Abk Hr Services Through Ashok Balwant ... vs Siddharth Milk Foods Pvt.Ltd. & Anr

ABK HR Services Through Ashok Balwant Karnik ...Appellant

Versus

Siddharth Milk Foods (India) Pvt. Ltd. & Anr. ...Respondents

Present: For Appellant: Mr. Rajat Kapoor, Advocate.

For Respondents: Mr. Chitranshul A. Sinha and Mr. Ravindra Chaturvedi, Advocates.

ORDER

(Virtual Mode)

04.03.2022: Heard learned counsel for the appellant. Mr. Chitranshul

A. Sinha, learned counsel appears for the Respondent. This Appeal has been

filed against order dated 03.08.2020 passed by the Adjudicating Authority by

which the Adjudicating Authority (National Company Law Tribunal), Court

No.1, Mumbai Bench has allowed the application filed by the Resolution

Professional under Section 30 sub-section (6) of the Insolvency and

Bankruptcy Code, 2016 (hereinafter referred to as 'Code'). The Adjudicating

Authority by the impugned order has approved the Resolution Plan. The

Appellant, an Operational Creditor, has come up in this Appeal challenging

the order of the Adjudicating Authority.

2. Learned counsel for the Appellant submits that the Operational

Creditor's total debt claimed was Rs.9,90,79,339/- and the plan only provides

for Rs.10 Lakhs to all Operational Creditors, which is arbitrary and

Cont'd.../ 2

discriminatory. He submits that the Appellant had no opportunity to appear

before the Committee of Creditors (CoC) or the Adjudicating Authority.

3. We have considered submissions of learned counsel for the Appellant

and perused the record.

4. The Resolution Plan which was submitted by the Resolution Applicant

was looked into as per the statutory scheme and on report submitted by the

Resolution Professional that the plan is in compliance with provisions of the

Code it was considered by the CoC and CoC in its 6th meeting approved the

plan by 80.35% vote of the members of the CoC. The submission of the

Appellant that less amount has been earmarked for Operational Creditor

cannot be ground to set aside the Resolution Plan which has been approved

by the CoC and the Adjudicating Authority. The commercial wisdom of the

CoC cannot be interfered with in exercise of Appellate Jurisdiction. The

challenge to the Resolution Plan can be entertained only on the ground as

contemplated under Section 61(3) of the Code. We are satisfied that no ground

within the meaning of Section 61(3) has been made out in the present Appeal

to interfere with the order of the Adjudicating Authority. We do not find any

error in the order of the Adjudicating Authority. The Appeal is dismissed

accordingly.

[Justice Ashok Bhushan] Chairperson

[Dr. Alok Srivastava] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No. 220 of 2022