TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 427
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.... Debtor-M/s. Sintex BAPL Limited. The Corporate Debtor has been admitted in Corporate Insolvency Resolution Process (in short "CIRP") vide order dated 18.12.2020. The application i.e., IA/374(AHM)2022 is for direction to the Interim Resolution Professional (in short "IRP")-Mr. Ketulbhai Ramubhai Patel to constitute the Committee of Creditors (in short "CoC") and call CoC's meeting whereas IA/413(AHM)2022 in IA/374(AHM)2022 is filed by Suspended Management of the Corporate Debtor for rejection of IA/374(AHM)2022 on the ground that the Hon'ble NCLAT in its order dated 04.01.2021 directed that CoC shall not be constituted for one week and the order is still continuing. 2. In order to understand the exact controversy, we have to take n....
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....as prolonged, this Adjudicating Authority directed the IRP not to constitute the CoC as per directions of the Hon'ble NCLAT for a further period. 6. This Adjudicating Authority allowed IA No. 18(AHM)/2021 by recording the settlement and setting aside the CIRP of the Corporate Debtor vide order dated 29.06.2021. That order has been challenged by KKR India Financial Services Limited in appeal, bearing Company Appeal (AT) (Insolvency) No. 475 of 2021. On 12.07.2021 the Hon'ble NCLAT passed the order of admission of appeal for hearing. Hon'ble NCLAT passed further order and directed that:- "....In the meanwhile, we stay the impugned order and direct that status quo ante-before passing of the impugned order dated 29th June, 2021 s....
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.... the Corporate Debtor-M/s. Mahatva Plastic Products And Building Materials Private Limited (applicant in IA No. 374 of 2022) submitted that the IRP is directed to proceed with CIRP. However, IRP refused to constitute the CoC, and hence, this application is filed. All other Learned Counsels appearing for the other Financial Creditors i.e., SBI, M/s. KKR India Financial Services Limited, and Asset Reconstruction Company (India) Limited, etc. adopted the contention and submission of Learned Senior Counsel Mr. Navin Pahwa. 10. We heard Learned Senior Counsel Mr. Saurabh Soparkar for the IRP. We also heard Learned Counsel Mr. Arjun Sheth at length for the Suspended Management of the Corporate Debtor. 11. Learned Counsel Mr. Arjun Sheth for the....
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....constitute the CoC and he does not wish to commit contempt of that order. However, he leaves the matter to this Adjudicating Authority. 14. Learned Counsel Mr. Arjun Sheth for the Suspended Management submitted that as on today the IRP is in charge of the assets of the Corporate Debtor. The CIRP is still going on. If the CoC is allowed to constitute then the interests of the Suspended Management will affect prejudicially. Their appeal pending for consideration of the Hon'ble NCLAT for setting aside the CIRP itself would become infructuous. This application is not maintainable. 15. We have noted the order passed by this Adjudicating Authority and the Hon'ble NCLAT as above. We considered the submissions of Learned Counsels. 16. To....
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....order to maintain the status quo ante of not constituting the CoC was subject to further order being passed by the Hon'ble NCLAT in the appeal. That same appeal came up for hearing before the Hon'ble NCLAT on 24.08.2021 in Company Appeal (AT) (Insolvency) No. 475 of 2021 (at page No. 103 in IA 374 of 2022 in CP(IB) No. 759 of 2019) wherein the Hon'ble NCLAT passed the order that "will consider the next application on next date. We make it clear that the RP in this case may continue CIRP". In short, The earlier order not to constitute CoC was not extended by the Hon'ble NCLAT thereafter, and the IRP and other stakeholders are bound by this order. 19. We have already noted that one of the Financial Creditors M/s. KKR India Fi....