Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (2) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 215 - Tri - Insolvency and BankruptcyInitiating Corporate Insolvency Resolution Process against the Corporate Debtor - constitution of CoC - it was alleged that RP falls to perform his statutory duties to collect information as to whether any or more members of the CoC is/are party /parties related to the CD - Held that:- The Code has certainly cast an obligation on the RP to ascertain if any member(s) of the CoC is/are related to the CD. He is also expected to do necessary investigation in this regard. However, such a duty cannot be stretched to such absurd limits requiring the learned RP to make investigation against each and every suspicion which may crop up while constituting the CoC regardless of whether or not such suspicion has any basis. None of the members of the CoC raised any query as to the constitution of CoC since the constitution of CoC on 29.05.2018 till the fag end of September, 2018. Only on 27-09-2018, after a gap of almost five months from the date of initiation of CIRP, the applicant (IDBI Bank) raised such contention. I have found that the applicant at first wanted information as to the KYCs of the promoters of the CD as well as information about the mortgagors. I have found that some of the information so sought for was furnished while inability was expressed in regard to furnishing of other information vide email dated 29-09-2018 from RP addressed to the applicant - The information, so furnished by the learned RP, is found to be incomplete. Also, the conduct of the applicant during the course of CIRP is also found far from satisfactory. There are indisputable materials on record to show that the applicant had also kept on asking the learned RP to furnish it with some information viz. liquidation value of the CD, and that too, at a stage, when law forbids the RP from sharing such information with anyone. Such conduct on the part of the applicant again shows that some considerations, other than valid one, might have driven the applicant to keep on hurling queries after queries on the RP in regard to allegation that one of the members of the CoC is a related party to the CD - the RP cannot be adjudged guilty of non-performing of his statutory duty qua constitution of CoC only because of the non-furnishing of the KYCs of the promoters of the CD. Rejection of Resolution Plan, submitted by the SMAIT, for the RP's violating the mandate of law in the form of Section 29(A)(c) of the Code of 2016 - Held that:- Such contention too is without any basis since the Resolution applicant is a AIF, registered with SEBI, which is exempted from the prohibition in Section 29(A)(c) of the Code of 2016 in view of law laid down in Explanation (e) to sub-clause (f) section 29A(c) of the Code. The Final Resolution Plan is in conformity with the provisions of Section 30 (2) of the IBC, 2016 and the same is approved.
|