JUDGEMENT

(Per: Shreesha Merla, Member (T)) 1. Aggrieved by the Impugned Order dated 04/12/2020 in I.A. No. 397 of 2020 in C.P. (IB) No. 586/NCLT/AHM/2019 passed by the Learned Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench, Ahmedabad, Court – II), M/s. Pani Logistics/‘The Financial Creditor’ preferred this Appeal. By the Impugned Order, the Adjudicating Authority has dismissed the Application preferred by the Liquidator seeking the following relief(s):

“i. Order and direct the substantive consolidation of the Corporate Debtor and the Respondents Nos. 2-6 into a single proceedings solely for the purpose of CIRP in accordance with the provisions of the Code, including but not limited to the acceptance, confirmation and all other actions with respect to the resolution plan for the Corporate Debtor and the Respondent Nos. 2-6 and any and all amendments or modifications thereto, in such consolidated proceedings;

ii. Order and direct that solely for the purpose of the consolidated proceedings, all assets and liabilities of the Corporate Debtor and the Respondent Nos 2-6 are consolidated and are deemed to be assets and liabilities of all the consolidated Corporate Debtors;

iii. That each and every claim filed in the individual proceedings against the Respondent Nos. 2&3 be deemed to be filed against the Corporate Debtor and Respondent Nos. 2-6;

iv. That the appointment of a common Resolution Professional be made in order to carry out the obligations and functions of a Resolution Professional in accordance with provisions of the Code for the consolidated proceedings;

v. That a common Committee of Creditors be constituted for the Corporate Debtor and the Respondents Nos. 2-6;

-4- Company Appeal (AT) (Insolvency) No. 04 of 2021 vi. That a comprehensive Resolution Plan dealing with the Corporate Debtor and the Respondent Nos 2-6 may be formulated and approved by the common Committee of Creditors and put up for approval before this Tribunal for its approval in accordance with the provisions of the Code;

vii. Any such order and/ or relief that this Hon'ble Tribunal deems fit in the interest of justice and equity.” 2. The Adjudicating Authority, while dismissing the Application, preferred by the Liquidator, observed as follows:

“6. It is a matter of record that the CIRP of the Corporate Debtor/Respondent No. 1, Sana Alloys Pvt. Ltd., admitted on 16.06.2020 vide C.P.(I.B) No. 586/2019. Thereafter, against the Ganga Advisory Pvt. Ltd. (Respondent No. 2) CIRP is initiated by the Adjudicating Authority on 24.01.2019 on filing an application under section 7 of the IB Code by Pani Logistics and thirdly against Neuromed Imaging Centre Pvt. Ltd., CIRP is initiated on 12.07.2019 by this Adjudicating Authority on filing an application by Mahaveer transport under section 7 of the IB Code.

separate orders of admission against the 3 different Companies (Corporate Debtors) having separate entities. Further, the CIRP is initiated on the basis of separate cause of actions, defaults and the amount due to the different creditors. As such, when these three companies are separate entities, the consolidation is not at all possible.

8. It is a matter of record that the Ganga Advisory Pvt. Ltd. and Neuromed Imaging Centre Pvt. Ltd. are under liquidation. It is also a matter of record that Respondent No. 1, 2 and 3 are not group companies, hence, the question of any consolidation of the properties does not arise at all.

9. Though, the Respondent No. 2, 3, 5 and 6 hold substantial share in the Corporate Debtor but mere shareholding does not mean that these are group companies. Had it been group company, there would have been a single order for initiation of CIRP. Since, -5- Company Appeal (AT) (Insolvency) No. 04 of 2021 the companies are holding separate entities and there is separate cause of action and date of default on the part of the Corporate Debtor, the CIRP proceeding has been initiated separately. Moreover