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2020 (10) TMI 330 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHISeeking recalling of Resolution Plan as approved - rejection on the ground that the networth criteria, which was crucial, was overlooked and certificate produced by the Respondent No.3 in regard to its networth was fraudulent and sham which vitiated the whole exercise and approval of said Resolution Plan - HELD THAT:- It is not in dispute that as per eligibility criteria laid down by the CoC the Resolution Applicant was required to have a networth of ₹ 5 crores. Appellant is aggrieved of acceptance of bid of Respondent No.3 on the score that the Respondent No.3 did not comply with the networth eligibility. In this regard, it is pointed out that the networth certificate dated 1st October, 2018 shows the networth of ₹ 637.40 lakhs as on 31st August, 2018 qua M/s. Vaibhav Build Tech Pvt. Ltd., JSV Motors & Constructions Pvt. Ltd. - It is brought to our notice that the Appellant has participated in Committee of Creditors’ meeting during CIRP process but never raised the issue with regard to the eligibility of Respondent No.3 as regards networth criteria. It is too late in the day to accept the argument emanating from the Appellant that the networth of the Resolution Applicant calculated on the basis of market value of fixed assets minus secured loans is not in accordance with the definition of networth under Section 2 (57) of the Companies Act, 2013. No objection to calculation having been raised at the relevant time and the criteria adopted for arriving at the conclusion in regard to networth not being shown to be fundamentally flawed and perverse, argument raised on this score is repelled. No objection on this score can be permitted to be raised by the Appellant after the Resolution Plan has been approved by the Committee of Creditors with huge majority of voting share. Objection in regard to valuation conducted by the Resolution Professional and approved by the Committee of Creditors is equally without substance. It is not disputed that two registered Valuers were appointed to determine fair value and liquidation value of the Corporate Debtor. Such valuation reports were placed before Committee of Creditors which in its 6th meeting held on 18th July, 2019 considered the same before approving the Resolution Plan. Implementation of the approved Resolution Plan is underway. Respondent No.3 is stated to have already deposited an amount of ₹ 30 lakhs being 5% of cash contribution of the Resolution Plan having total value of ₹ 22.10 crores. An upfront payment of ₹ 3 crores besides investment of ₹ 4.5 crores on building infrastructure for setting up plant and machinery for the Corporate Debtor is said to have been made by Respondent No.3 - The Appellant cannot be permitted to scuttle the process at this stage and that too without substantial grounds. No material irregularity in resolution process vitiating it, has been canvassed or brought to our notice, which would render the whole exercise unsustainable. The impugned order does not suffer from any legal infirmity or factual frailty - Appeal dismissed.
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