2023 (2) TMI 486

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2 passed in I.A. 1528/ND/2022 in C.P. No. IB-1526/ND/2019 by which order the Adjudicating Authority (National company Law Tribunal), New Delhi Bench, has dismissed the I.A. 1528/ND/2022 filed by the Resolution Professional for approval of the Resolution Plan and has directed for liquidation of the Corporate Debtor namely Ajanta Offset packaging Limited. Brief facts of the case giving rise to this Appeal are: (i) The Adjudicating Authority vide order dated 04.02.2020 initiated CIRP process against the Corporate Debtor. (ii) On 19.08.2020, the Resolution Professional issued Form G calling for Expression of Interest (EOI) from interested Resolution Applicants. In response to which two EOIs were submitted. (iii) Both the plans were discussed by the CoC in its 3rd meeting and were found to be not feasible and viable. The Resolution Applicants were called for negotiation. (iv) In the 4th meeting of the CoC, decision was taken to put the plans to e-voting, however, none of the plan can be approved. (v) On 01.06.2021, the Resolution Professionals filed an I.A. No. 1992/2021 seeking exclusion of 222 days. The Adjudicating Authority allowed certai....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... eligible. It is further observed that registration of the Corporate Debtor cannot operate retrospectively making them eligible. It is further held by the Adjudicating Authority that although Adjudicating Authority vide its order dated 28.09.2021 directed for deliberation as to whether Resolution Applicants may be invited but the CoC did not invite other Resolution Applicants which has denied level playing field to other Resolution Applicants. After coming to the aforesaid conclusion, the Adjudicating Authority held that the Appellants' Resolution Plan is not in compliance with the Code and CIRP Regulations. After coming to the said conclusion, the approval of Resolution Plan was set aside and order of liquidation was passed. 3. In this Appeal notices were issued by this Tribunal on 14.09.2022, where an interim order was also passed directing the Liquidator not to take further steps in pursuance of the impugned order. 4. Learned counsel for the Appellant challenging the order impugned contends that the Adjudicating Authority having directed on 28.09.2021 to consider the Resolution Plan submitted by the Appellant which was duly considered by the CoC and approved, the said appr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s and perused the record. 8. From the facts as noted above, it is clear that Form G was issued by the Resolution Professional on 19.08.2020 in pursuance of which two Resolution Applicants filed the Resolution Plan which were considered but were not approved by the CoC and Resolution was also passed by the CoC on 05.06.2021 for liquidation and an application was filed for liquidation by the Resolution Professional on 02.07.2021, on which application notices were issued and it was only at that stage when Appellants have filed I.A. No. 4388/2021 seeking direction to permit the Appellants - Suspended Directors to submit Resolution Plan for revival of the Corporate Debtor. The Adjudicating Authority passed an order on 28.09.2021. It is useful to notice the order dated 28.09.2021, which is to the following effect: "ORDER Application filed by the proposed Resolution Applicant who is the ex- management of the Corporate Debtor seeking to allow the Resolution Plan of the ex-management to be placed before CoC for consideration and also seeking extension of CIRP by further 90 days or such from time which the Tribunal may deem fit. Learned Counsel for the applicant states t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Appellants. However, CoC did not decide to issue any fresh Form G and invite any other Resolution Applicants, which act of the CoC has been adversely commented by the Adjudicating Authority. 10. The Adjudicating Authority has rightly taken the view that the order dated 28.09.2021 of the Adjudicating Authority directing consideration of Resolution Plan of the Appellants was required but the CoC has to consider other Resolution Applicants also. We have already noticed that registration of MSME of Corporate Debtor obtained on 30.08.2020 that is much after issuance of Form G. We are of the view that the Adjudicating Authority vide order dated 28.09.2021 gave opportunity to the Resolution Professional and the CoC to take steps to revive the Corporate Debtor. The Adjudicating Authority is right in its observation that the CoC ought to have taken steps in accordance with provisions of CIRP Regulations. In Para 42 of the impugned order, the Adjudicating Authority made following observations: " 42. On perusal of Resolution Plan submitted by the Successful Resolution Applicant specifically clause 4.2 of the plan, we observe that with regard to the Compliance of Section 29A of....