TMI Blog2022 (6) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of Section 240 A of the Code provide an exemption to the Successful Resolution Applicant from compliance with the provisions of Section 29A(c) and (h) of the Code. So, the resolution plan submitted by the resolution applicant is very much under the provisions of Code. Moreover, a clause of personal guarantee in the resolution plan will not extinguish the right of creditors to proceed against personal guarantors. Creditors are always at liberty to proceed against personal guarantor separately. The application under section 66 is to be filed only by the resolution professional or the liquidator. Moreover, the applicant herein is not a resolution professional and is only a dissenting financial creditor and in this capacity the Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he resolution Plan proposed by the Respondent no.1 and 2 which was approved by the Committee of Creditors. iv.) Declare that the Resolution Applicant i.e. Respondent no.1 and 2 is disqualified u/s 29A of the Code. v.) Pass an Order u/s 47 of the Code requiring Board to initiate disciplinary proceedings against Respondent no. 3. 2. On perusal of the Application, it reveals that the applicant has prayed for the dismissal of the Resolution Plan proposed by the Respondent no.1 and 2, which was duly approved by the Committee of Creditors as such Respondents are disqualified u/s 29A of the Code. 3. The Applicant have submitted that as per the Forensic Audit Report the Corporate Debtor has booked the entry of sales twice agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution Professional has neither reported these transactions nor allowed the Applicant to make appropriate and adequate representations before the meetings of the Committee of Creditors. 4. The Applicant has raised further objection to the resolution plan that the Resolution Applicant has proposed a clause in plan that all the Personal Guarantees of Shri Rakesh Ranjan, Smt. Ragini Ranjan, Shri Niranjan Prasad Sinha and Smt. Sharda Sinha shall continue to be the guarantor for the Resolution debt as envisaged under the Resolution Plan and has submitted that such a clause of personal guarantee in the resolution plan will extinguish the proceeding against personal guarantors. Moreover, the Applicant relied on the judgment of Hon ble Supre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied by the statutory auditor and a copy of the certificate of auditor is produced along with the affidavit in reply filed by the Resolution Professional. The Respondent no. 1 has submitted that Anand Teknow LLC, Oman is wholly owned subsidiary of the Corporate Debtor and the transactions were carried out in the ordinary course of business for incorporating the wholly-owned subsidiary and towards capital investment. It is submitted that copy of minutes of the board meeting of the Corporate Debtor dated 09.02.2015 have been placed on record by the affidavit in reply of Respondent no. 3. Moreover, the Respondents have submitted that the report on which applicant is relying have following disclaimers and cannot be relied: The proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guarantee in the resolution plan will not extinguish the right of creditors to proceed against personal guarantors. Creditors are always at liberty to proceed against personal guarantor separately. The application under section 66 is to be filed only by the resolution professional or the liquidator. Moreover, the applicant herein is not a resolution professional and is only a dissenting financial creditor and in this capacity the Applicant has no right to file the present application. In any case, the present application is liable to be dismissed on the ground of maintainability also, since the transactions which were mentioned in the application under section 47 and section 66 does not qualify the criteria of undervalued or fraudulent tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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