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2022 (4) TMI 373 - AT - Insolvency and BankruptcyApproval of Resolution Plan - requirement of inclusion of the Respondent No.3 in the list of Prospective Resolution Applicants or not - convention of meetings for Scheme of Arrangement - HELD THAT:- As per Form- ‘G’ published, the last date for submission of the Expression of Interest was 31.12.2020. The list of Prospective Resolution Applicants was also uploaded. It is true that in the 18th meeting of the CoC dated 02.03.2021, the CoC took note of the three Resolution Plans which were received from ‘Mainthan Alloys Limited’, ‘ESL Steel Limited’ and ‘Rimjhim Ispat Private Limited’. However, minutes of the 18th meeting of the CoC indicate that Resolution Plans were not voted upon in the said meeting. Similarly, in the 19th CoC meeting dated 08.03.2021 detailed discussion was made on the Resolution Plans received from the Resolution Applicants. The minutes under Agenda Item No.5 noticed that Applicants were requested to reconsider the financial proposal made by them. On 20.03.2021, the Resolution Professional issued a final list of the Prospective Resolution Applicants in which Respondent No.3 was also included - delay in submission of Expression of Interest by ‘Tata Steel Mining Limited’ was condoned by the CoC in its meeting held on 18.03.2021 and e-voting results dated 20.03.2021. It is well settled that the commercial wisdom of the CoC is to be given due regard. The CoC having decided to condone the delay in submission of Expression of Interest by Respondent No.3 and to include the Respondent No.3 in the list of Resolution Applicants, no exception can be taken by the Appellant to the decision of the CoC. The object of the IBC is to maximise the assets of the Corporate Debtor and as noted above, in the 19th CoC meeting, earlier Resolution Applicants were requested to revise the financial proposal. Thus, by the time Respondent Nos.3 was permitted to submit a Resolution Plan neither any Resolution Plan was accepted nor even put to e-vote. Hence, the commercial wisdom of the CoC to accept the Respondent No.3 as Prospective Resolution Applicant cannot be faulted. The submission raised by the Appellant on the basis of Scheme of Arrangement under Section 230 of the Companies Act, 2013 was elaborately considered by the Adjudicating Authority and it has been rightly held that the said Scheme having never been approved by the Creditors cannot come to any benefit of the Appellant and further after initiation of the CIRP, the present Appellant who is Suspended Director of the Corporate Debtor is hit by Section 29A of the Code. The submission of the Learned Counsel for the Appellant, thus, on the basis of Scheme of Arrangement under Section 230 of the Companies Act, 2013 has no substance. The Adjudicating Authority by a very elaborate and well considered order has discussed all the submissions which were raised on behalf of the Appellant and has rightly rejected the submission. The Order passed by the Adjudicating Authority is a well considered order which needs no interference by us in exercise of our Appellate Jurisdiction. There are no merit in the appeal - appeal dismissed.
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