TMI Blog2021 (3) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... lication before the Adjudicating Authority. Pursuant to such exclusion permitted by this Adjudicating Authority, the period of 270 days was expired on February 19, 2020. Such exclusion was sought for in the interest of stake holders of the corporate debtor as CIRP was in the advance stage of finalising successful resolution applicant for CD. It is also matter of record that on approval of the resolution plan by the CoC member, an application under section 30 of the Insolvency and Bankruptcy Code has already been filed before this Adjudicating Authority for sanction of plan and same is sub judice, under such circumstances if commercial wisdom is interfered at this stage which is the prerogative of CoC, in that event, the whole process will get frustrated and the CIRP has to be started afresh, which will frustrate the very objective of the IB Code as the time is the essence of the Code. The instant application was not only premature on the date of filing, but is also devoid of merit and hence dismissed. - I. A. No. 116 of 2020 in C. P. (I. B.) No. 157 /NCLT/AHM/ 2018. - - - Dated:- 3-7-2020 - MS. MANORAMA KUMARI Judicial Member and CHOCKALINGAM THIRUNAVUKKARASU Technical M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng held on January 29, 2020 with the final proposal in the said meeting, the CoC declared M/s. GP Global Energy P. Ltd., as H1 bidder and M/s. Panch Tatva Promoter P. Ltd., as H2 bidder. Thereafter, the applicant has come to know that the resolution plan submitted by H1 bidder, i. e., respondent No. 3 of the instant application is placed by the RP before the CoC under section 30(4) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as I and B Code ) for approval and e-voting on the said resolution plan. 6. The applicant further alleged that respondent No. 3, i. e., H1 bidder has not only suppressed material facts from the RP and CoC, i. e., from respondents Nos. 1 and 2 respectively, but have also given a false undertaking and wrong information to the CoC as required under regulation 38(1B) of the CIRP Regulations, 2016, therefore, the resolution plan of respondent No. 3 is non-compliant and hence cannot be placed for the approval of the CoC. 7. It is also alleged that the respondent No. 3 has failed to implement the plan within the timeline in Allied Strips Ltd. , wherein, he was the successful resolution applicant as reflected from the order dated May 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would have been declare as a successful resolution applicant. That apart in 16th CoC meetings, the prospective resolution applicants were given an opportunity to increase their bids at the request of CoC. Thereafter, the highest bidder was declared. The applicant was informed that it was not the highest bidder and was offered to change and improve its bid. However, the applicant informed the member of the CoC that their bid is final and the applicant is not inclined to revise their offer any further. The said fact is recorded in the minutes of 16th CoC meeting. After, all the rounds of inter se biding in which both prospective resolution applicant participated but respondent No. 1 was again declared as H1 bidder. 13. It is further submitted by the RP that, before the start of 16th CoC meeting the final proposal of the applicant was ₹ 8,100 lakhs and that of respondent No. 3 was ₹ 8,411 lakhs, whereas, after the conclusion of 16th CoC meeting, the revised financial proposal of the applicant was ₹ 8,400 lakhs and respondent No. 3 was ₹ 9,811 lakhs. Considering the same the CoC declared respondent No. 3 as H1 bidder. 14. The resolution professional furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payment in entirety (₹ 70.25 crores) from its own sources and the remaining amount was to be paid by Bank of Baroda. The said fact is recorded by the Principal Bench, New Delhi vide its order dated August 8, 2019. Thus, the allegation so made by the applicant is not sustainable in view of the various order passed by the Principle Bench, in support of the contentions respondent No. 3 has also annexed the copy of various order of the Principal Bench, New Delhi as well as the National Company Law Appellate Tribunal. As such there in no violation of regulation 38 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for the Corporate Persons) Regulations, 2016. 19. Heard the applicant, RP, CoC and respondent No. 3 through their respective lawyer. This Adjudicating Authority come to the finding that : Firstly, the application was pre-mature as on the date of filing, i. e., February 4, 2020 as the resolution professional and member of CoC were negotiating with respondent No. 3 and respondent No. 3 was not even declared as successful resolution applicant as it was not put to voting as on February 4, 2020. 20. Secondly, it is matter of record tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial creditor and the operational creditor , thereby balancing the interest of all stake holders, which is the spirit of the Code. Further, the CIRP has to be completed in time bound manner and 270 days was got over in January 28, 2020 itself. It is also matter of record that 22 days are excluded from CIRP on filing the application before the Adjudicating Authority. Pursuant to such exclusion permitted by this Adjudicating Authority, the period of 270 days was expired on February 19, 2020. Such exclusion was sought for in the interest of stake holders of the corporate debtor as CIRP was in the advance stage of finalising successful resolution applicant for CD. The very object of the code is resolution, as evident from the long title of the Code, which reads as under : An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate person, partnership firms and individual in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, avail ability of credit and balance the interest of all the stakeholders including alteration in the order of priority of payment of Government dues and to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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