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TMI Blog2021 (11) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... wal, Advocates for R-1 Mr. Ashwini Kumar Singh, Advocate for R-2/SBI ORDER (Through Virtual Mode) This appeal was heard on admission on 29.10.2021. 2. This appeal, which has been filed by the Appellant, who is a promoter and ex-Director of the Corporate Debtor, arises out of order dated 8.10.2021 (hereinafter called Impugned Order) in IA No. 699/KB/2021 in CP (IB) No. 1284/2019 passed by NCLT, Kolkata (henceforth called Adjudicating Authority). 3. On an application under section 7 of the Insolvency and Bankruptcy Code, 2016 (in short 'IBC') filed by Respondent No.2 State Bank of India, Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor vide order dated 14.2.2020 of the Adjudicating Authority, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent No. 2 on 13.1.2021, which was again rejected by Respondent No. 2. Again vide e-mail dated 25.2.2021, a revised scheme of restructuring and OTS was submitted by the Appellant to the Respondent No. 2 bank but this was also found unsatisfactory and rejected. 6. The Appellant has further stated that in the CIRP, the only Resolution Plan received from IRC Natural Resources Private Limited was considered by the CoC and put up for vote. Simultaneously, in the same CoC meeting, a proposal for liquidation was also put up and in the event the submitted Resolution Plan was not approved the liquidation proposal would be considered and approved by the CoC. While the liquidation proposal was considered by the CoC, the Appellant again submitted a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordance with the principle of natural justice has been infringed. He has further argued that the CoC approved initiation of liquidation proceedings even though there was a valid scheme of settlement offered by the Appellant, which was financially viable and would have resulted in better returns to the creditors and should, therefore have been considered by the CoC. 9. In support of his arguments, the Learned Counsel for Appellant has placed reliance on the following judgments:- (i) Judgment of NCLAT in Navaneetha Krishnan vs. Central Bank of India, Coimbatore [CA (AT)(Ins) No. 288 and 289 of 2018]. (ii) Judgment of NCLT, Mumbai in Satyanarayan Malu vs. SBM Paper Mills Limited [MA 1396/2018, 827/2018, 1142/2018 and 828/2018 in CP (IB) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proposal was acceptable to the Respondent No. 2, the Appellant did not file application under section 12A of IBC. 12. It is recalled that the CIRP of the Corporate Debtor was initiated on 14.2.2020 and the decision by the CoC regarding moving for liquidation of Corporate Debtor was taken in its meeting dated16.6.2021. Thus, there is a passage of 16 months from the initiation of CIRP to the decision by CoC to move for liquidation. The Hon'ble Apex Court has held in many judgments that proceedings under IBC should be completed in a time-bound manner. Moreover, if any resolution plan is not approved by CoC, the provision of section 33 of IBC has to kick in, with no option but to go for liquidation of the Corporate Debtor. 13. The catena o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e legal infirmity. The relevant extract from this judgment is reproduced below: "150. It will therefore be clear, that this Court, in unequivocal terms, held, that the appeal is a creature of statute and that the statute has not invested jurisdiction and authority either with NCLT or NCLAT, to review the commercial decision exercised by COC of approving the resolution plan or rejecting the same. xxxxxxxxxxx 155. This court observed, that the court ought to cede ground to the commercial wisdom of the creditors rather than assess the resolution plan on the basis of quantitative analysis. This Court clearly held, that the appellate authority ought not to have interfered with the order of the adjudicating authority by directing the succ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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