Wednesday, 14 October 2020

Darshak Enterprise Pvt. Ltd vs. Chhaparia Industries Pvt. Ltd. & Ors - Commercial decision of CoC, Approval of Resolution Plan

NCLAT (02.05.2018) in  Darshak Enterprise Pvt. Ltd  vs. Chhaparia Industries Pvt. Ltd. & Ors [Company Appeal (AT) (Insolvency) No. 327 of 2017] held that; in a particular case, what should be the percentage of claim amount payable to one or other ‘Financial Creditor’ or ‘Operational Creditor or ‘Secured Creditor’ or ‘Unsecured Creditor’ can be decided by the Committee of Creditors based on facts and circumstances of each case. In absence of any discrimination or perverse decision, it is not open to the Adjudicating Authority or this Appellate Tribunal to modify the plan

 

Excerpts of the order;

# 02.05.2018 Both the appeals have been preferred by the appellant(s) (‘Operational Creditor’) against the order dated 29th September, 2017 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench in M.A. No. 349/2017 in C.P. No. 23/I&BP /NCLT /MB /MAH /2017 whereby and whereunder the Adjudicating Authority approved the ‘Resolution Plan’ with the following observations:

  • “ # 8. On perusal of this Resolution Plan, this Bench being satisfied with the valuation ascertained by the Registered Valuer appointed by the Insolvency Resolution professional in respect of the properties of the Corporate Debtor for all valuations are contemporaneous with the sale transactions happening in the vicinity where the Corporate Debtor is located, whereby this Bench hereby approved the Resolution Plan filed by the Insolvency Resolution professional.

  • # 9. Accordingly, MA No. 349/2017 is hereby allowed by vacating the moratorium already granted at the time of the admission of the Company Petition 23/2017 and extension given on 23.8.2017.

  • # 10. In view of the approval given to the Resolution Plan filed by the Insolvency Resolution Professional, this Bench hereby discharges the Insolvency Resolution Professional from the duties of the Insolvency Resolution process by submitting all the records maintained by the Insolvency Resolution professional before Insolvency and Bankruptcy Board of India, as prescribed under law.”

 

# 6. In these cases as we find that in spite of receipt of their claim much beyond the period prescribed under the I & B Code, the ‘Resolution Plan’ has taken care of the claim of the appellants, we are not inclined to interfere with the order passed by the Adjudicating Authority. In a particular case, what should be the percentage of claim amount payable to one or other ‘Financial Creditor’ or ‘Operational Creditor or ‘Secured Creditor’ or ‘Unsecured Creditor’ can be decided by the Committee of Creditors based on facts and circumstances of each case. In absence of any discrimination or perverse decision, it is not open to the Adjudicating Authority or this Appellate Tribunal to modify the plan.

 

Disclaimer: The sole purpose of this blog is to create awareness on the subject and must not be used as a guide for taking or recommending any action or decision. A reader must do his own research and seek professional advice if he intends to take any action or decision in the matters covered in this blog.


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Disclaimer:

The sole purpose of this post is to create awareness on the "IBC - Case Law" and to provide synopsis of the concerned case law, must not be used as a guide for taking or recommending any action or decision. A reader must refer to the full citation of the order & do one's own research and seek professional advice if he intends to take any action or decision in the matters covered in this post.