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2021 (11) TMI 871 - AT - Insolvency and BankruptcyApproval of Resolution plan - procedural breach in consideration of the Resolution Plan of the Appellant or not - HELD THAT:- It has been noted in the order of the Adjudicating Authority that by order passed on 04.04.2019, the Adjudicating Authority permitted ‘Kals Distilleries Private Limited’ to submit a Resolution Plan, hence the same was duly accepted by the Resolution Professional. On 11.04.2019, the Appellant sent a protest to the Resolution Professional regarding Resolution Plan of ‘Kals Distilleries Private Limited’ which protest was immediately replied by Resolution Professional on 12.04.2019 informing that the plan has been accepted by the order dated 04.04.2019 of the Adjudicating Authority. The Hon’ble Supreme Court in K. SASHIDHAR VERSUS INDIAN OVERSEAS BANK & OTHERS [2019 (2) TMI 1043 - SUPREME COURT] had occasion to consider the relevant provisions of the ‘I&B Code’, including the provisions of Section 30. With regard to commercial wisdom of the Financial Creditor, the Hon’ble Supreme Court laid down that there is an intrinsic assumption that financial creditors are fully informed about the viability of the corporate debtor and feasibility of the proposed Resolution Plan. There can be no doubt that any fraud in process may vitiate the entire process but it is easy to allege fraud and collusion but difficult to prove the same. Apart from the bald allegation of the Appellant that ‘M/s. Mahalaxmi Traders’ colluded with the ‘Successful Resolution Applicant’, there is no other material to come to a finding that actually any fraud was played. The commercial wisdom of the Financial Creditors cannot be disregarded on bald allegation of fraud and collusion as raised by the Appellant. The Adjudicating Authority has in detail considered the submissions of the Appellant and has rightly come to the conclusion that the decision of the CoC rejecting the Resolution Plan of the Appellant does not require any interference. None of the grounds to challenge the Resolution Plan had been made out. Hence the Adjudicating Authority rightly approved the Resolution Plan. No ground has been made out to interfere with the order dated 13.10.2021 of the Adjudicating Authority. Appeal dismissed.
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