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2021 (8) TMI 1389 - AT - Insolvency and BankruptcySeeking approval of the Resolution Plan approved by the Committee of Creditors which plan was submitted by Respondent No.1 - Whether Resolution Plan has provision to transfer personal properties of the Appellants who had given their personal properties as security in favour of the Corporate Debtor, whom Corporate Debtor took loan? HELD THAT:- Under Section 61(3) of the IBC that the Resolution Plan as approved by the Adjudicating Authority is in contravention of the provisions of law and there have been material irregularities in exercise of powers by the Adjudicating Authority when it directed the Appellants, that the owners of the premises as mentioned in the judgment shall enter into Tripartite Agreements for transfer of the premises (as mentioned in para 18 of impugned order). In fact, if para 18 is seen, after describing the properties in the chart there is also portion added which says that the Financial Creditors shall be at liberty to proceed against the properties of the Promoters erstwhile Directors/ Guarantors “other than those mentioned above to recover their balance”. This, in the Resolution Plan would be blank cheque given to proceed even with regard to any other property also of the Personal Guarantors. Thus, without resorting to appropriate proceedings against the Personal Guarantors of Corporate Debtor this is irregular exercise of powers. The Resolution Plan approved by the Adjudicating Authority is rejected. All actions taken in consequence of the impugned order approving the Resolution Plan shall stand set aside - appeal allowed.
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