TaxTMI 
TaxTMI 
2024 (5) TMI 205
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.... For the Respondents : Mr. S. Niranjan Reddy, Senior Advocate For Mr. Ramakant Rai, Advocate, For R1 Mr. Ramji Srinivasan, Senior Advocate For Mr. Abhishek Swaroop, Mr. Palash Agarwal, Ms. Bhawana Sharma, Ms. Namrata Sorangi, Advocates, For R2 to R9 & R12 Mr. Dhananjaya Sud, Advocate, For R10 Mr. T. Sundar Rajan & Ms. Bhargavi Sundar Rajan, Advocates, For R11 ORDER ( Hybrid Mode ) Justice M. Venugopal , Member ( Judicial ) : IA No. 353 / 2024 in Comp. App ( AT ) ( CH ) ( INS ) No. 400 of 2023 : Preamble : The Petitioners / Appellants / Financial Creditors, have preferred the instant IA No. 353 / 2024 in Comp. App (AT) (CH) (INS.) No. 400 of 2023, praying for an issuance of an 'Order', in directing the 'Respondents', to ....
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....'Committee of Creditors' and the 'Resolution Professional', had expressed their views, on the distribution mechanism for 'Resolution Plan Proceeds', which is under challenge in this 'Appeal', and canvassed that they intend to take no steps, to protect the interests of the 'Applicants' (which are also 'Members of the Committee of Creditors'), pending the outcome of the instant 'Appeal'. 5. The plea taken on behalf of the Petitioners / Appellants is that, despite the Petitioners suggestion, to reconsider mechanism for 'Resolution Plan Proceeds', the 'Resolution Professional' and the 'Committee of Creditors', have decided to proceed with the 'distribution of Resolution Plan Proceeds', in the manner - whose legality whereof is sub-judice in ....
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.... 'Proceeds', from the 'Resolution Plan', stand distributed amongst the 'Creditors' of the 'Corporate Debtor', and in the pending 'Appeal' for final decision, the 'Petitioners / Appellants', do have a strong chance of succeeding and they apprehend that ultimately there would not be any 'Proceeds', left for them, to receive their 'entitlement', in accordance with 'Law'. Therefore, in the interest of justice and fairness and also to protect the subject matter of the instant 'Appeal', and to ensure that the rights of the 'Petitioners / Appellants', are protected and are not prejudiced by the 'Committee of Creditors', and the 'Resolution Professional', it is necessary that the differential amount is placed in an 'Escrow Account' or with this 'Ap....
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....ought for by the 'Petitioners / Appellants', in IA No. 353 / 2024 in Comp. App (AT) (CH) (INS.) No. 400 of 2023, is not be acceded to, by this 'Tribunal'. Gist of Memo of Objections filed on behalf of R2 to R9 & R12 : 14. At the outset, this 'Tribunal', points out that on 01.05.2024, R2 to R9 and R12 were permitted to file 'Reply' to IA No. 353/2024 in main Comp. App. (AT)(CH)(Ins) 400 of 2023. But, the Respondent Nos. 2 to 9 and 12 have filed only the 'Memo of Objections' on behalf of (majority of CoC - R2 to R9 and R12), and not filed the 'Reply'. 15. Conversely, it is the submission of the Learned Counsel for R2 to R9 and R12 (majority of 'Committee of Creditors') that the interest of 'Petitioners / Appellants', are protected by....
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.... 8.32 (Full recovery 7.32 Total 277 543.28 # At the highest only if one were to apply DBS Bank Judgment, entitlement would be Rs.277 crores instead of Rs.95 crores and certainly not Rs.543.28 crores. 18. The Learned Counsel for R2 to R9 and R12, brings to the notice of this Tribunal that the 'Plan Approval Application', is pending in IA No. 06/ CHE/ 2024, before the 'Adjudicating Authority' / 'Tribunal' and once the 'Plan', is approved, the 'Successful Resolution Applicant', is required to implement the same in a given time period and make payments to the 'Financial Creditors'. Later, the money will be deposited into an 'interest bearing Fixed Deposit or Escrow Acco....