2018 (12) TMI 1730

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.... Sharma, Mr. Bishwajit Dubey, Mr. Kirat Nagra, Ms. Surabhi Khattar and Mr. Prafful Goyal, Advocates for Monitoring Agency. Mr. Ankur Kashyap and Mr. Manan Mehta, Ms. Arushi Singh,  Mr. Mustafa Mumtaj, Mr. P.V. Dinesh, Mr. Rajendra Beniwal and Mr. T.P. Sindhu, JUDGMENT Sudhansu Jyoti Mukhopadhaya, J. The Appellants- 'Lalit Mishra & Ors.' are the promoters of 'Sharon Bio Medicine Ltd.'- ('Corporate Debtor'). In the appeal they have challenged the order dated 28th February, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, under Section 30 (6) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B Code") read with Regulation 39(4) of the 'Insolvency and Bankrupt....

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....ehalf of the 'Resolution Professional' and the 3rd Respondent. 7. Section 4 of the 'Resolution Plan' deals with 'raising of funds under the proposed plan'. Under Clause 1 therein, the 'reduction of share capital' has been proposed and it is proposed that the Company undertakes a selective capital reduction of (i) the entire shareholding held by the Promoter Group and Secured Lenders; and (ii) up to 90% of the Equity Shares held by the public shareholders. It is mentioned that the minimum public shareholding requirement of 25% under Indian securities laws shall be adhered to. 8. The restructuring of the financial debt as part of the 'Resolution Plan' approved by the Adjudicating Authority under the 'I&B Code' does not envisage complete....

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....are independent contracts. It is a settled position of law that the liabilities of guarantors is co-extensive with the borrower. This Appellate Tribunal held that the resolution under the 'I&B Code' is not a recovery suit. The object of the 'I&B Code' is, inter alia, maximization of the value of the assets of the 'Corporate Debtor', then to balance all the creditors and make availability of credit and for promotion of entrepreneurship of the 'Corporate Debtor'. While considering the 'Resolution Plan', the creditors focus on resolution of the borrower 'Corporate Debtor', in line with the spirit of the 'I&B Code'. 10. The present appeal has been preferred by the promoters, who are responsible for having contributed to the insolvency of the....