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2022 Supreme(Online)(NCLAT) 1058
Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 1 of 34 NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI Company Appeal (AT)(Insolvency) No. 266 of 2020 [Arising out of order dated 6th December, 2019 passed by the Adjudicating Authority, National Company Law Tribunal, Kolkata Bench, Kolkata, in Misc. A. (IB) No. 622/KB/2019 in CP(IB) No. 421/KB/2017] IN THE MATTER OF: Punjab National Bank (Through Mr. Sachin Rathi, Sr. Manager) Hill Cart Road Branch, Siliguri Darjeeling- 734 001 .. Appellant Versus 1. Kamalesh Kumar Singhania Erstwhile Interim Resolution Professional And the erstwhile Resolution Professional In the matter of M/s Mintri Tea Co. Pvt. Ltd., Room No. 412 & 413 4th Floor, Bajrang Kunj 2B Grant Lane Kolkata – 700 012 .. Respondent No. 1 2. Dr. Pintso T. Namgyal Chief Manager, Punjab National Bank Hill Cart Road Branch, Siliguri Ward No. 6, Hill Cart Road, Siliguri West Bengal- 734 001 .. Respondent No. 2 (Proforma Party) 3. Mr. Pritam Ghosh, Senior Manager, Punjab National Bank, Hill Cart Road Branch, Siliguri Ward No. 6, Hill Cart Road, Siliguri West Bengal- 734 001 .. Respondent No. 3 (Proforma Party) Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 2 of 34 4. Mr. M.K. Thakur Chief Manager, Punjab National Bank, Circle Office, Burdwan 2nd Floor, Shri Durga Market, Grand Trunk Road, Police Lane Bazar P.O. Sripally, Burdwan- 713 103 West Bengal .. Respondent No. 4 (Proforma Party) 5. Mr. S.P. Das Chief Manager, Punjab National Bank, Circle Office, Burdwan 2nd Floor, Shri Durga Market, Grand Trunk Road, Police Lane Bazar P.O. Sripally, Burdwan- 713 103 West Bengal .. Respondent No. 5 (Proforma Party) 6. Mr. M.K. Singh Circle Head, Punjab National Bank Circle Office, Burdwan 2nd Floor, Shri Durga Market, Grand Trunk Road, Police Lane Bazar P.O. Sripally, Burdwan- 713 103 West Bengal .. Respondent No. 6 (Proforma Party) 7. Mr. Chandan Chakraborty Chief Manager, Punjab National Bank Circle Office, Burdwan 2nd Floor, Shri Durga Market, Grand Trunk Road, Police Lane Bazar P.O. Sripally, Burdwan- 713 103 West Bengal .. Respondent No. 7 (Proforma Party) 8. Mr. Rajeev Mishra, Chief Manager, Punjab National Bank Circle Office, Burdwan Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 3 of 34 2nd Floor, Shri Durga Market, Grand Trunk Road, Police Lane Bazar P.O. Sripally, Burdwan- 713 103 West Bengal .. Respondent No. 8 (Proforma Party) 9. Mr. Amit Sorin Manager, Punjab National Bank Circle Office, Burdwan 2nd Floor, Shri Durga Market, Grand Trunk Road, Police Lane Bazar P.O. Sripally, Burdwan- 713 103 West Bengal .. Respondent No. 9 (Proforma Party) 10. Mr. Om Prakash Manager Law, Punjab National bank Kolkata Zonal Office 18A, Brabourne Road, Chitpur, B.B.D. Bagh Kolkata, West Bengal- 700 001 .. Respondent No. 10 (Proforma Party) 11. Mr. L.K. Malhotra Zonal Manager, Kolkata Zonal Office, Punjab National Bank 18A, Brabourne Road, Chitpur, B.B.D. Bagh Kolkata, West Bengal- 700 001 .. Respondent No. 11 (Proforma Party) 12. Mr. Sunil Mehta Managing Director Punjab National Bank Plot No. 4, Sector 10, Dwarka New Delhi- 110 075 .. Respondent No. 12 (Proforma Party) 13. Insolvency and Bankruptcy Board of India 7th Floor, Mayur Bhawan Shankar Market Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 4 of 34 Cannaught Circus New Delhi- 110 001.
