TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 600
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.... filed in CP No.(IB)/22/ND/2018 by the Adjudicating Authority (National Company Law Tribunal) Division Bench, Delhi, Bench III, by virtue whereof Resolution Plan submitted by Respondent No. 2 - 'M/s NCJ Infrastructure Pvt. Ltd.', approved by the Committee of Creditors in its 15th Meeting convened on 4th June, 2019 with a voting percentage of 100%, was approved by the Adjudicating Authority. The approval was accorded by the Adjudicating Authority at the instance of Resolution Professional who had filed application under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') while no application under Section 60(5) of the I&B Code was pending consideration before the Adjudicating Authority. 2. Before adverting to the factual matrix of the case in hand, it is apt to mention that the Resolution Plan submitted by Respondent No. 2 (Resolution Applicant) has been approved by the Committee of Creditors with 100% voting share, Performance Bank Guarantee as required under the Regulations has been deposited by the Resolution Applicant and all statutory and regulatory compliances have been made. The main issue raised in this appeal is in regard to th....
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....s including Hotel Orient Taj at Fatehabad Road, Agra and some plots of land in Mauja Basai Mustakil, Agra and Greater Noida. It was claimed that the Corporate Debtor has ownership of the above named five star Hotel at Agra in addition to having two more valuable properties and the Appellants had sought the valuation reports in relation thereto from Respondent No. 1 during the Corporate Insolvency Resolution Process and filed the applications in this regard. However, same were rejected by the Adjudicating Authority vide order dated 26th August, 2019 against which Company Appeal (AT) (Insolvency) No. 953 of 2019 was preferred in this Appellate Tribunal which came to be disposed of vide order dated 16th September, 2019 with direction to the Adjudicating Authority to look into the Hotel operation and valuation of the properties of the Corporate Debtor. The Adjudicating Authority passed orders dated 19th November, 2019 and 4th February, 2020 for ascertaining the valuation of such properties. Before consideration of Resolution Plan, the Adjudicating Authority was to examine the issue of valuation of properties. Meanwhile there was outbreak of COVID -19, the matter was listed on 8th June,....
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....s of the Financial Creditors comprising the Committee of Creditors have been satisfied in terms of the approved Resolution Plan consuming about Rs. 90 Crores, while the total liability of Corporate Debtor did not exceed Rs. 120 Crores. If the assets of the Corporate Debtor had been sold at correct valuation price of Rs. 410 Crores, Appellants would have got substantial surplus amount being the stakeholder of Corporate Insolvency Resolution Process. Thus, the Appellants have suffered prejudice. 6. Per contra it is argued on behalf of Respondent No. 1 - Resolution Professional that the appeal is not maintainable and the Appellants have failed to demonstrate as to how the Resolution Plan of Respondent No. 2 is in contravention of law or that there has been any material irregularity in exercise of powers by the Resolution Professional during CIRP. It is further submitted that in terms of law laid down in 'Maharashtra Seamless Limited vs. Padmanabhan Venkatesh & Ors.' (Civil Appeal No. 4242 of 2019) decided on 22nd January, 2020 challenge by Appellants to the liquidation value of Corporate Debtor cannot be sustained and the Appellants cannot also question the commercial wisdom of Commi....
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....claims have been provided for in the Resolution Plan. 8. Having heard learned counsels for the parties as regards maintainability of the appeal, we are of the considered opinion that the appeal does not raise any question for determination with reference to grounds of appeal qua approval of a Resolution Plan as contemplated under Section 61(3) (i) to (v) of the I&B Code. It is not the Appellants' case that the Resolution Plan is in conflict with any extant law or that there has been any material irregularity at the hands of Resolution Professional during the conduct of Corporate Insolvency Resolution Process. The record, on the contrary, portrays a very dismal and distressing picture of the Appellants, being in ex-management of the Corporate Debtor, who have been playing truant and holding back while their cooperation was sought by the Resolution Professional in carrying forward the Corporate Insolvency Resolution Process. It is not in controversy that at one stage the Adjudicating Authority had to issue bailable warrants against the Appellants for thwarting the Corporate Insolvency Resolution Process in not extending cooperation to the Resolution Professional who had to file appl....
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....ty at the hands of Resolution Professional in Corporate Insolvency Resolution Process or infraction of any of the grounds enumerated under Section 61(3) (i) to (v) have been raised in this appeal to dislodge and disturb the commercial wisdom of Committee of Creditors in approving the Resolution Plan of Respondent No. 2 nor has the Appellant been able to establish any lapse on the part of Adjudicating Authority in examining and determining that the approved Resolution Plan did in any manner not conform to conditions under Section 30(2) of the I&B Code and that the same was in conflict with any extant law. We would thus have no hesitation in holding that the appeal is not maintainable 9. As regards quorum, suffice it to say that a Special Bench of Judicial Member had been reconstituted by the Hon'ble President, NCLT during outbreak of COVID 19 for hearing of the matter through virtual mode and the matter has been heard by the Special Bench culminating in passing of the impugned order. Objection raised to the constitution of the Bench as also same not being an urgent matter has to be repelled, regard being had to the timelines prescribed under I&B Code and justice being accessible. ....