TaxTMI 
TaxTMI 
2021 (3) TMI 754
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Desai as IRP/RP. 2. On initiation of the CIRP, the IRP/RP invited expression of interest (hereinafter referred to as "EOI"). In pursuance of invitation of EOI, the RP received expression of interest from the intended bidders, amongst which the applicant is also one of the bidder. On receipt of EOI and requisite undertaking from the applicant, resolution professional (hereinafter referred to as "RP") shared the information memorandum with the applicant and last date of submission of resolution plan was fixed on October 3, 2019. 3. The applicant has shown his interest to visit the plant of corporate debtor vide its e-mail dated September 18, 2019 by fixing the date and time to visit the plant. Accordingly, on September 29, 2019 the applicant informed the schedule date and time and number of members who will visit the plant. 4. After visiting the plant, the applicant submitted the resolution plan on October 1, 2019. The RP on receipt of the resolution plan invited the applicant in the meeting of committee of creditors (hereinafter referred to as "CoC") which was held on October 22, 2019 accordingly, the applicant participated in the CoC meeting through its representative Mr. Manas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as already informed that the resolution plan submitted by the applicant for the CD on October 21, 2019 was not in compliance with the Insolvency and Bankruptcy Code, 2016, the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as the "CIRP Regulations") and RF RP/bid documents and being conditional/contingent in nature. 11. Thereafter, the process advisor, i. e., Duff and Phelps India continuously followed up and requested the applicant to provide their revised resolution plan so as to in compliance with the Code, the CIRP Regulations and the RF RP/bid documents, so that the CIRP can be completed in time bound manner. However, the applicant submitted the revised resolution plan during the 16th CoC meeting held on January 29, 2020, i. e., almost after three months, after submitting the first resolution plan. It is to be mention herein that till 16th CoC meeting, the applicant submitted 7 (seven) resolution plan but all are deficient, and resolution applicant was asked to remove deficiency in each occasion. Not only the RP but member of the CoC during several meetings of the CoC requested the appl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....heir business and headquarters details and its diverse trading portfolio. Respondent No. 3 has further provided all the information with respect to their payment progress in the matter of "Allied Strips Ltd.". 15. It is pertinent to mention herein that the applicant has submitted the revised plan on February 9, 2020 immediately prior to the 17th meeting of the CoC, which was held on February 10, 2020 for consideration of the CoC, wherein, the applicant enhanced their resolution plan amount to Rs. 90.39 crores however revised resolution plan of the applicant was conditional in nature and the amount so offered is lesser than amount so offered by respondent No. 3 (H1). 16. Thus in 17th CoC meeting held on February 10, 2020 the CoC declared respondent No. 3 as H1 bidder and accordingly the same was put to voting by the CoC member in a 17th meeting which was approved by 82.41 per cent. voting share of the CoC members as is apparent from annexure B to the reply to the application. 17. It is to be mention herein that, on the date of filing of the application, i. e., February 4, 2020 the resolution professional and the member of the CoC were negotiating with respondent No. 3 and respond....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ubmitted 7 (seven) resolution plan and on each occasion the plan was found deficient of compliance under rule 38 of CIRP Regulations, though, the applicant was duly communicated by RP and member of CoC to remove the deficient and submit in compliances of regulation 38. Not only that, plan which was submitted on January 29, 2020 was also conditional/contingent in nature and the applicant had indicated in their resolution plan about exist midway, even if, the applicant would have been declared as a successful resolution applicant after following the due process of biding and evaluation by the CoC. 22. Fourthly, the revise resolution plan so submitted by the applicant on February 9, 2020 was also conditional in nature and the amount so offered was lesser than the amount so offered by respondent No. 3, thus in the 17th CoC meeting, which was held on February 10, 2020 respondent No. 3 was declared as H1 bidder and the same was put to voting by the CoC member, as is reflected from the minute of 17th CoC meeting (annexure A). Thus the resolution plan of the applicant was/is non-compliant of the CIRP Regulations on the date of voting by the CoC member. 23. It is also matter of record tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4) : "As aforesaid, upon receipt of a 'rejected' resolution plan the Adjudicating Authority (National Company Law Tribunal) is not expected to do anything more ; but is obligated to initiate liquidation process under section 33(1) of the Insolvency and Bankruptcy Code. The Legislature has not endowed the Adjudicating Authority (National Company Law Tribunal) with the jurisdiction or authority to analyze or evaluate the commercial decision of the CoC much less to enquire into the justness of the rejection of the resolution plan by the dissenting financial creditors. From the legislative history and the back ground in which the Insolvency and Bankruptcy Code has been enacted, it is noticed that a completely new approach has been adopted for speeding up the recovery of the debt due from the defaulting companies." K. Sashidhar v. Indian Overseas Bank [2019] 213 Comp Cas 356 (SC) and subsequently also reiterated by the hon'ble Supreme Court of India in its judgment passed in Civil Appeal Nos. 8766-67 of 2019 Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta [2020] 219 Comp Cas 97 (SC) observed as follows : "The commercial wisdom of the committee of ....