2024 (8) TMI 1702

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....rofessional to hand over the entire business and all assets along with the management and control of the Corporate Debtor to the Successful Resolution Applicant including allowing the Successful Resolution Applicant to operate all the bank accounts of the Corporate Debtor independently; b. Restrain the Respondents to make such undue alleged demand of Rs. 25.96 Lakh i.e., difference in amount payable and paid to the UCO Bank (dissenting financial creditor) at the time of upfront payment made by the Applicant/ SRA on 15/12/2021; c. Compensate the Applicant for all legal expenses incurred on account of persuading this present application seeking direction/ intervention from this Adjudicating Authority for the smooth implementation of the approved resolution plan; and d. Any other direction may deem fit and proper." 2. The Appellant is aggrieved against the order dated 20.12.2023 passed by the Adjudicating Authority in respect of prayer (b) which read as under:- "In regard to the surplus amount of Rs. 25.96 lakh, the CoC of the CD shall address the issue pragmatically before its table and shall take a holistic view in accordance with law." 3. B....

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....ing on behalf of the Respondent has submitted that the Appellant was to pay Rs. 440 lakh to the assenting financial creditors who have been paid only 201.35 Lakh (Indian Bank) and 155.72 Lakh (PNB), total amounting to Rs. 357.02 Lakh. It is further submitted that the amount in question cannot be retained by the Appellant being SRA as it has to go to the kitty of the financial creditors. In this regard, he has also relied upon a decision of the Hon'ble Delhi High Court in the case of Tata Steel BSL Limited Vs. Venus Recruiter Pvt. Ltd., 2023 SCC OnLine Del 155. He has argued that though this decision is not squarely on the issue involved but in that case the money which became available after the resolution plan, on the adjudication of the avoidance application, will not go to the pocket of the SRA but it shall be distributed amongst the CoC. In this regard, he has pressed para 80 and 90 of the said decision which are reproduced as under:- "80. The Ld. Single Judge operates on the assumption that the sum or property acquired upon adjudication of the avoidance application will be appropriated by the corporate debtor in its new avatar. As laid down above, the provisions ....

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....Hem Singh (Supra) is concerned, it was a case where an appeal was filed by the ex- promoter of the CD who had been unsuccessful before the AA in its application to keep in abeyance of the decision on the application filed by the RP for approval of the resolution plan. There was an issue of revised settlement proposal made under Section 12A and the question was framed that 'whether after approval of the resolution plan by CoC under Section 30, sub-section (4) and filing an application before the AA for its approval, any settlement proposal under Section 12A (filed by ex-promoter) can be entertained deferring consideration of approval of resolution plan by the AA?' This question has been decided against the Appellant in the said appeal, therefore, judgment in the case of Hem Singh (Supra) is not applicable to the facts of the present case. On the contrary, in the case of Tata Steel BSL Limited (Supra), the Hon'ble Delhi High Court has held that the amount accruing on the adjudication of the avoidance application will go to the financial creditors which shall be decided by the CoC. In the present case, the AA has not tinkered with the resolution plan because it has already been decide....

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....ttlement and satisfaction of all claims of Allahabad Bank (Presently Indian Bank) against its dues towards the CD. On receipt of the settlement amount, the Allahabad Bank (now known as Indian Bank) shall completely discharge and release the CD from all its liabilities and also issue "No Dues Certificate" to the CD. Entire admitted dues of Oriental Bank of Commerce (now known as Punjab National Bank)for Rs. 54,18,43,117/- (Rupees Fifty Four Crores Eighteen Lakhs Forty Three Thousands One HundredSeventeen only) will be settled on full and final basis by payment of Rs. 15571120/- (Rupees One Crores Fiftyfive Lakhs SeventyoneThousand OneHundred Twenty Only) (settlement amount) and the same will be paid in a spread over period of 6 months from the Effective date, with the initial payment of Rs. 3114224/- (Rupees Thirtyone Laichs Fourteen Thousands Two Hundred Twentyfour only) to be paid with in 30 days of the Effective The Resolution Applicant proposes to pay to all the creditors of the CD (Operational Creditors including, statutory Dues and Financial Creditors including dissenting financial creditors, if any. The RA proposes to pay an amount Rs 515.00 lakhs to the different c....