TMI Blog2021 (3) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Authority. It is in the fitness of situation to allow the appeal and set aside the impugned order - Corporate Debtor- M/s.K.S.Oils Ltd shall liquidate in the manner as laid down in Chapter-III of the Code - moratorium shall cease to have effect - Application allowed. - Company Appeal (AT) (Insolvency) No. 98 of 2021 - - - Dated:- 16-3-2021 - [Justice Bansi Lal Bhat] Acting Chairperson And [Dr. Ashok Kumar Mishra] Member (Technical) For the Appellant: Mr. Vivek Sibal, Mr. Rahul Sharma, Advocates Mr. Kuldeep Verma (RP in person). For the Respondents: Ms. Pooja M Saigal, Mr. Shantanu Chaturvedi, Mr. Anshul Bajaj, Advocates for R14 15. Mr. Sumant Batra, Mr. Sanjay Bhatt, Ms. Niharika Sharma, Advocates for R1-13 Mr. Ramji Srinivasan, Senior Advocate with Mr. Ashutosh Ghade, Mr. Shashvata Shukla, Ms. Rajshree Chaudhary, Mr. Shivkrit Rai, Advocates for Intervenor ( Om Shri Shubh Labh Agritech Pvt. Ltd.) JUDGEMENT DR. ASHOK KUMAR MISHRA, TECHNICAL MEMBER. 1. The present Appeal is filed by the Appellant Mr. Kuldeep Verma, Resolution Professional ( RP ) of M/s. K.S Oils Ltd, under Section 61 of the Insolvency and Bankruptcy Code, 2016 (in short Code ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 10.09.2020 (Order Reserved), 16.09.2020 (Further consideration on 28.09.2020), 28.09.2020, 08.10.2020, 27.11.2020, 10.12.2020 and 01.01.2021 (dismissed being infructuous). c. History of the case is that an Application under Section 7 of the Code was filed by SREI Infrastructure Finance Limited (SREI) and on 21.07.2017 the Adjudicating Authority has admitted the Petition filed in respect of M/s. K.S.Oils Ltd- Corporate Debtor and ordered for CIRP. SREI is also a Financial Creditor who submitted a Resolution Plan dated 09.04.2018 as Resolution Applicant and the same was put to vote in the 7th CoC Meeting held on 13.04.2018 and the Resolution Plan was rejected by a vote of 71.34%. Since the maximum statutory period of 270 days concluded on 16.04.2018 without a Resolution Plan approved by CoC, the RP filed an application IA No. 165 of 2018 to consider passing of orders for liquidation of the Corporate Debtor under Chapter III of the Code. However, the Adjudicating Authority asked the RP to consider addendum III dated 04.05.2018 submitted by SREI to the Resolution Plan as stated above for placing before the CoC. The RP placed the said addendum before the CoC on 13.06.2018; the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Resolution Applicant submits that the matter relates to Madhya Pradesh for which Indore Bench had been notified initially but there was no Bench constituted and now the Hon ble Members of the Ahmedabad Bench have been allowed to take up Indore Bench matters at Ahmedabad. Learned counsel for the Appellant submits that the revised plan has already been filed, which may be considered by the Committee of Creditors . In the facts and circumstances, we allow the Committee of Creditors to consider the revised plan , if any, filed or is to be filed within a week. The Committee of Creditors is allowed to consider the same within 2 weeks from the date of this order or receipt of the revised plan and in case the proposed resolution plan is not filed within a week, the Adjudicating Authority will take up the application under Section 33 of the I B Code and pass appropriate order in accordance with law. The appeal stands disposed of. e. Even after this Appellate Tribunal order, the Petition before the Adjudicating Authority was heard on 22.11.2019, 13.12.2019, 19.12.2019, 03.01.2020, 23.01.2020, 03.07.2020, 10.09.2020, 16.09.2020, 28.09.2020, 08.10.2020, 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h it is directory in nature. This also suggests that the need for giving multiple opportunities to the sole Resolution Applicant is not warranted to defeat the very purpose of the Act. c) If this Appellate Tribunal consider the intervention Application i.e. IA No. 357 of 2021, it will again move in a wrong direction and will violate the principles of natural justice as the Code and the Regulator IBBI has prescribed a process for selection of Resolution Applicant which initially starts with Invitation for Expression of Interest (EOI) followed by Information Memorandum, Evaluation Matrix and a request for Resolution Plan in accordance with Chapter X of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Hence, such midway interruptions of allowing a party to enter the fray after 3 years of issue of EOI is neither warranted by the Regulations nor by the Code. Learned Senior Counsel representing Respondent No.1 to 13 has already vehemently objected the intervention application. Considering the above said aspect, we are no way inclined to allow the Intervention Application and accordingly, the Intervention Application is rejected at the ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors 1[approved by not less than sixty-six per cent. of the voting share] to liquidate the corporate debtor, the Adjudicating Authority shall pass a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). [Explanation. For the purpose of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (1) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum.] (3) Where the resolution plan approved by the Adjudicating Authority is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the Adjudicating Authority for a liquidation order as referred to in sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of situation to allow the appeal and set aside the impugned order dated 01.01.2021 passed by the Adjudicating Authority (NCLT, Indore bench at Ahmedabad Court No.1) in IA No. 165/2018 in CP(IB) No. 32 of 2017 (TP No. 60/2019) and initiate Liquidation of the Corporate Debtor M/s. K.S.Oils Ltd under Section 33(1) of the Code. Hence, the Appeal is allowed and the impugned order dated 01.01.2021 passed by the Adjudicating Authority is set aside and at the same time the order for initiation for liquidation of the Corporate Debtor M/s. K.S.Oils Ltd is also allowed. The Corporate Debtor- M/s.K.S.Oils Ltd shall liquidate in the manner as laid down in Chapter-III of the Code; a. Mr Kuldeep Verma IP Registration No. IBBI/IPA-001/IP-P00014/2016-2017/10038 an Insolvency Professional is appointed as the Liquidator. He shall be entitled to such fees as may be specified by the Board in terms of Section 34 (8) of the Code. b. He shall issue public announcement stating that Corporate Debtor is in liquidation. c. The Moratorium declared under Section 14 of the IBC 2016 shall cease to operate here from. d. Subject to section 52 of the IBC 2016 no suit or other legal proceedings sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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