ORDER

Per: Anuradha Sanjay Bhatia, Member (Technical)

1. The above Interlocutory Application, being and IA No. 1387/MB- V/2022, has been filed by G. S. Constructions, through its proprietor Mr. Sushil Uttarwar, the Applicant, under Section 60 (5) of IBC, 2016 (hereinafter “the Code”) r/w Rule 11 of NCLT, 2016, seeking following reliefs:

1.1 To quash and set aside the existing Committee of Creditors (hereinafter referred to as “CoC”) of the Corporate Debtor;

1.2 Declare all the acts and decisions undertaken by such CoC as void and non-est;

1.3 To direct the Respondent No. 1 to call for the outstanding dues of home buyers and allot the completed villas and studios;

1.4 To direct the Respondent No. 1 to reconstitute the CoC in compliance with the provisions of the Code;

1.5 To direct the Respondent No. 1 to reconsider the Resolution Plans afresh and call for fresh votes on each Resolution Plan or to direct the Respondent No. 1 to recalculate the voting percentage on the Resolution Plan;

1.6 To direct the Respondent No. 1 to negotiate and hand over unsold and completed villas and studios to claimants;

1.7 To reject the Resolution Plan submitted by Mrs. Asha Sanap as the same has been approved by an invalid and wrongly constituted CoC; and

1.8 To remove the Respondent No. 1 and 2 from the CIRP of the Corporate Debtor for dereliction of their duties.

BRIEF HISTORY OF THE CASE:

2. The brief history of the case is as under:

2.1 The M/s. G. S. Constro & Infra Pvt. Ltd. & Ors are the investors and shareholders of M/s. E & G Global Estates Limited, the Corporate Debtor, having approximately 48% of the shareholding of the Company. The Corporate Debtor was in need of funds to complete the construction of the Resort Project and therefore M/s. G. S. Constro & Infra Pvt. Ltd. & Ors have infused funds into the Company, on the undertaking that 100% shares would be transferred to them. Accordingly, an MoU dated 10.12.2018 was entered into between the parties, whereby M/s. G. S. Constro & Infra Pvt. Ltd. & Ors paid Rs.75 lakh to SIDBI, towards the part payment of the loan amount, thereby saving the Company from becoming an NPA.

2.2 M/s. G. S. Constro & Infra Pvt. Ltd. & Ors vacated the post of ‘Additional Directors’ since an AGM was never conducted for including them as a Director, but the RoC portal was not updated, and they continued to remain as Additional Directors.

2.3 Thereafter, the Financial Creditor, SIDBI, had filed a Company Petition No. 2995 of 2019 under Section 7 of the Code, against the Corporate Debtor. In Part-IV of Form 1, under the head “Particulars of Financial Debt” the total amount claimed to be in default is Rs.3,85,15,033/-.

2.4 The Bench-V, Mumbai, after hearing the Company Petition No. 2995 of 2019, reserved for orders on 05.09.2019. Thereafter, Intervener Application, being MA No. 3182 of 2019, was filed on 19.09.2019 in the Company Petition No. 2995 of 2019, by M/s. G. S. Constro & Infra Pvt. Ltd. and its promoters against the Corporate Debtor. The Applicants in this MA claimed to be the part owners of the Corporate Debtor’s Company, came forward to settle the dues of the Corporate Debtor. The draft Consent Terms were also filed before the Bench, by the Intervener Applicant for the Corporate Debtor but the Intervener Applicant as well as the Corporate Debtor never honoured the Consent Terms.

2.5 Accordingly, this Tribunal vide Order dated 24.06.2020 admitted the Company Petition No. 2995 of 2019 into CIRP and Dismissed the Intervener Application, MA No. 3182 of 2019 giving the Applicants ample time to settle the dues of Financial Creditor, SIDBI.

2.6 By virtue of the Order dated 24.06.2020, the Interim Resolution Professional commenced the Resolution Process and M/s. G. S. Constro & Infra Pvt. Ltd. & Ors. submitted their claim in Form C with the Interim Resolution Professional. The claim was submitted in the capacity of Financial Creditor. The same was rejected by the Interim Resolution Professional. Aggrieved by this, M/s. G. S. Constr