9911796707
TMI Blog2025 (3) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... herjee, Advocates For the Respondents : Mr. Joy Saha, Sr. Advocate with Mr. Amit Kasera, Ms. Kriti Gera and Ms. Urmila, Advocates for R-1 Mr. Amar Dave, Sr. Advocate with Mr. Ashok Krumar Jain, Advocates for R-2 JUDGMENT ASHOK BHUSHAN, J. These two Appeal(s) have been filed against the same order dated 18.10.2024 passed by National Company Law Tribunal, Division Bench (Court-II), Kolkata approving the Resolution Plan in the Corporate Insolvency Resolution Process ("CIRP") of the Corporate Debtor - Duncans Industries Ltd. 2. Brief background facts giving rise to these two Appeal(s) are as follows : i. The Corporate Debtor ("CD")- Duncans Industries Ltd. had been running Tea Gardens in the State of West Bengal. Tea Gardens were leased out to the CD and other Tea Companies by State of West Bengal under West Bengal Acquisition Act, 1953. ii. On an application filed by Financial Creditors, CIRP commenced against the CD on 05.03.2020. The Resolution Professional ("RP") filed several IAs for taking possession of different Tea Gardens. The applications filed by RP for taking possession of different Tea Gardens were dismissed by Adjudicating Authority by different orders commenci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IA No.665/KB/2021, insofar as it relates to Bagracote Div.I is set aside. Rest of the order is affirmed. IV. Company Appeal (AT) (Insolvency) No.628 of 2022 and Company Appeal (AT) (Insolvency) No.907 of 2022 are dismissed. V. It is held that Tea Gardens of Garganda, Kilcott and Bagracote are assets of the Corporate Debtor, to which the RP was entitled to be handed over the possession. However, in sequence of the events and facts that these three Tea Gardens having been run by Merico and Sammelan and in the Tea Gardens, thousands of workers are working, we are of the view that ends of justice will be served in holding that RP shall be deemed to be in possession of the aforesaid Tea Gardens and operation of these three Tea Gardens shall henceforth be under the supervision and control of the RP till the CIRP continues. v. Challenging the orders of this Tribunal dated 02.08.2024, several Civil Appeals were filed in the Hon'ble Supreme Court. Three Appeals filed by the Appellant (Merico Agro Industries Pvt. Ltd.), challenging order dated 02.08.2024. The Hon'ble Supreme Court vide its order passed on 22.11.2024 dismissed all the Appeals filed by the Appellant challengin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal(s) separately. Company Appeal (AT) (Insolvency) No.2189 of 2024 4. We have heard Shri Jishnu Saha, learned Senior Counsel appearing for the Appellant; Shri Joy Saha, learned Senior Counsel appearing for the RP; and Shri Amar Dave, learned Counsel appearing for SRA. 5. Shri Jishnu Saha, learned Senior Counsel for the Appellants submits that Appellants were given possession of various Tea Gardens, including the Tea Garden - Kilcott, Garganda and Bagracott-I, who were running the said Tea Gardens and were in possession. Against the order of this Tribunal dated 02.08.2024, three Appeals (as noted above) were filed by the Appellant before the Hon'ble Supreme Court, claiming rights with regard to Kilcott, Garganda and Bagracott-I. The Adjudicating Authority while approving the Resolution Plan has granted relief to the SRA and has directed "For the Tea Gardens, where the Lease period has expired, it is open for SRA to make application to the Lessor or if renewal application has already been made, pursue the same." It is submitted that the said direction in the Resolution Plan is prejudicial to the interest of the Appellant, who had been in possession of various Tea Gardens. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CD. In the order passed by the Adjudicating Authority, while dismissing the application filed by the RP, liberty was granted to the RP to apply for renewal, which order having been affirmed, there is no reason to interfere with the order. Company Appeal (AT) (Insolvency) No.2291 of 2024 8. We have heard Shri S.N. Mukherjee, learned Senior Counsel appearing for the Appellant; Shri Joy Saha, learned Senior Counsel appearing for the RP; and Shri Amar Dave, learned Counsel appearing for the SRA. 9. Learned senior Counsel for the Appellant submits that the Appellant is in possession of Marybong Tea Estate from 01.01.2004. It is submitted that a MoU was entered between the Appellant and the Management of the CD, under which the Appellant was given right to run the CD. The Appellant has made payments amounting to more than Rs.6 crores. It is submitted that further MoU was entered on 05.07.2013. It is submitted that the Tea Garden Marybong has not been held to be the assets of the CD by judgment dated 02.08.2024 and the Appellant, who is continuing in possession is entitled to carry on his rights. It is submitted that Adjudicating Authority committed error in issuing direction i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebtor. In regard to the rest of the Tea Gardens, for which lease period has expired or the Tea Gardens are in possession with others, SRA is free to take steps for renewal of the Leases and get the possession of the same, if granted. This is as per orders are passed by Hon'ble NCLAT dated 02.08.2024." and in paragraph 9.2.1, which is under the heading "Reliefs & Concessions sought" is as follows : "Sl. No. Referred Clause Reliefs & Concessions sought for Our Inference Status 1) 9.1 Consents and approvals, authorizations etc. 2) Upon approval of this Resolution Plan by the NCLT, all actions stated in this Resolution Plan shall be deemed to be approved to make the Resolution Plan effective. Accordingly, any action or implementation of this Resolution Plan shall not be a ground for termination of any consents, approvals, leases & licenses, concessions, authorizations, permits or the like that has been granted to the Corporate Debtor or for which the Corporate Debtor has made an application for renewal or grant. Whatever the immunity is granted is strictly under Section 32A of the I&B Code. Granted. Subject to our directions in the para 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veral years. 16. In view of the approval of the Resolution Plan, the SRA has come into the shoes of the CD and when CD had applied for renewal of the leases, where period of the leases had expired, no exception can be taken to the direction of the Adjudicating Authority permitting the SRA to pursue the renewal application or to file application where renewal application has not been made. We, thus, are of the view that the prayers made on behalf of the Appellant to set aside paragraph 18 and Clause 9.2.1 of the sub-paragraph 20 of the order, cannot be accepted. 17. We, however, are of the opinion that Adjudicating Authority while approving the Resolution Plan or issuing direction contained in paragraphs 18 and 9.2.1 has to be treated not to have expressed any opinion with regard to renewal of the leases, which is in the domain of State of West Bengal. Only liberty to pursue the application was granted and the question of granting renewal is in the domain of the State Government. The Adjudicating Authority has not made any observation with regard to grant or non-grant of renewal of leases. We, thus, only clarify that directions of the Adjudicating Authority has to be treated, limi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
