K. N. Rajakumar vs V. Nagarajan - 2021 Supreme(SC) 497

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2021 Supreme(SC) 497

L.NAGESWARA RAO, B.R.GAVAI, B.V.NAGARATHNA
K. N. Rajakumar – Appellant
Versus
V. Nagarajan – Respondent

Advocates appeared:
For Appellant(s) Mr. Balaji Srinivasan, Ritin Rai, S. Santanam Swaminadhan, Kartik Malhotra, Abhilasha Shrawat, Aarthi Rajan, Advocates
For the Respondent(s):Caveator-in-person, Advocate
For the R-1/applicant in 5.1 :KV Vishwanathan, Arvindh Pandian, Balaji Srinivasan, Garima Jain, Pallavi Sengupta, Aakriti Priya, Mohammed Shahrukh, Prateek Yadav, Lakshmi Rao, Sandeep Kumar Ambalavanan, Advocates

Judgement Key Points

What is the scope of withdrawal of CIRP under Section 12A of the IBC and the role of the CoC voting with 90% approval? What is the proper interpretation of the Insolvency and Bankruptcy Code objectives in relation to revival of a corporate debtor versus liquidation? What are the implications of a CoC resolution to withdraw CIRP on the powers of RP and the status of the corporate debtor as a going concern?

What is the scope of withdrawal of CIRP under Section 12A of the IBC and the role of the CoC voting with 90% approval?

What is the proper interpretation of the Insolvency and Bankruptcy Code objectives in relation to revival of a corporate debtor versus liquidation?

What are the implications of a CoC resolution to withdraw CIRP on the powers of RP and the status of the corporate debtor as a going concern?

JUDGMENT :

B.R. GAVAI, J.

1. Both these appeals are being decided by this common judgment and order.

2. The appellant-D. Ramjee in Civil Appeal No. 2901 of 2021, who is an ex-employee of M/s Aruna Hotels Ltd. (hereinafter referred to as ‘the Corporate Debtor’) has approached this Court being aggrieved by the resolution passed in the 8th Committee of Creditors (hereinafter referred to as ‘CoC’) meeting dated 25.5.2021, the order passed by the National Company Law Tribunal, Chennai (hereinafter referred to as ‘NCLT’ or ‘the Adjudicating Authority’) dated 4.6.2021 thereby permitting withdrawal of Corporate Insolvency Resolution Process (hereinafter referred to as ‘CIRP’) in respect of the Corporate Debtor and the order passed by the Adjudicating Authority/NCLT dated 6.7.2021 thereby closing the proceedings initiated by D. Ramjee.

3. Civil Appeal No. 1792 of 2021 is filed by K.N. Rajakumar, suspended Director of the Corporate Debtor (respondent No. 1 in Civil Appeal No. 2901 of 2021 filed by D. Ramjee) thereby challenging the order passed by the National Company Law Appellate Tribunal, Chennai Bench (hereinafter referred to as ‘NCLAT’) dated 30.4.2021 dismissing the appeal filed by K.N. Ra

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2021 Supreme(SC) 497

L.NAGESWARA RAO, B.R.GAVAI, B.V.NAGARATHNAK. N. Rajakumar – AppellantVersusV. Nagarajan – Respondent

What is the scope of withdrawal of CIRP under Section 12A of the IBC and the role of the CoC voting with 90% approval?

What is the proper interpretation of the Insolvency and Bankruptcy Code objectives in relation to revival of a corporate debtor versus liquidation?

What are the implications of a CoC resolution to withdraw CIRP on the powers of RP and the status of the corporate debtor as a going concern?

Cases Referred (2)

L.NAGESWARA RAO, B.R.GAVAI, B.V.NAGARATHNA
K. N. Rajakumar – Appellant
Versus
V. Nagarajan – Respondent