TMI Blog2023 (6) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating Authority ought not to have placed reliance on Section 10(2) of the SARFAESI Act, 2002. It is also pertinent to mention that the CoC has approved the Resolution Plan by the majority of 98.70% in its 27th meeting, held on 19/10/2020. The Hon ble Supreme Court in a Catena of Judgments has held that the commercial wisdom of the CoC is non-justifiable and in the instant case, there are no material irregularity, under Section 30(2) of the IBC Code, 2016 . Keeping in view, the clarification given by the Counsel for RBI that the prior permission is not required, this Tribunal is of the considered view that the Adjudicating Authority ought not to have rejected the Resolution Plan, more so, when the principal objective of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 22.09.2021 stating that ARC viz, Invent Assets Securitization and Reconstruction Private Limited is only the Co-Resolution Applicant and the main Resolution Applicant is M/s Longview Resources (HIK) Limited Hong Kong. He further stated that ARC i.e. Invent Assets Securitization and Reconstruction Private Limited does not own any equity rights and it is used only for limited purpose of payment for assignment of Assignable Financial debt by Financial Creditors i.e. they only debt the funds of the Resolution Plan and shall not participate in the equity of the Corporate Debtor and as such the resolution plan is not hit by Section 29A of IBC, 2016. 10. In the instant case before us, M/s Invent Assets Securitisation Reconstruction Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mittee of creditors may approve the resolution plan after considering its feasibility and viability, the manner of distribution proposed, which may take into account the hurdles, priority amongst creditors as laid down in sub section (1) of Section 53 including the priority and the value of security interest of secured creditors and such other requirements as may be specified by the Board 12. The Hon'ble High Court of Delhi in the matter of UV Asset Reconstruction Company Vs Union of India on the issue whether ARC without prior approval of RBI can submit the resolution plan or otherwise, after verifying the provisions of Section 29A of Code a n d Section 10 of the SARFAESI Act has held that This issue has arisen in the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Regulator of ARCs. As such, we are not inclined to consider such conditional resolution plan for resolution of the Corporate Debtor. 14. The Resolution Plan submitted in I.A. No.1114 OF 2020 is rejected under Section 31 (2) of the Code. The Corporate Debtor / Neueon Towers Limited shall be liquidated in the manner laid down in Chapter Ill of the Code. 3. The facts in brief are that the Committee of Creditors approved the Resolution Plan with 98.70% majority Share of votes in its 27th meeting held on 19/10/2020. The Adjudicating Authority has rejected the said approval on the aforenoted grounds. 4. The Learned Counsel for the Appellant, Mr. Sandeep Bajaj submitted that the Adjudicating Authority has erroneously rejected the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary Party for whom no effective Order can be made and therefore sought for dismissal of IA No. 743 of 2022. The Learned Counsel placed reliance on the Judgment of the Hon ble Supreme Court in Kasturi Vs. Iyyamperumal and Ors., reported in 2005 (6 SCC 733) in which the Hon ble Apex Court observed as follows: It is now clear that two tests are to be satisfied for determining the question who is a necessary party, Tests are (1) there must be a right to some relief against such party in respect of the controversies involved in the proceedings (2) no effective decree can be passed in the absence of such party 8. It is argued that the question of impleadment of a Party has to be decided under Order 1, Rule 10 of Civil Proced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Code, will prevail over any of the provisions of the SARFAESI Act, 2002, if it is inconsistent with any of the Provisions of the I B Code, 2016 and therefore the Adjudicating Authority ought not to have placed reliance on Section 10(2) of the SARFAESI Act, 2002. It is also pertinent to mention that the CoC has approved the Resolution Plan by the majority of 98.70% in its 27th meeting, held on 19/10/2020. The Hon ble Supreme Court in a Catena of Judgments has held that the commercial wisdom of the CoC is non-justifiable and in the instant case, we do not see any material irregularity, under Section 30(2) of the IBC Code, 2016 . 11. Keeping in view, the clarification given by the Counsel for RBI that the prior permission is not req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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