Anil Goel vs 21 Capital Pcc

Anil Goel ...Appellant

Vs

2I Capital PCC ....Respondent

Present:

For Appellant: Mr. Kinshuk Chatterjee and Ms. Shivani Kadam, Advocates. For Respondent: Ms. Kiran Sharma, CS and Mr. Sumant Batra, Advocates.

ORDER

18.04.2019: Pursuant to Information Memorandum '2I Capital PCC'

(Respondent herein) deposited Rs.3.50 Crores in escrow account with the State

Bank of India. However, the resolution plan filed by '2I Capital PCC' having

withdrawn before approval of the plan by the Committee of Creditors, the '2I

Capital PCC' requested the Resolution Professional to allow it to withdraw

Rs.3.50 Crores, which was deposited in the escrow account with the State Bank

of India. The Resolution Professional rejected such prayer and forfeited the

amount, whereafter the Respondent '2I Capital PCC' moved before the

Adjudicating Authority, who in its turn by impugned order dated 26th November,

2018 directed the Resolution Professional to release the amount. The Appellant

- Resolution Professional has challenged the said order dated 26th November,

2018.

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2. We have heard learned counsel for the Resolution Professional and learned

counsel appearing on behalf of the Respondent - '2I Capital PCC'.

3. From the Minutes of meeting of Committee of Creditors, we find that the

Committee of Creditors made one of the condition for submitting resolution plan

by depositing of money like earnest money, which reads as follows:-

"i. Rs.3.50 Crores would be deposited in an Escrow Account

to be opened with State Bank of India within 10 days from the

conclusion of this meeting. In case the resolution plan is

finalized and by COC, the amount of Rs.3.50 Crores would be

considered as received against the outstanding loan.

Otherwise, the same will be returned to the resolution

applicant."

4. In the aforesaid background the Information Memorandum which

stipulated deposition of earnest money which was deposited by the Resolution

Applicants including Respondent - '2I Capital PCC', who deposited Rs.3.50

Crores in the escrow account with the State Bank of India. However, as noticed

above, the resolution plan was withdrawn by the Respondent prior to approval

of the Committee of Creditor, whereafter it wanted to withdraw the earnest

money amount.

Company Appeal (AT) (Insolvency) No. 36 of 2019 -3-

5. On bare perusal of the Minutes of the meeting of Committee of Creditors

and condition as made for calling for resolution plans, we are of the opinion that

the Respondent - '2I Capital PCC' having withdrawn its resolution plan prior to

its finalization is entitled for refund of Rs.3.50 Crore in absence of any penal

condition of seizure of earnest money. We find no merit in this appeal. It is

accordingly dismissed. No costs.

[Justice S. J. Mukhopadhaya] Chairperson

am/gc

Company Appeal (AT) (Insolvency) No. 36 of 2019