Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (6) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (6) TMI 809 - NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCHInvocation of arbitration proceedings - valuation of the respondent-financial creditor's OCRPS - right of the respondent-financial creditor to redeem such OCRPS when it had participated in the process to convert its OCRPS into equity shares of the applicant-corporate debtor - fixing of the QIPO date - HELD THAT:- It is not satisfying that a default has occurred. Mr. Mustafa Doctor's statements that the applicant-corporate debtor is a solvent, debt-free and profitable company. It will unnecessarily push an otherwise solvent, debt-free company into insolvency, which is not a very desirable result at this stage. The disputes that form the subject-matter of the underlying company petition, viz., valuation of shares, calculation and conversion formula and fixing of QIPO date are all arbitrable, since they involve valuation of the shares and fixing of the QIPO date. Therefore, an attempt must be made to reconcile the differences between the parties and their respective perceptions. Also, no meaningful purpose will be served by pushing the applicant-corporate debtor into CIRP at this stage. It is further noted that the arbitration petition bearing Arbitration Case No. 48/2019 filed by the applicant-corporate debtor is pending consideration before the hon'ble Supreme Court for appointment of an arbitrator. Petition admitted.
|