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TMI Blog2022 (7) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... /2021 filed by the Appellant seeking consideration of his resolution plan submitted on 10.9.2021 was rejected. 2. In brief the Appellant's case is that Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor M/s. Sanwaria Consumer Limited (formerly known as M/s. Sanwaria Agro Oils Ltd.) on 29.5.2020. Thereafter, on invitation of Expressions of Interest (EOI) for submitting resolution plan for insolvency resolution of the corporate debtor, the Appellant submitted a resolution plan on 22.1.2021, which was revised on 27.3.2021. This revised resolution plan was considered in the meeting of the Committee of Creditors (in short 'CoC') held on 30.3.2021 and based on the comments received in the meeting the Appellant again submitted a revised resolution plan dated 8.4.2021, which was considered by the CoC and the Appellant was informed vide e-mail dated 23.4.2021 that the resolution plan submitted by him was not approved after being rejected in voting by requisite vote share in the CoC. Thereafter, the Appellant filed an application bearing No. IA No. 133(MP)2021 before the Adjudicating Authority seeking indulgence for consideration of his revised resolut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further revised from the resolution plan which was submitted on 17.8.2021 and on 10.9.2021. He has claimed that since the revised resolution plan submitted on 10.9.2021 was in accordance with the comments given by the lending banks, it would have passed muster, but the CoC did not take up this revised plan for consideration and therefore the Appellant approached the Adjudicating Authority through IA No. 192 of 2021 seeking direction to the CoC/Resolution Professional to consider his revised resolution plan submitted on 10.9.2021, whereupon the Adjudicating Authority, vide its order dated 9.12.2021, rejected his application. 6. The Learned Senior Counsel for Appellant has further argued that the corporate debtor is a going concern and as held by the Hon'ble Supreme court in its judgment in Ghanashyam Mishra and Sons (P) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. 2021 SCC Online SC 313, liquidation should be the last resort as it would mean certain death of the corporate debtor. Therefore, since the Appellant had already submitted a much improved resolution plan, it would have been in the interest of the corporate debtor as well as the creditors that such a plan was considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany) for submitting any revised plan. He has stated that in accordance with the decision of the joint lenders in meeting held on 26.11.2021, the views of the CoC were placed before the Adjudicating Authority during consideration of IA No. 192(MP)/2021, whereupon the Adjudicating Authority rejected IA No. 192/2021 vide the Impugned Order taking the view that the CoC had rejected the resolution plan presented to it and the CIRP period of 330 days was already over, and further since the application for liquidation was filed on the directions of CoC. 9. The Learned Counsel for RP agreed with the arguments put forth on behalf of the CoC and submitted that Hon'ble Supreme Court has held in the matter of Ebix Singapore Private Limited v. Committee of Creditors of Educom Solutions Limited & Anr. 2021 SCC OnLine SC 707 that if statutory timelines are over and no resolution could be obtained, the matter should be allowed to take due course in accordance with the provisions of IBC without unnecessary delay. 10. It is noted that the CIRP was initiated against the corporate debtor on 29.5.2020, whereafter resolution plans were invited from the prospective resolution applicants. Admittedly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Adjudicating Authority in the meeting of the CoC held on 16.8.2021 and after due consideration, the appellant was advised to increase the bid amount and further submit the revised plan by 17.8.2021, which the Appellant agreed to. This revised plan was considered and deliberated upon in the meeting of CoC and put up for e-voting during the period 17.8.2021 till 3.9.2021, which was extended till 16.9.2021 upon the request of some members of the CoC and the revised resolution plan was rejected by a vote share of 100% in the 9th meeting of the CoC. The table depicting e-voting result is attached at pg. 90 of the affidavit-in-reply of the CoC. In the same meeting, the CoC members took note of the progress of liquidation application bearing IA No. 90/2021 pending before the Adjudicating Authority. 13. We consider the claim of the Learned Senior Counsel for Appellant that the meeting of joint lenders took the view that the resolution plan submitted by the appellant on 10.9.2021 was an important one, which satisfied the lenders banks, we note from the minutes of the meeting of joint lenders dated 26.11.2021 (attached at pp.99-100 of the affidavit in reply of CoC) as follows:- "State B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the authorized signatory vs. Edelweiss Asset Reconstruction Co. Ltd. through the Director and Ors. [2021 SCC Online SC 313], wherein it is held as follows:- "53. After discussing the relevant provisions of I&B Code, this Court observed thus: 33. ........ The scheme of the Code, therefore, is to make an attempt, by divesting the erstwhile management of its powers and vesting it in a professional agency, to continue the business of the corporate body as a going concern until a resolution plan is drawn up, in which event the management is handed over under the plan so that the corporate body is able to pay back its debts and get back on its feet. All this is to be done within a period of 6 months with a maximum extension of another 90 days or else the chopper comes down and the liquidation process begins." [emphasis supplied] 18. On the other hand. the Learned Counsel for Respondent has referred to Hon'ble Supreme Court's judgment in the matter of Ebix Singapore Private Limited v. Committee of Creditors of Educom Solutions Limited & Anr. 2021 SCC OnLine SC 707, wherein it is held as follows:- "202......A failed negotiation for modification after submission, or a withdraw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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