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2020 (9) TMI 1003 - NATIONAL COMPANY LAW TRIBUNAL, SPECIAL BENCH, MUMBAIApproval of scheme of compromise or arrangement - section 230(2)(a) and (c) of Companies Act - the proposed Scheme has not been consented to by 75% of the Secured Creditors - Creditors Responsibility Statement is not attached to the CA - no statement made in the CA with regard to safeguards for protection of other secured and unsecured creditors - report by the auditor of Liquidity test not attached - Valuation report in respect of the shares and the property by a registered valuer is not attached - terms of the Scheme contemplate a debt restructuring of the financial creditors in addition to Operational Creditors. HELD THAT:- This Bench has considered the affidavit filed by the Respondent Company as well as its authorised representative. Suffice it to say that we do not find the explanations altogether convincing. This is especially due to the fact that Mr Vijay Tiwari had seen and replied to the email dated 12.05.2020 much before the hearing on that very day started. Therefore, there is no way we can accept the submission that he simply ‘forgot’ to inform the Bench regarding IA No.904/MB.IV/2020, even after being informed of it on the morning of the hearing. He has also sought to pin the blame on the Respondent Company and his arguing counsel for the error on his part. The actions on the part of Mr Vijay Tiwari amount to obtaining orders of the Bench behind the back of the Applicant Bank. This cannot be encouraged. Further, as a professional, it does not behove Mr Vijay Tiwari to blame others for his mistake, when he is the professional on record representing the Respondent Company. However, considering that the authorised representative is young and that he has a long way to go in his career, we restrain ourselves from imposing any costs.We, however, advise him to be more careful in future. Considering all factors, the following further directions are hereby given: (a) The meetings referred to in this Tribunal’s order dated 12.06.2020 shall be confined to that of Operational Creditors alone, and shall not include the Financial Creditors, who are outside the purview of the proposed Scheme. (b) The sixty-day time limit to conduct the meetings shall now be counted from 27.07.2020 instead of 12.06.2020. (c) In case physical meeting of the Operational Creditors is feasible, the same shall be held within the local limits of Mumbai City. In case the meetings of the Operational Creditors are convened through any audio-visual means capable of being recorded, then the unedited raw footage of the meeting to be conducted by videoconferencing shall be preserved for record and also submitted to this Tribunal along with an affidavit to this effect. (d) It shall be the duty of the Respondent Company to ensure that the unedited raw footage of the meeting shall be preserved in good condition and that the same is not corrupted due to any reason whatsoever, whether technical or human. Any failure in this regard shall be viewed seriously. Application disposed off.
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