An entity that has not submitted a resolution plan lacks locus standi to contest the validity of another approved resolution plan within insolvency proceedings.

ORDER

Per: Reeta Kohli, Member (Judicial)

I. I. The above application I.A. No. 1851 OF 2024 is filed by Astral Agro Ventures (hereinafter referred as the “Applicant”) seeking directions against Mr. Vakati Balasubramanyam Reddy & Ors. (hereinafter referred as the “Respondent/Respondents”) under Section 60 (5) of the Insolvency and Bankruptcy code, 2016 (hereinafter called “Code”), praying for following reliefs A. Allow the present Application;

B. Reject the resolution plan submitted by the SRA, and approved by the CoC;

C. Declare the SRA as ineligible under section 29A of the Code;

D. Order the removal of Respondent No. 1 as the RP of the Corporate Debtor, and direct the IBBI to initiate and enquiry into the conduct of the CIRP of the Corporate Debtor;

E. Appoint an independent resolution professional in respect of the Corporate Debtor; F. Direct the RP and the CoC to allow the applicant to submit its Resolution Plan and consider the same in fair and equitable manner;

G. Pass any other order or direction that this Hon'ble Tribunal deems fit and proper, in facts and circumstances of the present case II. Submissions of the Applicant

1. The present Application was filed by the Applicant, i.e., Astral Agro Ventures, which is a Prospective Resolution Applicant (“PRA”) of the Corporate Debtor, Megi Agro Chem Limited.

2. This Hon’ble Tribunal, vide its order dated 05.08.2022, initiated Corporate Insolvency Resolution Process ('CIRP') of the Corporate Debtor and Respondent No. 1, Mr. Vakati Balasubramartyam Reddy, was appointed as the Interim Resolution Professional (‘IRP’) and further, vide order dated 06.01.2023, was appointed as the Resolution Professional of the Corporate Debtor. Subsequently, Respondent No. 1 made Form G public announcements on 05.08.2022 and 04.10.2022, inviting Expressions of Interest ('EOI') from interested and eligible Prospective Resolution Applicants ('PRAs') for the Corporate Debtor, as provided under regulation 36(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ('CIRP Regulations’).

3. As submitted by the Applicant, due to non-receipt of any resolution plans, the Form G public announcement was republished on 05.07.2023, with the last date for receipt of EOIs set as 20.07.2023. Pursuant to the said public announcement, the Applicant, vide an email dated 18.07.2023, reached out to Respondent No. 1 seeking detailed invitation and eligibility criteria, which were subsequently provided.

4. As contented, the Applicant submitted the EOI regarding the CIRP of the Corporate Debtor on 20.07.2023, the said EOI was also accompanied by an Earnest Money Deposit ('EMD') of Rs. 5,00,000/- along with all requisite documents as mandated under regulation 36A(7) of the CIRP Regulations. Thereafter, Respondent No. 1 issued the Information Memorandum ('IM'), Evaluation Matrix ('EM'), and Request For Resolution Plan ('RFRP') to the Applicant on 26.07.2023. The initial last date for submission of the resolution plan was 03.09.2023, which was subsequently extended to 04.09.2023.

5. As stated, the Applicant, owing to unavoidable circumstances surrounding the EMD payment, sought a 15-day extension for submitting the resolution plan vide an email dated 04.09.2023 addressed to Respondent No. 1 and the same was also communicated to the Committee of Creditors ('CoC') on 06.09.2023. The said request of the Applicant was duly acknowledged by the CoC by guaranteeing consideration of the same in their next meeting.

6. Further, as su