TaxTMI 
TaxTMI 
2022 (5) TMI 80
X X X X Extracts X X X X
X X X X Extracts X X X X
....owing reliefs: i. Declare that the Committee of Creditors allegedly formed with just two creditors, as premature and invalid, especially given the fact that many States in which the Applicant's creditors are spread across, were under Government imposed lockdown thereby facing practical difficulties in lodging their claims with the Interim Resolution Professional on time; ii. Invalidate the first meeting of the Committee of Creditors held on 19th May 2021; iii. Declare the minutes of the meeting of CoC on 19th May 2021, void for all purposes of law under CIRP. The brief facts of the case are as under: - 2. The Company Petition No. IBA/41/KOB/2020 was filed under Section 7 of I&B Code,2016 by the Financial Creditor Dhanlaxmi Bank Limited for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. Vide order dated 09th April 2021 this Tribunal admitted the petition and initiated the CIR Process against the Corporate Debtor. 3. Pursuant to the above Order, CIRP against the Corporate Debtor was initiated and Mr. Jasin Jose was appointed as the Interim Resolution Professional ('IRP'). Subsequent, to the same, Pub....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts including the suspended directors on 14. 05.2021 intimating the 1st CoC meeting. On the day of CoC meeting (19.05.2021), the Dhanalaxmi Bank submitted through email a FORM FA (Withdrawal application) under Regulation 30A and informing that the dues of Dhanalaxmi Bank Ltd has been settled by the Managing Director of Orma Marble Palace Pvt Ltd (Corporate Debtor) in his personal capacity. IRP Placed the FORM FA as a table agenda item in the First COC Meeting but the CoC member SBI having a voting share of 86% directed to call for a separate CoC meeting to place the FORM FA for consideration. On the same day,the IRP received a stay order from the Hon'ble Kerala High Court staying the NCLT order. 6. It is further stated that as per the Audited Financials for the year ended on 31.03.2020 total claim outstanding of financial institutions is only of Dhanalakshmi Bank, State Bank of India, India Bulls Housing Finance Limited and Reliance Home Finance. Out of it, 2 financial institutions namely, State Bank of India and Dhanalakshmi Bank submitted their claims before the Interim Resolution Professional. Even though operational creditors can form part of CoC, they don't have any voti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that was Admitted and CIR processinitiated, there should be 90% consent from the CoC Members. SBI holding 86% of voting right has not consented to the withdrawal application. Thus the withdrawal of CIR process against the Corporate Debtor could not materilize. 12. The contention of the applicant herein, who is the Corporate Debtor is that the public announcement was made during the spread of Covid-19. In view of this the Resolution Professional should have extended the last date for receipt of claims. Even though Operational creditors can form part of CoC they don't have any voting rights. Even after the completion of 235 days of CIR process, only 2 Operational Creditors have submitted their claims and no other Financial Creditors have submitted the claims. 13. In the current scenario it is profitable to quote Regulation 12of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 as under:- 12. Submission of proof of claims. (1) Subject to sub-regulation (2), a creditor shall submit 30[claim with proof] on or before the last date mentioned in the public announcement. (2) A creditor, who fails ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it claim with proof within the time stipulated in the public announcement, may submit the claim with proof to the interim resolution professional or the resolution professional, as the case may be, on or before the ninetieth day of the insolvency commencement date.If the applicant/Corporate Debtor was vigilant and interested to submit any claims he should have explored the possibility of the Regulation mentioned hereinabove. Instead, he wants to stay the procedure adopted by the Resolution Professional and invalidate the CoC meeting. The applicant herein is exploiting the benefit under Covid-19 pandemic and trying to destroy the very purpose of the I&B Code,2016. 180 days is a long period now with all the advantages of modern technology and well-informed brains. Going forward, a CIRP could possibly be completed in a few days or even hours, particularly with the use of artificial intelligence. 17. Considering the present stage of the CIRP and the Resolution Professional had already given ample opportunity to the claimants to file the claims, if any, and updated the list of creditors vide order dated 26th November 2021 as on 28.10.2021 and that a Resolution Plan has already been u....