1

Company Appeal (AT) (Insolvency) No. 518 of 2020

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

Company Appeal (AT) (Insolvency) No. 518 of 2020

IN THE MATTER OF:

Kalinga Allied Industries India Pvt. Ltd.

Having Its Registered Office at:

CCC/23, Civil Township,

Rourkela Sundargarh, Orissa-769004

…Appellant

Versus

1. Hindustan Coils Ltd.

Having Its Registered Office at:

Plot No. 19-20, Phase-I, Siltara Industrial Area,

Raipur (Chhattisgarh) - 492001

…Respondent No. 1

2. Bindals Sponnge Industries Ltd. (Under CIRP)

Through Mr. Dinesh Sood (Resolution Professional)

Having Its Office at:

C/o Yogakshem Insolvency Professionals LLP,

UGF, 1/15 Tilak Nagar, New Delhi – 110018

... Respondent No. 2

3. Committee of Creditors

Through Mr. Dinesh Sood (Resolution Professional)

Having Its Office at:

C/o Yogakshem Insolvency Professionals LLP,

UGF, 1/15 Tilak Nagar, New Delhi – 110018

… Respondent No. 3

Present:

For Appellant:

Mr. Abhijeet Sinha, Mr. Rakesh Wadhwa and

Mr. Sanwal Tiberwal, Advocates.

For Respondents: Mr. Virender Ganda, Sr. Advocate with Mr. Vipul

Ganda, Mr. Vishal Ganda, Mr. Ayandeb Mitra and

Ms. Shelly Khanna, Advocates.

2

Company Appeal (AT) (Insolvency) No. 518 of 2020

Mr. IPS Oberoi, Advocate for R-2 with Mr. Dinesh

Sood, RP.

J U D G M E N T

Jarat Kumar Jain, J:

The Appellant, Kalinga Allied Industries India Pvt. Ltd. filed this

Appeal against the impugned order dated 27.02.2020 passed by Ld.

Adjudicating Authority (National Company Law Tribunal) Special Bench,

New Delhi. Whereby allowed the Interlocutory Application No. 1513 (PB) of

2020 filed by M/s Hindustan Coils Ltd. (respondent No. 1) and directed that

the application along with the proposed plan of respondent No. 1 be placed

before committee of creditors (in short, COC) for consideration.

2.

Brief facts of this case are that pursuant to the expression of interest

issued by RP on 24.08.2018, the Appellant submitted a Resolution Plan in

time. After several rounds of deliberations by the COC revised Resolution

Plan was submitted by the Appellant on 19.12.2018. The same was

approved by the COC by requisite majority in the 13^th meeting on

28.12.2018. Thereafter, the RP filed an Application under Section 30(6) of

the Insolvency & Bankruptcy Code (In short I&B Code) for approval of

Resolution Plan in the month of January, 2019. Thereafter, various

objections were filed before the Adjudicating Authority which were heard

and disposed of. Sometime in the month of February 2020, the Respondent

No. 1 filed an application I.A. No. 1513 (PB) of 2020 seeking direction for

3

Company Appeal (AT) (Insolvency) No. 518 of 2020

consideration of its Resolution Plan which is 12% more than the offer of the

successful Resolution Applicant (Appellant herein).

3.

Learned Adjudicating Authority after hearing the parties held that the

Respondent No.1 offers to pay Rs. 50.01 Crore which is Rs. 4.9 Crore more

than offered by the successful resolution applicant (Appellant). It is also held

that the object of the I&B code encourages maximization of the value of

assets of the corporate debtor, which is also advantageous to all the

stakeholders. Therefore, it is directed that the proposed plan of the

Respondent No. 1 be placed before the COC for consideration. Being

aggrieved with this order, the Appellant has filed this Appeal.

4.

Learned Counsel for the Appellant submitted that Ld. Adjudicating

Authority has no Jurisdiction to entertain any Application from a person

who has not participated in Corporate Insolvency Resolution Process (In

short CIRP) for consideration of a purported better plan or a plan with a

better value ignoring the statutory time lines under Section 12 of the I&B

Code and even assuming jurisdiction, there was no occasion for the Ld.

Adjudicating authority to pass a direction to the COC to conside