NATIONAL COMPANY LAW APPELLATE TRIBUNAL

PRINCIPAL BENCH, NEW DELHI

Company Appeal (AT) (Insolvency) No.731 of 2020

[Arising out of Order dated 27^th February, 2020 passed by the Adjudicating

Authority (National Company Law Tribunal), Ahmadabad Bench, Ahmadabad

in I.A. No. 514 of 2019 in C.P. (IB) No. 04 of 2017]

IN THE MATTER OF:

Technology Development Board

Through – Assistant Law Officer

Vishwakarama Bhavan, Wing ‘A’,

Shaheed Jeet Sing Marg,

New Delhi – 110 016.

…Appellant

Versus

1. Mr. Anil Goel

Liquidator of Gujarat Oleo Chem Limited (GOCL),

AAA Insolvency Professional LLP,

E-104, Kailash Colony, Greater Kailash -1,

New Delhi – 110 048.

2. Stressed Asset Stabilisation Fund,

5^th Floor, IDBI Tower, WTC Complex,

Cuff Parade, Mumbai – 400 005.

3. Gujarat State Finance Corporation,

Block No. 10, Udyog Bhavan,

Gandhinagar – 382017.

….Respondent

Present:

For Appellant:

Mr. P. Vinay Kumar, Advocate & Ms. Nalini Negi, AR.

For Respondents: Mr. Kanishk Khetan, Advocate with Mr. Anil Goel,

Liquidator for R-1.

Mr. Pranab Kumar Mullick, Ms. Soma Mullick and

Mr. Deepak Kochhar, Advocates for R-2.

Mr. Indravadan R. Patel, Advocates for R-3.

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Company Appeal (AT) (Insolvency) No. 731 of 2020

J U D G M E N T

BANSI LAL BHAT, J.

The issue raised for consideration in this appeal is whether there can

be no sub-classification inter-se the Secured Creditors in the distribution

mechanism adopted in a Resolution Plan of the Corporate Debtor as

according priority to the first charge holder would leave nothing to satisfy

the claim of Appellant who too is a Secured Creditor.

2.

For determining the issue a brief reference to the facts is inevitable.

I.A. No. 514 of 2019 in CP (IB) 404/2017 was filed by the Appellant –

‘Technology Development Board’ being a Financial Creditor of ‘Gujarat Oleo

Chem Ltd.’ – the Company under liquidation. It was asserted in the

application before the Adjudicating Authority (National Company Law

Tribunal) Ahmadabad Bench, Ahmadabad that the Appellant was part of the

Committee of Creditors (CoC) having voting share of 14.54% in Corporate

Insolvency Resolution Process (CIRP) of ‘Gujarat Oleo Chem Ltd.’ and had

lodged its claim for Rs.24,78,68,595/- with the Liquidator, who while did

not call for meeting of Creditors for one and a half years but upon inability

of Appellant to attend meeting of Creditors scheduled for 9^th May, 2019

informed the Appellant that the sale proceeds had been distributed amongst

‘Stressed Asset Stabilisation Fund’ (Respondent No. 2) and ‘Gujarat State

Finance Corporation’ (Respondent No. 3) as security charge holders and

distributed Rs.9,59,03,179 to Respondent No. 2 and Rs.1,59,99,480 to

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Company Appeal (AT) (Insolvency) No. 731 of 2020

Respondent No. 3. The Appellant was aggrieved that its claim as Secured

Creditor was not considered. The Appellant contended before the

Adjudicating Authority that the distribution by the Liquidator was not in

consonance with the provisions of the Insolvency and Bankruptcy Code,

2016 (for short ‘I&B Code’) more particularly as the Appellant’s claim was

admitted and it was granted voting rights. The Appellant stressed that the

distribution had to be as per the admitted claims of Secured Creditors as

per their voting rights and the Appellant having 14.54% share was entitled

to Rs.1,62,70,647 in the total proceeds which have been wrongly distributed

by the Liquidator. Respondent No. 1 (Liquidator) contended before the

Adjudicating Authority that due to failure of CIRP, process for liquidation of

Corporate Debtor was set in motion on 17^th January, 2018 and the decision

on distribution of sale proceeds was made in accordance with Section 53 of

I&B Code. It was submitted that the Liquidator made the distribution of the

liquidation proceeds based on the interpretation of Section 53(2) as given in

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