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TaxTMI 
TaxTMI 
TaxTMI 
2019 (3) TMI 1749
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....r limited purpose. 2. By these two applications, the applicant-M/s. Karur Vysya Bank Ltd., has sought certain reliefs which are stated as under : Relief sought in In I. A. No. 56 of 2019 : "To implead the present applicant, M/s. Karur Vysya Bank Ltd., as a respondent in the subject company petition bearing C. P. (I. B.) No. 39/7/NCLT/AHM/2017 and C.P. (I. B.) No. 40/7/NCLT/AHM/2017 being a necessary and proper party." Relief sought in I. A. 57 of 2019 : (i) "To not to consider the resolution plan submitted by M/s. Arce lorMittal India P. Ltd. (resolution applicant) till the time the dues of the applicant is paid off by M/s. ArcelorMittal India P. Ltd. (ii) To pass directions to stay further proceedings filed by the resolution professional for approval of any resolution plan under section 31 of the Insolvency and Bankruptcy Code, 2016, till the final disposal of the instant interlocutory application. (iii) To pass directions to the committee of creditors to provide a copy of resolution plan of ArcelorMittal along with the copy of minutes of meeting approving the resolution plan, to the applicant." 3. The averments made by t....
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....t has become NPA. Therefore, the applicant requested the resolution professional ("RP") on M/s. KSS Patron P. Ltd., to ensure payment of dues of the applicant to determine the eligibility of the present resolution applicant. Such letter was issued on October 19, 2018 and sent to the CFO of the present RA, M/s. ArcelorMittal India Ltd., as well as to the RP of the present case and a copy thereof have been annexed. 9. The applicant further informed the resolution professional ("RP") of the present matter by writing a letter on November 1, 2018 that the concerned RP of the M/s. KSS Patron Ltd., has accepted its claim. Thus, it is alleged that, i. e., resolution applicant, ArcelorMittal has failed to clear its dues pursuant to the order dated October 4, 2018 of the hon'ble Supreme Court so as to make it eligible as a resolution applicant. 10. Hence, the above stated relief are being sought for in the present application. 11. By opposing these applications, the State Bank of India, being a lead bank of the CoC has filed its reply in I. A. No. 57 of 2019 opposing the applications contending that the applicant filed its claim only on October 19, 2018 when a public notice of s....
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....ich was duly considered it in its meetings held on October 19, 2018 onwards. Thus, the respondents have stated that the process undertaken by the CoC for considering a resolution plan, pursuant to the decision of the hon'ble Supreme Court. Therefore, it is not vitiated in any manner or illegality. The purported development in CIRP of M/s. KSS Patrons P. Ltd., is subsequent to October 18, 2018 hence, it is beyond the purview of the hon'ble Supreme Court's judgment hence, no manner germain in the present manner. 17. Thus, for the above stated reasons, the respondents prayed for dismissal of these I. As. with cost. 18. We examined the above stated contents of the present application as well as reply filed thereof and also considered the rival submissions made before us by learned counsel for both the parties. 19. It is a matter of record that in the first round of litigation, the main I. B. Petition C. P. (I. B.) No. 39/7/NCLT/AHM/2017 and C. P. (I. B.) No. 40/7/ NCLT/AHM/2017 hearings were already concluded by admitting the petition by this Adjudicating Authority by its order dated August 2, 2017 of litigation, the nature and scope of the present proceedings is p....
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....are disposed of accordingly." 20. Thus, it can be seen as a matter of record that in earlier phases of proceedings, the M/s. Karur Vysya Bank Ltd., did not approach to the resolution professional ("RP" for short) and the committee of creditors ("CoC" for short) by lodging its claim with regard to M/s. KSS Metals P. Ltd., which is stated to be a related party of the present resolution applicant, M/s. ArcelorMittal India P. Ltd. 21. In compliance with the above stated decision and in order to complete the assigned task in a time bound manner, the RP and CoC were required to consider the eligibility of the resolution applicants, whether the later has paid off its NPA within two weeks from the date of receipt of the hon'ble Supreme Court's judgment. The RP and CoC had also fixed cut-off date/ deadline for filing such information/claims before it. 22. Thereafter, the resolution applicant is reported to have paid off its NPA as quantified by the RP and CoC of the present corporate debtor-company. 23. Therefore, it is a matter of record that M/s. Karur Vysya Bank filed its schedule Form C on October 19, 2018 before RP of M/s. KSS Patron P. Ltd., for making a claim of R....
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....use (c) of section 29A, the resolution applicant shall be allowed by the committee of creditors such period, not exceeding thirty days, to make payment of overdue amounts in accordance with the proviso to clause (c) of section 29A." By following the above stated provision, we are of the view that till the CoC reach to a categorical conclusion that the present resolution applicant is still found ineligible and is hit by section 29A of the IB Code and did not make payments of such NPAs even after the time allowed, the resolution applicant cannot be declared ineligible. Hence, such prayer of the applicant's bank is not legally sustainable. 28. That apart, another prayer of the applicant-M/s. Karur Vysya Bank to get implead itself as a party in the present proceedings is to be found not maintainable because it is not a necessary part to the present CIRP proceedings nor it is a creditor of the corporate debtor-company. Hence, such prayer is also liable to be disallowed being devoid of merits. 29. In the light of above given facts of the case, we are of the view that the present I. A. Applications Nos. 56 and 57 are not tenable at this stage in such the time-bound proc....