TaxTMI 
TaxTMI 
TaxTMI 
2022 (3) TMI 636
X X X X Extracts X X X X
X X X X Extracts X X X X
....ting the Resolution Plan of the Applicant as illegal. ii. To direct the Resolution Professional to place the Resolution Plan of the Applicant before the Committee of Creditors (CoC). The reasons for seeking this Tribunal to direct the Resolution Professional (RP) to place the resolution plan of the Applicant before the Committee of Creditors (CoC) is based on the contention that the Resolution Plan submitted by the Applicant was not placed before the CoC and the Resolution Professional (RP) unilaterally disqualified the Applicant on the ground that the Applicant is a connected party to an undischarged insolvent. 2. The facts briefly, as set out in the petition are as follows: i. M/s. VST Weaves (India) Private Limited, an Operational ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onal list and final list of the Resolution Applicants were published based on the declaration of the Applicant's and the same are subject to verification of Section 29A eligibility. The verification under Section 29A was entrusted to M/s. Sanjay and Co LLP Chartered Accountants. The Report submitted by them disclosed that the Applicant is a Director in M/s. Spads Textiles Limited which has been declared as undischarged insolvent. As per IBC it is not necessary for the Resolution Professional (RP) to issue any notice or seek any explanation from the Resolution Applicant as the information given by the Chartered Accountant has been crosschecked by the Resolution Professional (RP) in the public domain of IBBI. Inspite of the Corporate Debt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mentation and supervision of the Resolution Plan, to see that it does not contravene any of the provisions of the law for the time being in force, confirms to such other requirements as may be specified by the Board. 6. The counsel contends that by virtue of Section 30(3) the Resolution Professional (RP) has a mandate of statute to place the Resolution Plans which confirms to the conditions referred to in Sub-Section 2 before the CoC. The contention of the Respondent's Counsel is not that the plan does not confirm to any other conditions under Sub-Section 2 except Sub-Section 2(e) i.e., to contravene any of the provisions of the law for the time being in force. He contends that since the Resolution Applicant is a Director in a Company ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., it would be a futile exercise, since, the Resolution Plan of the Successful Resolution Applicant is already accepted by the CoC. But it has to be said that the approval of the Resolution Plan was done before considering the plan of the Applicant. 8. The Counsel for the Applicant relies on the judgment of the NCLAT, Chennai in Company Appeal (AT) (CH) (INS) No. 228 of 2021 between Everest Oranics Ltd. Vs. Leesa Lifesciences Pvt. Ltd., and others, wherein the grievance of the 3rd Respondent therein that the RP has not afforded any opportunity to cure the defect with regard to the eligibility under Section 29A(e) of IBC and the RP suo-moto rejected the Application holding that it is ineligible under Section 29A was addressed. It was held th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 39 the CoC has power to approve the Plan. After approving the plan by the Committee the Resolution Professional (RP) shall submit to the Adjudicating Authority. It was finally held that the CoC has power to decide and approve the Resolution Plan of the Resolution Applicant's and CoC also can consider the eligibility/ineligibility of the Resolution Applicants under Section 29(A)(e) of the Code. Hence, since the law is made very clear with regard to placing of the Resolution Plan before the CoC before disqualifying any of the Applicants under any of the Provisions of law and under Section 29A of IBC which is the case with the Applicant present before this Tribunal, by answering this point infavour of the Applicant, this Tribunal is incli....