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2021 (11) TMI 843 - AT - Insolvency and BankruptcyCIRP Proceedings - Resolution plan - seeking directing to form a consolidated ‘Committee of Creditor’ (CoC) of the Corporate Debtor alongwith ‘parent company’ and the Corporate Debtor etc. - HELD THAT:- It is an admitted fact that ‘debt’ and ‘default’ exists. The Corporate Debtor is in a bad financial health and has failed to execute the major project awarded to it by NHAI and there are huge costs overrun - the issue of limitations cannot be acceded too as the Balance Sheet of the corporate debtor as early as in the year 2018 acknowledges debt and Section 18 of Limitation Act, 1963 is applicable to the proceedings under the Code. Hence, the Appellant cannot be given advantage of the limitation also. Even the summary of financial linkage between the parent company and the SPVs cannot be examined on standalone mode. Even value of awards won by SPVs and ‘Financial Debt’ and other input cannot be examined as these are not the subject matter of the Appeal even remotely. The Code is silent on the issue of ‘Group Insolvency’ and only when input is available in respect of all subsidiary companies and holding company then only it can be examined and that too only with respect to the material available in the Appeal Paper book and relief sought. This Tribunal is the creature of the statute only and hence, it has to work within the framework of the Code. As far as filing of claim by the Respondent and withdrawing the claim, thereafter, is the prerogative of the Bankers at its own risks and based on its own evaluation. The claim has been withdrawn and permitted by the ‘Adjudicating Authority’. Hence, this issue is not of much consideration in the present appeal. Each member of CoCs have an independent mechanism for evaluation considering its own benefits and risks - it is amply clear that the Appellant has to prove the fraudulent or malicious intent and has to file specific application under Section 65 of the Code. The Appellant has not done so. Hence, this Tribunal cannot accede to the request of the Appellant to annule the proceedings. The Adjudicating Authority vide Section 7(5)(a) is fully satisfied from their observations in the impugned order that a ‘Debt’ beyond the threshold limited of the Code exists and ‘Default’ has occurred and the Application complied with the relevant applicable regulations and hence, thereafter, admitted the application. Appeal dismissed.
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