TaxTMI 
TaxTMI 
2021 (9) TMI 733
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....d. (hereinafter referred to as 'the Corporate Debtor') has approached this Court being aggrieved by the resolution passed in the 8th Committee of Creditors (hereinafter referred to as 'CoC') meeting dated 25.5.2021; the order passed by the National Company Law Tribunal, Chennai (hereinafter referred to as 'NCLT' or 'the Adjudicating Authority') dated 4.6.2021 thereby permitting withdrawal of Corporate Insolvency Resolution Process (hereinafter referred to as 'CIRP') in respect of the Corporate Debtor; and the order passed by the Adjudicating Authority/NCLT dated 6.7.2021 thereby closing the proceedings initiated by D. Ramjee. 3. Civil Appeal No. 1792 of 2021 is filed by K.N. Rajakumar, suspended Director of the Corporate Debtor (respondent No.1 in Civil Appeal No.2901 of 2021 filed by D. Ramjee) thereby challenging the order passed by the National Company Law Appellate Tribunal, Chennai Bench (hereinafter referred to as 'NCLAT') dated 30.4.2021 dismissing the appeal filed by K.N. Rajakumar challenging the order dated 22.4.2021 passed by NCLT vide which NCLT had directed the Resolution Professional (hereinafter referred to as 'RP') to convene a meeting of CoC consisting of the me....
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....mpany Appeal (AT) (Insolvency) No.87 of 2017 before NCLAT. NCLAT vide order dated 2.8.2017 allowed the said appeal filed by the Corporate Debtor and set aside the order dated 13.6.2017 passed by NCLT. NCLAT had also recorded the assurance given by the Corporate Debtor that they will be paying three years' arrears of salary to the three employees including Ramjee, who had initiated CIRP proceedings against the Corporate Debtor. In pursuance to the assurance given to NCLAT, the Corporate Debtor made payment vide two Demand Drafts dated 8.8.2017 for a sum of Rs. 18,50,000/to D. Ramjee along with a letter dated 22.8.2017. In the meanwhile, one other exemployee of the Corporate Debtor, N. Subramanian, who is respondent No.3 in both the appeals, also issued a Demand Notice dated 29.6.2017 under Section 8 of the IBC to the Corporate Debtor. On failure by the Corporate Debtor to comply with the Demand Notice, N. Subramanian also filed an application under Section 9 of the IBC being CP/597/ (IB)/CB/2017 on 21.7.2017 before NCLT. NCLT admitted the said application under Section 9 of the IBC filed by N. Subramanian vide order dated 17.11.2017. Being aggrieved by the initiation of CIR....
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....t the Corporate Debtor was dismissed by NCLT vide order dated 6.7.2021, having been rendered infructuous. Hence Civil Appeal No.2901 of 2021, filed by D. Ramjee before this Court being aggrieved as aforesaid. 5. In Civil Appeal No. 2901 of 2021, this Court on 23.7.2021 passed the following order: "Permission to file appeal is granted. Issue notice. In the meantime, there shall be stay of operation and implementation of the impugned judgment and stay of further proceedings taken out in pursuance of the impugned order." 6. In Civil Appeal No.1792 of 2021 filed by K.N. Rajakumar, this Court vide the same order dated 23.7.2021 directed the said appeal to be listed along with Civil Appeal No.2901 of 2021 filed by D. Ramjee. 7. Subsequently, K.N. Rajakumar filed an application being I.A. No.87750 of 2021 in Civil Appeal No.2901 of 2021 seeking vacation of the stay granted by this Court vide order dated 23.7.2021. When the said I.A. was listed, we directed the appeals to be heard on merits. Accordingly, on 1.9.2021 the appeals were heard at considerable length. 8. We have heard Shri Ritin Rai, learned Senior Counsel appearing on behalf of D. Ramje....
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....laims of members of CoC, amounting to Rs. 46,31,16,650/. It is submitted that order dated 13.6.2017 passed by NCLT admitting Section 9 application of D. Ramjee initiating CIRP proceedings was challenged by the Corporate Debtor before NCLAT. NCLAT vide order dated 2.8.2017 had allowed the appeal and set aside the said order dated 13.6.2017. It is submitted that D. Ramjee did not challenge the same and as such, said order dated 2.8.2017 had attained finality. It is further submitted that D. Ramjee had received an amount of Rs. 18,50,000/as arrears of salary. Vide order dated 3.3.2021, this Court had rejected the application filed by D. Ramjee for permission to file an appeal. It is submitted that having not challenged the order dated 2.8.2017 passed by NCLAT allowing the appeal and setting aside the initiation of CIRP proceedings against the Corporate Debtor at the behest of D. Ramjee, he did not have any locus in the proceedings initiated by the Corporate Debtor for withdrawal of CIRP proceedings. It is submitted that the new Management of the Corporate Debtor has taken a loan from HDFC Bank, which fact has also been acknowledged by NCLT in its order dated 4.6.2021 while pe....
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....tion under Section 7, there are various important duties and functions entrusted to RP and CoC. RP is required to issue a publication inviting claims from all the stakeholders. He is required to collate the said information and submit necessary details in the information memorandum. The resolution applicants submit their plans on the basis of the details provided in the information memorandum. The resolution plans undergo deep scrutiny by RP as well as CoC. In the negotiations that may be held between CoC and the resolution applicant, various modifications may be made so as to ensure, that while paying part of the dues of financial creditors as well as operational creditors and other stakeholders, the Corporate Debtor is revived and is made an ongoing concern. After CoC approves the plan, the Adjudicating Authority is required to arrive at a subjective satisfaction, that the plan conforms to the requirements as are provided in subsection (2) of Section 30 of the I&B Code. Only thereafter, the Adjudicating Authority can grant its approval to the plan. It is at this stage, that the plan becomes binding on Corporate Debtor, its employees, members, creditors, guarantors and other stake....