TMI Blog2020 (8) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... pending since long because of the Appellant Vishal Vijay Kalantri , the Promoter would have settled the matter with the creditors and also sought time, we are not inclined to determine the initial issue whether there was a pre-existing dispute or not. Even if, the proceedings is quashed on the pre-existing dispute , as admittedly there is a default of payment and it will regenerate other proceedings, which is not desirable. Admittedly, the Committee of Creditors now approved the plan as submitted by the APSEZL with 99.68% voting share and approved on 19th September, 2019. The impugned order dated 25th March, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench is upheld and the appeals preferred by Vishal Vijay Kalantri is dismissed and it is declared that both the appeals preferred by APSEZL as infructuous - The matter stands remitted to the Adjudicating Authority to pass appropriate order under Section 31 of the I B Code in accordance with law. - Company Appeal (AT) (Insolvency) Nos. 139 of 2018; 697 of 2019; 698 of 2019 and 722 of 2019 - - - Dated:- 12-3-2020 - [Justice S. J. Mukhopadhaya] Chairperson And [Justice Bansi L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervene on behalf of the CoC, as the Resolution Process is on-going. We allow him to file an Intervention Application within a week and make it clear that we have not stayed the Resolution Process, therefore, the Resolution Professional, Committee of Creditors and the Adjudicating Authority, in the meantime, may proceed in accordance with law. Place the case for orders on 1st August, 2018. 3. However, the matter was not finally settled between the Appellant Vishal Vijay Kalantri and the Respondent DBM Geotechnics and Constructions Pvt. Ltd. (Operational Creditor). The Appellant sought time to move an application under Section 12A of the I B Code . Therefore, the Company Appeal (AT) (Insolvency) No. 139 of 2018 remained pending and during the pendency of the Appeal, Corporate Insolvency Resolution Process continued. 4. Resolution Plan by Adani Ports and Special Economic Zone Limited ( APSEZL , for short) was declared as the highest evaluated compliant resolution plan and the same was put to the vote of Committee of Creditors on 31st January, 2019 and was rejected by 99.38% of votes by the Committee of Creditors . Subsequently, the Jawaharla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeting of the Committee of Creditors , it was decided that the resolution plans from all the three resolution applicants and the settlement proposal of Vishal Vijay Kalantri and other promoters of the Corporate Debtor be called and received on or before 4th September, 2019. Such meeting was held pursuant to the direction as was given on 21st August, 2019 by this Appellate Tribunal as JNPT was not agreed to proceed with the modified resolution plan as was approved. The Committee of Creditors decided that the Resolution Professional will write to the existing three resolution applicants i.e. (a) Jawaharlal Nehru Port Trust (JNPT); (b) Adani Ports and Special Economic Zone Limited (APSEZL ) and (c) Veritas India Limited and UV Asset Reconstruction Company Limited ( Veritas Consortium ) calling for the revised/improved/revalidated resolution plans. The Committee of Creditors also requested the Appellant to submit the Promoters Settlement Proposal under Section 12A within the time limits. 7. On 4th September, 2019 at the 20th Meeting of the Committee of Creditors , the Resolution Professional placed before the Committee of Creditors [i] the term sheet receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection12A of the I B Code for voting by the members of the Committee of Creditors . The Committee of Creditors further decided that, if in case the withdrawal is not approved by the requisite percentage of votes by the Committee of Creditors , then the Resolution Plan received from APSEZL be put to vote immediately thereafter. 11. The voting on the resolution for approval of Settlement Proposal under Section 12A of the I B Code proposed at the Committee of Creditors Meeting held on 13th September, 2019 was concluded on 17th September, 2019. From the results of the voting, it was noted that the resolution for withdrawal of corporate insolvency resolution process under Section 12A of the I B Code was rejected by the members of the Committee of Creditors by 99.68% voting shares and Committee of Creditors members having the remaining 0.3% voting shares abstained from voting. As such, it is unequivocally clear that the resolution for withdrawal of corporate insolvency resolution process under Section 12A of the I B Code came to be rejected by the members of the Committee of Creditors as the same could not muster the requisite 90% voting share 12. It is pertinen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quent corporate insolvency resolution process of the Corporate Debtor and the Corporate Debtor would eventually be subjected to nothing but liquidation. 15. From the record, we find that after the corporate insolvency resolution process was initiated on 25th March, 2018 and number of claims were filed by different financial creditors and the operational creditors , the claims amounting to ₹ 3000 crores. In view of the said position, the Appellant Vishal Vijay Kalantri on behalf of the Promoter sought time to settle the claim under Section 12A. 16. Now at the time of hearing, the learned counsel for the Appellant wanted to highlight the merit to suggest that there is a pre-existence of dispute . However, as more than one and a half year has passed and as the matter remains pending since long because of the Appellant Vishal Vijay Kalantri , the Promoter would have settled the matter with the creditors and also sought time, we are not inclined to determine the initial issue whether there was a pre-existing dispute or not. Even if, the proceedings is quashed on the pre-existing dispute , as admittedly there is a default of payment and it will regenerat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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