9911796707
TMI Blog2022 (6) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... Insolvency and Bankruptcy Code, 2016, seeking the following reliefs i) To dissolve the Committee of Creditors consisting of the Respondent No. 1, who is a related party. ii) To declare the CIRP initiate by the Respondents No. 1 as void. iii) To remove Respondent No. 2 from the position of RP. iv) To impose cost for such fraudulent and malicious on Respondent No. 1 and Respondent No. 2 as per the provisions of Section 65 and 70(2). v) To pass such other orders deem fit. 2. It was averred in the application that 1st Respondent is the family concern of the Bansal Group. One Ms. Deepthi Vinod Bansal is the relative of 1st Respondent's Managing Director Mr. Sathish Bansal. 3. It was further averred that the 1st Respondent had en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made liable to pay double the amount which it actually liable to pay the 1st Respondent. 8. It was further submitted that the 1st Respondent purposefully suppressed the shareholder agreement dated 16.11.2016 and projected itself as a Financial Creditor and fraudulently initiated CIRP against the Corporate Debtor. Further, contended that the 1st and 2nd Respondents acted in collusion and the 1st Respondent should be disqualified to continue as Financial Creditor. 9. In view of the above submissions the Applicant sought to dissolve CoC constituted with the relative party. In support of his submissions relied on Hon'ble NCLAT decisions in Jayendra Banerji Vs. Shashi Agarwal and Bimalesh Bharadwaj and Ors. Vs. Value Infratech Private L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6, on record and sought to dissolve the CoC and to remove the Resolution Professional of the Corporate Debtor. 14. We have heard learned counsel for both sides. It can be seen from the records that the CIRP has been initiated against the Corporate Debtor on 27.04.2021 and 1st Respondent herein was appointed as Interim Resolution Professional. Moreover, an appeal against the CIRP order is pending lis and no stay has been granted against CIRP order. At this stage, in the absence of recall or review power available to this Adjudicating Authority the prayer (ii), sought by the Applicant to declare the CIRP initiated against the Corporate Debtor as void, is far from the hands of this Adjudicating Authority and to be rejected. 15. Next, the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party", in relation to an individual, means ... Explanation.--For the purposes of this clause,-- (a) "relative", with reference to any person, means anyone who is related to another, in the following manner, namely:-- ... (xiv) brother's son and daughter, ... Section 21. Committee of creditors- ... (2) The committee of creditors shall comprise all financial creditors of the corporate debtor: Provided that a financial creditor or the authorised representative of the financial creditor referred to in sub-section (6) or sub-section (6A) or sub-section(5) of section 24, if it is a related party of the corporate debtor, shall not have any right of representation, participation or voting in a meeting of the committee of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ep in mind that it was defined to ensure that those entities which are related to the Corporate Debtor can be identified clearly, since their presence can often negatively affect the insolvency process." And in Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors., it was held as follows "75. ... All the categories in Section 29A(j) deal with persons, natural as well as artificial, who are connected with the business activity of the resolution applicant. The expression --related party, therefore, and --relative contained in the definition Sections must be read noscitur a sociis with the categories of persons mentioned in Explanation I, and so read, would include only persons who are connected with the business activity of the resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der sections 13 and 15; (c) constitute a committee of creditors; ... Regulation 17: Constitution of committee. (1) The interim resolution professional shall file a report certifying constitution of the committee to the Adjudicating Authority within two days of the verification of claims received under sub-regulation (1) of regulation 12. (2) The interim resolution professional shall hold the first meeting of the committee within seven days of filing the report under this regulation. Reading the above provisions clearly shows that it is the duty of the Resolution Professional to collect and peruse the information regarding Corporate Debtor and claimants before constituting CoC. It is also relevant to refer to Form C in the schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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