2021 (7) TMI 1175
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.... submits that it is engaged in the manufacturing and distribution of alcoholic beverages with around 23% of the market share of the country liquor segment in the State of Madhya Pradesh and the applicant's group in its entirety is a dominant player in the IMFL & Beer Space with six manufacturing facilities across the country. 3. The facts as narrated in the IA are that the Resolution Professional (RP) of the corporate debtor published an Invitation for Expression of Interest (IEOI) on 22.08.2018 inviting Prospective Resolution Applicants (PRAs) to submit Expression of Interest (EOI) for submission of resolution plans for the corporate debtor and the last date for submission was 10.09.2018. The applicant submitted its EOI on 08.09.2018 and three other PRAs namely Carlsberg India Private Limited, Molson Coors India Private Limited and Wave Distilleries and Breweries Limited submitted their EOIs. No EOI was submitted by third respondent-Kals Distillers Private Limited. On 25.09.2018, the RP issued the Request For Resolution Plan (RFRP), Evaluation Matrix and Information Memorandum to the applicant. After conducting the due diligence, the applicant submitted its resolution plan on....
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....2019, the applicant submitted its resolution plan. No other plan was submitted. The resolution plan of the applicant was thereafter, disclosed to all members of the COC. On 14.03.2019, the RP communicated, certain additional requirements to the applicant which were complied with by the applicant. A further e-mail from the RP, received on 18.03.2019, pointing out certain requirements in the resolution plan and the same were also complied with by the applicant, as communicated through an e-mail dated 23.03.2019. Accordingly, all the requirements imposed by the COC/RP from time to time in respect of its resolution plan were complied with by the applicant. The applicant was then invited to the 14th meeting of COC, held on 27.03.2019, to discuss its resolution plan. The COC/RP again suggested certain changes in the applicant's resolution plan. Subsequently, the RP sent the minutes of the meeting held on 27.03.2019 with conditions to be complied with by the applicant and feedback from the secured creditor, followed by others. The applicant was also informed by the RP that its revised plan would be put up tentatively at the COC meeting on 08.04.2019. On 11.04.2019, the applicant wrote....
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.... the resolution plan of the third respondent that it will also be put to vote in the next COC meeting. On the same day i.e. on 02.06.2019, the applicant requested the RP for time till 2:00 PM on 03.06.2019, to submit its final resolution plan. As the said request was not accepted, the applicant on 03.06.2019, submitted its revised resolution plan (incorporating all modifications suggested by the COC) and the undertaking under Section 29A of the Code. 10. On 04.06.2019, the RP conducted the 19th COC meeting in which the resolution plan submitted by the applicant was put to vote, for the approval of the COC under Section 30(4). Though the applicant had been invited to the earlier COC meetings, in which its resolution plan was being discussed, no invite was sent to the applicant for the 19th COC meeting held on 04.06.2019. On 05.06.2019, the applicant received an e-mail from the RP informing that the resolution plan of the applicant, being H1 was placed before the COC in the 19th meeting convened on 04.06.2019 for its approval and was put to vote and the COC by 100% vote had rejected the resolution plan of the applicant. As per the said e-mail of the RP, the reasons for disapproval o....
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....halwa are the Directors of Rhino Beverages Pvt. Ltd. and Whiskin Spirits Pvt. Ltd., companies having manufacturing interest in the alcoholic beverages space and are competitors of the applicant. Hence, the fifth respondent-COC member have vested interest in influencing its choice of resolution plan, to the detriment of the applicant. Further, Mr. Ashok Chawla also happens to be the licensee of the third respondent-Kals Distilleries Private Limited. (iii) The resolution plan of the applicant was disclosed to all the COC members including the fifth respondent-Mahalaxmi Traders and thereby the third respondent-Kals Distilleries Private Limited in collusion with the fifth respondent, came to know about the resolution plan of the applicant even before submission of its plan. (iv) The COC ignored the evaluation matrix and breached the terms of the RFRP. 15. The learned counsel placed reliance on the following decisions in support of her submissions:- (i) Nitrex Chemicals India Ltd. v. Ravindra Beleyur, MA/523/2018 in CP/689/IB)/CB/2017, dated 13.12.2018, NCLT Chennai; (ii) Kotak Investments Advisors Limited v. Krishna Chmadia, Company Appeal (AT) (Insolvency) No. 344-345 of 2020....
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....l for the respondent-RP submits that the decisions on which the applicant placed reliance are not applicable to the facts of this case. 20. The learned counsel appearing for remaining respondents have supported the averments made on behalf of the RP and prays for dismissal of the IA and placed reliance on the following decisions:- (i) K. Sashidhar v. Indian Overseas Bank and others, MANU/SC/0189/2019; and (ii) DBM Geotechnics and Constructions Private Limited vs. Dighi Port Limited, MANU/ND/8907/2019; and 21. Before adverting to the above referred rival submissions, it is relevant to refer to the decision of the Hon'ble Supreme Court of India in K. Sashidhar (Supra), and the relevant paragraphs of the same read as under:- "42. The argument, though attractive at the first blush, but if accepted, would require us to rewrite the provisions of the I&B Code. It would also result in doing violence to the legislative intent of having consciously not stipulated that as a ground to challenge the commercial wisdom of the minority (dissenting) financial creditors. Concededly, the process of resolution plan is necessitated in respect of corporate debtors in whom their financial cre....