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TMI Blog2023 (12) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... 023 which was attended by all the members of CoC including Respondent No.12 - ACRE. The Appellant before us is the Successful Resolution Applicant whose Resolution Plan was approved by the CoC on 05.11.2020 and it was issued a letter of intent dated 07.11.2020. The Resolution Professional filed an application on 26.11.2020 for approval of Resolution Plan. The Adjudicating Authority on 06.09.2022 while disposing off application under Section 30(6) allowed the Resolution Professional to accept new Resolution Plans from unsuccessful Resolution Applicants and even previously non-participating entities who may want to submit a Resolution Plan for the Corporate Debtor. The said order was challenged before this Tribunal in Company Appeal (AT) (Ins.) No.1158 of 2022 by the Appellant, which appeal was allowed by order dated 09.02.2023 and this Tribunal held that after approval of the CoC of the Plan, the matter could not have been send for inviting applications for fresh Resolution Plan. This Tribunal in Para 23 to 27 held as follows: 23. The IBC and the CIRP Regulations provide tight scheme and timeline for completion of entire process. In the present case, we have noticed that CIRP peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken in approving the Resolution Plan. Present is not a case where the CoC is pointing out any breach of procedure or manifest error in their approval of the Resolution Plan, which may be a ground to be pressed before the Adjudicating Authority. The CoC after full consideration has approved the Plan and the financial offer made by the Applicant in the Plan. In the name of receiving higher offer, subsequently, CoC cannot turn around and pray to the Adjudicating Authority to send the Plan back for consideration. The present case itself is an example that adopting such course by the CoC and Adjudicating Authority, enormous delay shall take place, which is not in the interest of CIRP, nor in the interest of Corporate Debtor. The Corporate Debtor has to be revived with speed and in timelines, which has been prescribed in the CIRP. Once, the said object is achieved, the same shall not be allowed to frustrate on the grounds, which have been raised before the Adjudicating Authority in the present case. We may notice that in this Appeal, an interim order was passed on 21.09.2022, staying the further process in pursuance of the impugned order dated 06.09.2022, which order is still continued. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed I.A. No. 584 of 2023, pointing out Writ Petition 11460 of 2021 filed in Rajasthan High Court. It is submitted that the Adjudicating Authority ought to have considered application I.A. No. 851 of 2020 as directed by this Tribunal vide its order dated 09.02.2023 and the Adjudicating Authority has indirectly done something which was not approved by this Tribunal in order dated 09.02.2023. It is submitted that the impact of Rainbow Judgment in the CIRP process was already explained by the Resolution Professional and Resolution Applicant. Even the Resolution Professional has filed an affidavit in response to the queries made by the Adjudicating Authority earlier which has been pointed out by Shri Navin Pahwa, himself. 5. Learned counsel for the Appellant has brought on the record the minutes of CoC meeting held on 13.12.2023, which was convened in consequence of the impugned order, in which minutes the Resolution Professional sought view of all members and recorded the same. It is useful to extract said views, which are as follows: "Thereafter RP sought views from all the CoC members and recorded the same in the below table: S. No. Name of the Bank Vote Share Comments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; 5 Small Industries Development Bank of India (SIDBI) 8.0% * SIDBI representative stated that Rainbow Paper Judgement should not affect the plan as the same came after the plan was already approved by CoC in 2020. * But if NCLT decides that there is any impact to be considered due to Rainbow paper judgement, the same should be borne by the Successful Resolution applicant i.e. Express Group in this matter as an incremental cost i.e. over and above the plan value stated by Express in its approved plan. * SIDBI representative also stated that they are not suggesting any new voting on the plan. 6 Bank of India 4.3% * Not present in the CoC 7 State Bank of India 2.5% * Not present in the CoC 8 Canara Bank (eSyndicate Bank) 2.2% * Views not shared during the meeting. Legal officer was not attending the meeting and therefore the representative stated that they will share their comments separately. At the time of finalization of minutes, no comments have been shared with the RP. 9 Punjab National Bank (eOBC) 4.6% * Not present in the CoC 10 Saraswat Co-operative Bank 4.7% * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he opinion given by learned counsel for the Resolution Professional. 7. Shri Navin Pahwa has referred to Resolution Professional's reply to applicability of Rainbow Paper judgment, where following has been noted in the reply: "Applicability of Rainbow Judgement in our case 1. Resolution Plan of Neesa Leisure Limited was approved by the CoC on 05 November 2020 and was filed with the Hon'ble NCLT Ahmedabad bench on 26 November 2020. The 2020 in Rainbow papers was pronounced by Supreme Court on September 6, 2022. 2. Therefore, the Supreme Court judgement was not taken into account by the CoC while considering and approving the resolution plan. Please note that under the approved resolution plan, "Nil" payment is proposed to all Operational Creditors including statutory dues. 3. RP legal advisor has stated that the resolution plan of Express Hotels consortium which has been approved by the CoC is not compliant with the Supreme Court's judgment in Rainbow Papers matter. The 18th CoC meeting was held on 08 December 2023 wherein RP discussed on the Agendas as directed by the NCLT Bench. 5. In the 18th CoC meeting, RP was asked to take the updated view of the RP legal ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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