TaxTMI 
TaxTMI 
2026 (2) TMI 440
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....nal, Ahmedabad, Court - II) in I.A. No. 159/2020 & I.A. No. 717/2025 in C.P. (IB) No. 157/2018. By the impugned order, the adjudicating authority has allowed I.A. No.159/2020 approving the resolution plan submitted by the appellant and has rejected I.A. No. 717/2025 filed by the appellant. 2. Brief facts of the case necessary to be noticed for deciding the appeal are: i. The corporate debtor - GPT Steel Industries Ltd. was put to Corporate Insolvency Resolution Process (CIRP) by order dated 02.05.2019. ii. Appellant submitted the resolution plan which came to be approved by the Committee of Creditors (CoC) with 82.41% voting shares on 18.02.2020. iii. H-2 bidder one Pancha Tatva Promoters Pvt. Ltd. filed an appeal against the approval of the resolution plan. iv. Resolution Professional (RP) filed an I.A. No. 159/2020 for approval of the resolution submitted by the appellant. The CoC filed an I.A. No. 239/2022 seeking direction that resolution plan of SRA be remanded back to CoC to enable the CoC to reconsider all the resolution plans. v. Adjudicating authority remanded the resolution plan to the CoC by order dated 27.07.2022 and dispo....
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.... deciding the I.A. filed by the RP against GIDC. RP and CoC has conducted the process arbitrarily had concealed the asset violation and lease termination notice. Inspection of site was denied. Resolution plan approved is at variance with the plan approved by the CoC and such variation has been made unilaterally by RP without informing the SRA. RP failed to submit Form-H with the plan approval application. 5. Learned counsel for the RP refuting the submissions of the counsel for the appellant submits that RP has shared the pleadings in the earlier appeal Comp. App. (AT) (Ins.) No. 1103/2024 filed by the RP and allegations of the appellant that pleadings were not shared is incorrect. The allegations of the appellant that it was denied inspection of the plant is also misleading and false. Appellant was invited to inspect the plant by email sent by the RP on 26.12.2024. There is no amendment in the resolution plan, allegation made by the appellant to the contrary is incorrect neither the RP nor CoC has ever amended/modified or altered the resolution plan which was approved by CoC on 18.02.2020. The show cause notice dated 07.04.2022 issued by GIDC was challenged by RP before the adj....
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....rity in IA No.159/NCLT/AHM/2020 is set-aside. • IA No.159/NCLT/AHM/2020 is revived before the Adjudicating Authority for fresh consideration in accordance with law. The application being pending for more than four years, the Adjudicating Authority shall endeavour to dispose of the application - IA No.159/NCLT/AHM/2020 at an early date." 8. The termination notice issued by GIDC terminating the lease deed has been set aside and the lease is revived and the corporate debtor still continues to hold the lease. I.A. 159/2020 was revived by order dated 21.03.2025 for fresh consideration and accountment to the order dated 21.03.2025 parties were heard on I.A. No. 159/2020 and by the impugned order I.A. No. 159/2020 has been allowed and resolution plan approved. 9. The submission of the counsel for the appellant is that status of lease deed has become uncertain due to breaches committed with respect to asset and appellant in future may likely to face an adverse action by GIDC. The status of lease land was clearly reflected in the CIRP process. Appellant who is SRA had given its resolution plan knowing fully well that corporate debtor holds a lease of 99 years. The show ca....
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....pondent No.1 to make appropriate application for exclusion of time consumed beyond statutory timelines; e) Direct Respondent No.2 to give undertaking that they will not terminate the lease on any ground unless the same is attributable to the Applicant; f) To declare the exercise of the Resolution of the Corporate Debtor has become infructuous as the only asset of the Corporate Debtor is on lease and such rights could not be transferred in light of the judgment passed by the Hon'ble NCLAT in Deepak Sakharam Kulkarni & Anr. Vs Manoj Kumar Agarwal, Resolution Professional of D.S. Kulkarni Developers Ltd. & Ors., bearing Company Appeal (AT) (Insolvency) No. 63 of 2024, g) Pass any such other order(s) as may be deemed fit and proper by this Hon'ble Tribunal in the facts and circumstances of the case." 11. The adjudicating authority in the impugned order has noticed the application filed by the appellant in paragraph 19 and has also noticed prayers made by the appellant in paragraph 19. Adjudicating authority has noticed the submissions of parties and made observations in paragraph 22 which are as follows: "22. We have perused the various su....
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....;ble NCLAT has passed the order, it is clear that in compliance of the order, GIDC has no further course of rebuttal in this matter as the stated order passed in 2022 becoming an order during moratorium period does not survive. The SRA stated that he was not part of the pleadings and has not appealed against the order passed before the higher authority being the Hon'ble Supreme Court. In the IA filed against GIDC, the SRA was not a party to the matter but this Tribunal had heard the plan and the other IA together before orders were passed, in which SRA had an opportunity to appear and submit. Repeated litigations have accounted for the delay and insistence of the RP to wriggle out of the plan submitted due to the action of COC are now set right by the orders of the Hon'ble NCLAT and our adjudication of this matter as regards the resolution plan. Once the resolution plan is approved after due diligence and following procedures on the plan of the SRA, the decision of adjudication is limited to provisions in IBC. On admission of this application, the necessary safeguards needed for the SRA to run this entity as a going concern in terms of the provisions of IBC will be provided....