9911796707
TMI Blog2019 (2) TMI 1964X X X X Extracts X X X X X X X X Extracts X X X X ..... Company Law Tribunal), Single Bench, Chennai, in MA No. 478/2018 and MA No. 163/2018. By one of the impugned orders, the Adjudicating Authority accepted the stand taken by the 'Committee of Creditors' and thereby rejected the 'Resolution Plan' submitted by Mr. Ajay Agarwal & Anr., members of the Board of Directors. In the other order, the Adjudicating Authority ordered for liquidation of 'M/s. Ashok Magnetics Limited'- ('Corporate Debtor'). 2. Learned counsel appearing on behalf of the Appellant(s) submitted that 'M/s. Ashok Magnetics Limited'- ('Corporate Debtor') being a Small Scale Industry comes within the meaning of 'Micro, Small and Medium Enterprises', therefore, its promoters cannot be held to be ineligible under Section 29 A, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prospective resolution applicants (Mr. Dorairaj Thillaraj and Mr. Ajay Agarwal jointly with Mr. Ashok Agarwal) into vote. Both the resolution plans were voted against by all COC members and hence the RP declared that both the Resolutions Plans were rejected." 5. Learned Senior Counsel appearing on behalf of the Appellants submits that even during the period of liquidation, the liquidator should ensure that the Company should remain the going concern and take steps in terms of Section 230 of the Companies Act, 2013. Reliance has been placed on the decision of this Appellate Tribunal in "S.C. Sekaran v. Amit Gupta & Ors.─ Company Appeal (AT) (Insolvency) No. 495 & 496 of 2018". 6. It is further submitted that the Compromise, Arrange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration. However, as this Appellate Tribunal has observed that the 'Committee of Creditors' considered the matter and voted against the 'Resolution Plan', this Appellate Tribunal is not inclined to remand the matter to the 'Committee of Creditors'. 11. In "S.C. Sekaran v. Amit Gupta & Ors." (Supra), this Appellate Tribunal having gone to the relevant provisions including Section 230 of the Companies Act, 2013 observed and directed the liquidator to proceed in accordance with law and observed as follows: "8. In view of the provision of Section 230 and the decision of the Hon'ble Supreme Court in 'Meghal Homes Pvt. Ltd.' and 'Swiss Ribbons Pvt. Ltd.', we direct the 'Liquidator' to proceed in accordance with law. He will verify claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the aforesaid observations and directions. No costs." 12. In view of the aforesaid decision and stand taken by the Appellants and the liquidator, the liquidator is directed to act in accordance with law and observations of this Appellate Tribunal in "S.C. Sekaran v. Amit Gupta & Ors." (Supra). It will be open to the members of 'M/s. Ashok Magnetics Limited' or the creditors to contact the liquidator for Compromise or Arrangements in terms of Section 230. If it is found that the scheme is viable, feasible and maximise the assets of the 'Corporate Debtor' and balance the creditors, the liquidator will move application under Section 230 before the National Company Law Tribunal for appropriate order and directions. On failure, the liquid ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
