2019 (5) TMI 387

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....ka Sharma, Ms. Tannya Barawap, Ms. Shivani Sinha, Ms. Ashly Cherin, Ms. Vrinda Sagar, Advocates for RP. Mr. Bishwajit Dubey, Ms. Surabhi Khattar, Mr. Prafull Goyal, Mr. Aditya Marwah, Mr. Shatrajit Banerji, Advocates for R-5 (SBI). Mr. Nithin Saravanan, Ms. Priyadarshini and Ms. Arunima Singh, Advocates for IndusInd Bank. Mr. Rajiv Mehra, Sr. Advocate with Mr. Shubhabrato Chakraborti, Mr. Ashish Mukhi, Mr. Dhruv Malik, Mr. Kamlendra Singh, Advocates for DBS Bank. Mr. Ashok KV Jain, Ms. Priyanka Das, Mr. Amit Kasva, Advocates for Allahabad Bank. Mr. Manu Sheshadri, Mr. Arjun Syal, Mr. Shreyam Das, Mr. Samasth Chowdhary and Ms. Tanvi, Advocates for Industrial Securities. JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. In all these appeals as c....

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....ssented in favour of the 'Resolution Plan'. Thus, in fact, the voting which started on 26th March, 2018 continued upto 6th April, 2018. Finally, the 'Committee of Creditors' with 81.31% of the voting shares approved the 'Resolution Plan' on 6th April, 2018. 4. The 'Resolution Professional' submitted the approved 'Resolution Plan' of Mr. Sharad Sanghi before the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, and also requested to exclude certain period. However, the Adjudicating Authority by impugned order dated 31st July, 2018 rejected the prayer and ordered for liquidation, though it noticed that the total votes in favour of the 'Resolution Plan' stood at 81.31% after including the votes of 'Standard Charte....

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....nt payment, Rs. 75crores will come in one year, remaining will come to the creditors in as staggered payments in a period of 15 years from the effective date. 40. We don't want to get into as to whether such a plan is reasonable or not, because to test the reasonableness, viability, feasibility, the CoC has given the authority to take a decision with the power conferred upon them. We cannot transgress into the jurisdiction of CoC, unless process id devoid of the set procedures, fairness and transparency." 7. Learned counsel appearing on behalf of the Appellants submitted that application under Section 7 was admitted on 4th July, 2017 and order was signed and uploaded on 12th July, 2017 i.e. after eight days whereinafter the 'Interim Re....

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.... and feasibility and such other requirements as may be specified by the Board. 11. As per sub-section (5) of Section 30, the 'Resolution Applicant' is required to attend the meeting of the 'Committee of Creditors' in which the 'Resolution Plan' of the Applicant is considered. 12. From the aforesaid provisions, it is clear that the 'Committee of Creditors' is required to notice the 'Resolution Plan' to find out its viability and feasibility apart from the financial matrix and in appropriate cases may ask the 'Resolution Applicant' to improve the plan. The date of approval for 'Resolution Plan' is fixed by the 'Committee of Creditors'. They may fix the date of voting and in appropriate case they may extend the period of voting. There is n....

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.... of one or other members that because of the failure the 'Corporate Debtor' will be liquidated, it is always open to the members to change its opinion subsequently with the approval of the rest of the members of the 'Committee of Creditors' but it should be within 270 days. 15. In view of the aforesaid findings and the facts as emerges, we hold that the 'Resolution Plan' in question stands approved by the 'Committee of Creditors' with 81.39% voting shares. 16. In the case of "Quinn Logistics India Pvt. Ltd." (Supra) which was affirmed by the Hon'ble Supreme Court, this Appellate Tribunal observed that the period of non-joining of the 'Interim Resolution Professional' should be excluded for the purpose of counting the total period of 180....

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.... the Hon'ble Supreme Court in "ICICI Bank Ltd. vs Sidco Leathers Ltd. & Ors. ─ (2006) 10 SCC 452)", wherein the Hon'ble Supreme Court held that the claim of first charge holder will prevail over the claims of second charge holder. 21. Reliance has also been placed on United National Commission on International Trade Law (UNICITRAL) and Principles for Effective Insolvency and Creditor/ Debtor Regime, published by World Bank. 22. However, the aforesaid submissions cannot be accepted as at the 'Resolution Process', 'Financial Creditor' claims are decided as per provision of the 'I&B Code'. All the 'Financial Creditors' are treated to be similar, if similarly situated. 23. We have noticed that the Adjudicating Authority has made cer....