person to challenge the same - The shareholders and promoters being ineligible to file the resolution plan under Section 29A, they have no right to raise their grievance with regard to the expression of interest published on 14th May, 2018 fixing earnest money deposit of Rs. 100 Crores - In this background, it was not open for the Adjudicating Authority to entertain Interlocutory Application Nos. 409/2018 and Interlocutory Application Nos. 450/2018, which were filed by the shareholders and promoters , who were ineligible to submit the resolution plan and that too after approval of the resolution plan by the Committee of Creditors . In the present case, it is found that two Interlocutory Applications preferred by the shareholders and promoters were not maintainable, as they were not eligible as resolution applicants . The other resolution applicant namely M/s. Well-Do Holdings and Exports Private Limited having not submitted the resolution plan within the time nor the earnest money . Further, M/s. Well-Do Holdings and Exports Private Limited having not moved before the Adjudicating Authority before the last date of submission of the resolution plan and the Interlocutory Applications was filed without challenging the approved resolution plan , the Interlocutory Application should have been rejected. Matter remitted to the Adjudicating Authority with directions to pass appropriate order under Section 31, taking into consideration the resolution plan of M/s. BRS Ventures Investment Limited (BRSVIL) as approved by the Committee of Creditors - appeal allowed by way of remand. Case-Laws Insolvency and Bankruptcy Mon, 08 Apr 2019 00:00:00 +0530