TMI Blog2021 (1) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... he death of the original plaintiff, was not aware of the insolvency proceedings in respect of the corporate debtor is of no consequence. In view of the ratio laid down in Committee of Creditors of Essar Steel India Ltd. [ 2019 (11) TMI 731 - SUPREME COURT ] , the plaintiffs cannot be said to have a valid claim as against the defendant any longer and at least subsequent to the approval of Resolution Plan of the corporate debtor. In a proceedings under Chapter XIIIA of the Original Side Rules the defendant is entitled to unconditional leave to defend the suit, in the event, the defendant establishes that it has a substantial defense to the claim. In the facts of the present case, the defense set up by the defendant on the basis of the rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed the instant suit on February 7, 2012. The original plaintiff had died on May 6, 2017. Consequent upon such death, and consequent upon an application for amendment, the original plaintiff had been substituted by the present plaintiffs in terms of the orders dated July 3, 2018 and August 28, 2018. The name of the defendant had changed to the present name and consequent upon such change of name, amendment to the cause title of the plaint was allowed by an order dated January 29, 2019. 4. During the pendency of the suit, State Bank of India had filed a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal, Principal Bench at New Delhi being (IB)-201 (PB)/2017. The Adjudicating Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls Limited satisfied the requirements of the Code of 2016, the Adjudicating Authority had approved such Resolution Plan on May 15, 2018. Consequent upon such approval, Bamnipal Steel Limited a wholly-owned subsidiary of Tata Steels Limited had acquired the control and management of the defendant. The challenge to the Resolution Plan as approved by the Adjudicating Authority before the National Company Law Appellate Tribunal had failed. On November 27, 2018, the name of the defendant had changed to Tata Steel BSL Limited. 6.Committee of Creditors of Essar Steel India Ltd. (supra) has held that, Section 31(1) of the Code of 2016 makes it clear that once a Resolution Plan is approved by the Committee of Creditors it shall be binding on all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te debtor. Far from supporting the stand of the respondents, it is clear that in point of fact, Section 31 is one more factor in favour of a personal guarantor having to pay for debts due without any moratorium applying to save him. 106. Following this judgment in V. Ramakrishnan case [SBI v. V. Ramakrishnan, (2018) 17 SCC 394 : (2019) 2 SCC (Civ) 458] , it is difficult to accept Shri Rohatgi's argument that that part of the resolution plan which states that the claims of the guarantor on account of subrogation shall be extinguished, cannot be applied to the guarantees furnished by the erstwhile Directors of the corporate debtor. So far as the present case is concerned, we hasten to add that we are saying nothing which may affect th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority had accepted the Resolution Plan of the corporate debtor, that is the predecessor-in-interest of the defendant herein. The Resolution Plan has tabulated the liability of such corporate debtor. The plaintiff has not produced any document to establish that, the Resolution Plan approved in respect of the corporate debtor had the claim of the plaintiffs therein. The contentions of the plaintiffs that, the plaintiffs, subsequent to the death of the original plaintiff, was not aware of the insolvency proceedings in respect of the corporate debtor is of no consequence. In view of the ratio laid down in Committee of Creditors of Essar Steel India Ltd. (supra), the plaintiffs cannot be said to have a valid claim as against the defendant any ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
