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2024 Supreme(Online)(NCLAT) 1198
NATIONAL COMPANY LAW APPELLATE TRIBUNAL
ASHOK BHUSHAN, J
Protima Arora – Appellant
Versus
Maya Gupta – Respondent
Company Appeal (AT) (Insolvency) No. 72 of 2024 | Company Appeal (AT) (Insolvency) No. 129 of 2024 | Company Appeal (AT) (Insolvency) No. 204 of 2024
For the Appellants/Petitioners: Mr. Amar Dave, Mr. Siddharth Chapalgaonkar, Ms. Sneha Botwe
For the Respondents: Mr. Kunal Godhwani
The approval of a resolution plan remains valid despite the corporate debtor being struck off, provided the company is restored before the plan's approval.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 7 - Corporate Debtor struck off - Approval of Resolution Plan leading to resolution of the Corporate Debtor's debts - The Appellant contended that the Corporate Debtor’s striking off rendered the CIRP void, but the Tribunal established it was active through restoration by the Registrar of Companies and that it represents ongoing debts which could not be evaded by dissolution. (Paras 10, 11, 13, 19)
(B) Commercial Wisdom - The Tribunal underscored that the approval of the Resolution Plan should reflect the commercial wisdom of the Committee of Creditors. The Appellants' claims submitted after approval were rejected based on proper timelines as per the established protocols. (Paras 17, 18)
(C) Claims - The Appellants, due to failing to submit claims before the Resolution Plan’s approval, did not hold grounds for appeal against the approved plan. (Paras 17, 19)
| Table of Content |
|---|
| 1. overview of appeals regarding approval of resolution plan. (Para 2 , 3) |
| 2. arguments regarding the existence status of the corporate debtor. (Para 5 , 6) |
| 3. court observations on timing and legitimacy of claims. (Para 11 , 12 , 13) |
| 4. rejection of claims filed after resolution plan approval. (Para 17 , 19) |
JUDGMENT
ASHOK BHUSHAN, J.
These three Appeals have been filed against same order dated 12.10.2023 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, Court-VI by which order I.A. No.678/ND/2023 filed by the Resolution Professional for approval of the Resolution Plan submitted by ACAIPL Investment and Financial Services Private Limited has been approved.
2. Company Appeal (AT) (Ins.) No.72 of 2024 has been filed by Protima Arora claiming to be Ex-Director of the Corporate Debtor. Company Appeal (AT) (Ins.) No. 129 of 2024 is filed by Pooja Film Company, who claim to have filed its claim as Financial Creditor in the CIRP of the Corporate Debtor. Company Appeal (AT) (Ins.) No. 204 of 2024 is filed by Pooja Entertainment and Films Limited, who also claim to filed its claim as Financial Creditor. Aggrieved by the order approving the Resolution Plan, there Appeals have been filed.
3. We need to first notice the brief facts of the case giving rise to these appeals:
Company Appeal (AT) (Ins.) No.72 of 2024
(i) An application was filed for initiation of CIRP against the Corporate Debtor on 19.07.2019. The application under Section 7 was filed by the Financial Creditor - Easy Trip Planners Limited claiming default of Rs.14,34,12,840/-.
(ii) Notice was issued by Tribunal and the Corporate Debtor filed its reply opposing Section 7 application. One of the grounds taken in the reply was that application has been filed against a non-existent company. It is submitted that the company has already been struck off by the Registrar of Companies vide its notice dated 29.10.2019.
(iii) The Adjudicating Authority after hearing objection of the Corporate Debtor, by order dated 11.02.2022 admitted Section 7 application and appointed Ms. Maya Gupta as IRP. Ms. Maya Gupta was confirmed as Resolution Professional by order dated 29.03.2022.
(iv) Form G was published by the Resolution Professional in response to which ACAIPL Investment and Financial Services Private Limited submitted Expression of Interest. The Financial Creditor having found the Resolution Plan commercially viable approved the same by 100% voting share on 04.11.2022.
(v) An application being I.A. No.678/ND/2023 was filed by the Resolution Professional for approval of the Resolution Plan which has been approved by order dated 12.10.2023. Appellant-Protima Arora claiming to be Ex-Director of the Corporate Debtor has filed this appeal challenging the approval of Resolution Plan.
Company Appeal (AT) (Ins.) No.129 of 2024
(i) Appellant claim to have entered with the Corporate Debtor various Memorandum of Agreements (MOAs). Appellant claim to have filed claim in Form C on 10.04.2023 i.e. subsequent to approval of Resolution Plan by the CoC.
(ii) The Resolution Professional did not accept the claim of the Appellant.
(iii) Appellant filed an I.A. No.4047 of 2023 before the Adjudicating Authority seeking direction to accept the claim of the Appellant which claim was rejected by order dated 16.08.2023.
(iv) The Adjudicating Authority by order dated 12.10.2023 has approved the Resolution Plan of the Corporate Debtor, aggrieved by which order this Appeal has been filed.
Company Appeal (AT) (Ins.) No.204 of 2024
(i) Section 7 application against the Corporate Debtor was admitted on 11.02.2022. Appellant claim to file its claim in prescribed Form C on 10.04.2023.
(ii) Appellant aggrieved by order dated 12.10.2023 approving the Resolution Plan come up in this Appeal.
4. We have heard Shri Amar Dave, learned counsel appearing for the Appellant in Company Appeal (AT) (Ins.) No.72 of 2024. Ms. Shwetal Shepal, learned counsel has appeared for the Appellant in Com
