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2022 (10) TMI 431 - NATIONAL COMPANY LAW TRIBUNAL , CHANDIGARH BENCHRejection of Resolution Plan in view of the disqualification provided under Section 29-A (f) of the Insolvency and Bankruptcy Code, 2016 - seeking direction to Resolution Professional to place the present Applicant’s Resolution Plan for consideration before the Committee of Creditors and any other order as deemed fit - if the Committee of Creditors had rejected the resolution plan of Aggarsain Spinners Limited, erstwhile Successful Resolution Applicant before its approval on 27.03.2019, being ineligible under Section 29A of the Code then what procedure the Resolution Professional or the Committee of Creditors would have adopted in that eventuality? HELD THAT:- After the rejection of the Resolution Plan submitted by Aggarsain Spinners Limited, erstwhile Successful Resolution Applicant, there were other three Resolution Plans, namely Navraj Mittal and Others- H2; M/s Shivani Trendz Private Limited- H3; and Pankaj Bhatia & Shreeji Cotfab- H4 and obviously, these Resolution Plans were to be considered by the Committee of Creditors and all the three Resolution Applicants were required to be called for negotiations and for maximization of the value of the assets of the corporate debtor. Now, when the Resolution Plan of Aggarsain Spinners Limited has been rejected by this Bench, being ineligible under Section 29A(f) of the Code, then certainly to meet the ends of justice an opportunity is required to be given to the remaining three Resolution Applicants, who submitted their resolution plans simultaneously with erstwhile Successful Resolution Applicant- Aggarsain Spinners Limited. Although, it is contended by learned counsel for the respondents that if the earlier resolution plans are to be considered then it would amount to review of order dated 24.05.2022. More so, earlier resolution applicants including the present applicant do not meet the fresh eligibility criteria laid down by the Committee of Creditors. This contention of learned counsel for the respondents does not hold water because there is nothing on record that the new eligibility criteria is based upon any evaluation matrix. It is pertinent to note that the Resolution Professional had moved an application bearing IA No.639 of 2022 under Section 60(5) of the Code read with Rule 11 of the NCLT Rules, seeking appropriate directions to the Resolution Professional to reappoint the existing valuers duly registered with IBBI in order to ascertain fair value and liquidation value afresh in terms of Regulation 35 of the IBBI (CIRP) Regulations, 2016 but later on the said application bearing IA No.639 of 2022 was withdrawn by the Resolution Professional, as is recorded in order dated 21.07.2022 passed by this Bench. This shows that no fresh valuation of the assets of the corporate debtor was conducted. The contention of learned counsel for the respondents that the present application is hit by Regulation 36A(10) and (11) of the Regulations is also not much convincing. There is no dispute to the fact that purpose of resolution is for maximization of value of assets of the corporate debtor - the earlier resolution applicants including the present applicant may take part in the negotiation process before the Committee of Creditors and ultimately, Successful Resolution Applicant would be decided by the Committee of Creditor, which if found in consonance with maximization of value of the assets of the corporate debtor. The present application is partly allowed to the extent that Resolution Professional and Committee of Creditors are directed to invite the present applicant alongwith other earlier resolution applicants namely Navraj Mittal and Others (H2); M/s Shivani Trendz Private Limited (H3); and Pankaj Bhatia & Shreeji Cotfab (H4) and also fresh resolution applicants for the purpose of negotiations in finalization of Resolution Plan in accordance with law.
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