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TMI Blog2022 (11) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... solvency) No. 03/2022 Appeal (AT) Ins. No. 03 of 2022 have been heard together and are being disposed of by this common Judgement. 2. Company Appeal (AT) Ins. No. 03 of 2022 was filed by the Appellant- Suspended Director of the Corporate Debtor challenging the Order dated 24.12.2021, by which, Application under Section 7 filed by the Respondent- Indian Bank had been admitted. This Tribunal after hearing the Appeal, disposed of the Appeal by Judgement dated 04.07.2022. 3. It is necessary to extract the relevant portion of the Judgment i.e. Paragraphs 13 to 16 of the Judgment, which is to the following effect: "13. The statutory scheme under the IBC delineated under Section 12A of the Code as well as Regulation 30 A of the CIRP Regulations, 2016 which has been brought in the statute w.e.f. 06.06.2018 is a clear recognition of provisions and procedures for settlement in the IBC proceedings. In the facts of the present case and sequence of the events which we have noticed above, we are of the view that one more opportunity be given to the Appellant to submit an Application under Section 12A to the IRP/ RP for being placed before the CoC which is in place in view of our order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk keeping into consideration the factors as have been mentioned in paragraph 14, as above. (iv) The CoC shall complete the process of taking decision on Section 12A Application within a period of two months from this date. For a period till CoC takes a decision on a proposal under Section 12A, CoC may not put any Resolution Plans, if any, to vote. 16. In result, we dispose of this Appeal with above directions without interfering in the impugned order passed by the Adjudicating Authority" 4. After the Order of this Tribunal dated 04.07.2022, the Applicant/Appellant submitted a Settlement Proposal under Section 12-A of the Code. In the proposal, three options were given by the Applicant/Appellant. It is useful to note the prayers made in the Settlement Proposal: "In compliance to directions of the Hon'ble Appellate Tribunal, we hereby propose the payment terms, amount to be paid, upfront payment, source of payment in detail as set out in the enclosure. It is our earnest request that our proposal may be placed before the Committee of Creditors. Since the proposal sets out 3 options, it becomes imperative that an active deliberation takes place between the stakeholders, incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 7. In the 08th CoC Meeting held on 02nd September, 2022, were Mr. N.C. Mehra on behalf of CoC informed that competent authority has decided to cast the dissenting vote and rejected the Settlement Proposal submitted by the Promoter. 8. In the next CoC Meeting held on 08th September, 2022, again on Item No. A4 , Following discussion was recorded in minutes: "Item No. A4 To open the resolution plans received from the resolution applicants in the matter of Corporate Debtor. The RP submitted that, as already informed to members of the CoC, two resolution plans were received for the corporate debtor and the same shall be opened in the meeting, he further submitted that the Prospective Applicants have been communicated to be present before the CoC. The CoC member, the Indian Bank in the meeting mentioned that the resolution shall be opened and presented to the CoC member only and the suspended board of director shall not be present in the meeting while the plans are being opened as he had submitted the 12A application and he was also one of the Prospective Resolution Applicant. RP read the section 30 & 21(2) of the IBC, 2016 and also requested to not delay in opening of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly rejected. 11. Learned Counsel for the Appellant in support of his contempt Application submitted that CoC action after the Judgement of this Tribunal dated 04.07.2022 is in clear violation of the directions issued by this Court. Hence, the Contempt Application have been moved by the Appellant. 12. Mr. Rajesh Kr. Gautam -Learned Counsel appearing for the Bank which is the sole Member of CoC submits that there is no question of any violation on behalf of CoC of the Order passed by this Court. CoC is proceeding in accordance with the directions issued by this Court on 04.07.2022. It is submitted that Appellant was very much present when the plans which were received in the CIRP, were discussed and the Appellant is also aware of the value which was offered in two plans. Hence, it is not necessary to give any further opportunity to the Appellant in the process. 13. Learned Counsel for the RP submits that the RP has also acted in accordance with the Judgment of this Tribunal dated 04.07.2022. The Appellant has not submitted EMD or Rs. 5 Crores which was submitted by other two Resolution Applicants and he can not claim consideration of his settlement proposal along with the Res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt dated 04.07.2022, the CoC is to deliberate on the two Resolution Plans received in the CIRP as well as Settlement Proposal under Section 12A submitted by the Applicant/ Appellant and thereafter to take a final decision. The CoC is also fully entitled to negotiate with the Resolution Applicant as well as the Appellant to optimise the maximum value. 17. Learned Counsel for the Respondents submitted that period of CIRP is coming to an end on 28th November, 2022. In view of the fact that there was debate with regard to the interpretation of the Order dated 04.07.2022 and hence no final decision has been taken as on date, we are of the view that CIRP period needs to be extended for a period of 15 days after 28th November, 2022. We dispose of I.A. No. 3410 of 2022 to the above extent. 18. Now coming to the Contempt Case (AT) No. 25 of 2022, from the facts which have been brought on record, we are of the opinion that no violation of the Order dated 04.07.2022 can be imputed to the Committee of Creditors. Minutes of the CoC clearly indicate that there was certain difference of opinion regarding the interpretation of the order and views expressed in the CoC meetings regarding the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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