.. Respondent No. 13 (Proforma Party) Present: For Appellant: Mr. Rajesh Kr. Gautam, Advocate For Respondents: Mr. Pranay Agarwal, Ms. Anikita Baid, Advocates for R-1
JUDGEMENT
DR. ASHOK KUMAR MISHRA, TECHNICAL MEMBER The Present Appeal has been preferred by the Appellant-Bank against the impugned order dated 06.12.2019 passed by the National Company Law Tribunal, Kolkata Bench, Kolkata (Adjudicating Authority) in Misc. A. (IB) No. 622/KB/2019 in CP(IB) No. 421/KB/2017 titled as “Mr. Kamalesh Kumar Singhania Vrs. M/s Punjab National Bank & Ors.”. The Appellant- Bank has sought the following reliefs:
- a) Set aside the direction of the National Company Law Tribunal, Kolkata Bench in the impugned order dated 06.12.2019 passed in Misc. A. (IB) No. 622/KB/2019 in CP(IB) No. 421/KB/2017’ b) Make any other order as may be just and proper in the facts of the present case.
- Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 5 of 34 Submission of the Appellant:
2. The Appellant-Bank preferred an Application under Section 7 of Insolvency and Bankruptcy Code, 2016 (in short ‘Code’) against Mintri Tea Company Pvt. Ltd./Corporate Debtor which was admitted by the Adjudicating Authority on 20.09.2017. Mr. Kamalesh Kr. Singhania was appointed as Interim Resolution Professional. The Appellant-Bank being 100% sole Financial Creditor approved the appointment of the Resolution Professional in Committee of Creditors (in short ‘CoC’) meeting. It was also submitted by the learned Counsel for the Appellant-Bank that the Guarantor/Director of the Corporate Debtor/Mintri Tea Company Pvt. Ltd. paid total amount of Rs. 10.56 Crores to the Appellant-Bank towards the settlement of dues. They also agreed to pay Insolvency Resolution cost as part of the settlement. An application under Section 12A of the Code filed before the Adjudicating Authority for withdrawal of the Application, was dismissed by the Adjudicating Authority vide order dated 03.08.2018. Thereafter, an appeal was preferred by the Guarantor/Director of the Corporate Debtor before this Appellate Tribunal in Company Appeal (AT)(Insolvency) No. 456 of 2018 in the matter Krishna Kumar Mintri vs. Kamlesh Kumar Singhania & Anr. This Tribunal, vide its order dated 27.02.2019 allowed the Appeal of the Guarantor/Director and also directed the Corporate Debtor to pay the amount of the Resolution Professional within three weeks thereof. The only direction that the Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 6 of 34 Appellant-Bank will check the bills submitted by the Resolution Professional and approve the amount payable to him towards fees and resolution cost within two weeks. The Resolution Professional submitted a bill of Rs. 45,05,519/- and the Appellant-Bank paid a sum of Rs. 7,46,294/-. Learned Counsel for the Appellant-Bank submitted that they went through the bills produced by the Resolution Professional which were went through the bills produced by the Resolution Professional which were highly inflated for most part and did not reflect the true picture of actual expense incurred during Corporate Insolvency Resolution Process (in short ‘CIRP’). List of dates and events against the same are submitted below for having brevity and clarity on the subject:
- Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 7 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 7 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 8 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 8 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 9 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 9 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 10 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 10 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 11 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 11 of 34 Company Appeal(AT)(Insolvency) No. 266 of 2020 Page 12 of 34
3. Learned Counsel for the Appellant-Bank has submitted that the inflated bills so produced (a few examples are given below) … A. The Respondent No. 1 raised bills of his own company, AV Insolvency Prof
