Bank Of Baroda vs M/S Shree Rajasthan Syntex Limited

Bank of Baroda ...Appellant(s)

Versus

Shree Rajasthan Syntex Ltd. ...Respondent(s)

Present: For : Mr. Ashish Verma, Ms. Salonee Keshwani, Appellant/Applicant Advocates for BoB Mr. Krishnendu Datta, Sr. Advocate with Mr. Prakul Khurana, Mr. Ankit Sareen, Mr. Yash Tandon, Advocates for Applicant For Respondents : Ms. Suruchi Kasliwal Multani, Mr. Naresh Batra, Ms. Arti Sharma, Mr. Anand Chura, Advocates for R- 2 and R-3

ORDER

(Hybrid Mode)

06.02.2024: I.A. No. 817 of 2024. This is an Application praying for

following reliefs:-

"Therefore, in view of the aforesaid application and submissions made herein it is most respectfully prayed before this Hon'ble Appellate Tribunal that it may kindly be pleased to:

A. Modify the order dated 01.02.2024 passed by this Hon'ble Appellate Tribunal to the extent that it does not hinder the implementation of the Base Resolution Plan.

B. Pass any other order which this Hon'ble Appellate Tribunal may deem fit in favour of the Applicant Company."

2 2. In this Appeal, an Interim Order was passed on 20th November, 2023

which is to the following effect:-

"In the meantime, proceedings of implementation of the Resolution Plan may go on which shall abide by the result of the Appeal."

3. Subsequently, another order was passed on 01st February, 2024, which

is to the following effect:-

"01.02.2024 Learned Counsel for the SBI and IBBI are permitted to file their Vakalatnama as well as the Reply within two weeks as a last opportunity.

Sale of assets shall not take place till the next date.

List these Appeals on 29th February, 2024."

4. The Application have been filed praying for modification of the order

dated 01st February, 2024 to the extent that it does not hinder the

implementation of the base Resolution Plan.

5. Learned counsel for the Applicant submits that in the Resolution Plan,

an addendum was also furnished to the Financial Creditors and Lenders in

which details of sale of obsolete plant and machinery was also contemplated

and sale of plant and machinery was identified in clarification 3 which is to

the following effect:

3. Sale of Plant & Machinery: Our of Four manufacturing plants of the Corporate Debtor, it has been proposed to sell two plants viz.,-(a) Syntex Plant and (b) Polycot Plant along with captive Thermal Power Plant (TPP)

I.A. No. 817 of 2024 in Company Appeal (AT) (Insolvency) No.1492/2023 3

of 8.0 MW capacity which together is expected to realise Rs. 15.62 crore based on following Valuation of assets:

(Rs. Lacs) S. No. Plant Fair Market Liquidation Value Value 1 Syntex Plant 781.20 624.96 2 Polycot Plant 564.00 451.20 3 Thermal Power 352.21 281.77 Plant Total 1697.41 1357.93

6. It is submitted that the plan also contemplated payment of third

instalment by sale of obsolete plant and machinery and the SRA has taken

steps for the sale of obsolete plant and machinery to make the payment of

third instalment.

7. Learned counsel appearing for the Appellant opposing the submissions

submits that the Appeal itself may be heard and in event the plant and

machinery is permitted, the result may be irreversible. He further submits

that the order impugned does not merit confirmation and need to be interfered

with in this Appeal. It is submitted that impugned order is not in conformity

to another order passed by coordinate bench.

8. We have considered the submissions of Learned Counsel for the parties

and have perused the record.

9. When Interim Order was passed on 20th November, 2023, we provided

that proceeding for implementation of the plan may go on which shall abide

by the result of the Appeal. Learned Counsel for the Applicant submits that

the Applicant does not propose to sell any land and building of the assets and

I.A. No. 817 of 2024 in Company Appeal (AT) (Insolvency) No.1492/2023 4

sale which is contemplated in the sale of obsolete plant and machinery which

is only be permitted and only clarification to that extent may be issued.

10. In view of the aforesaid, we are of the view that since the sale of obsolete

plant and machinery was contemplated in the plan, we clarify that sale shall

be permitted and order dated 01st February, 2024 is clarified accordingly. We

however direct that in the sale of obsolete plant and machinery, the interim

order passed by this Tribunal on 20th November, 2023 may also be put as an

information so that the sale may take place subject to interim order dated 20th

November, 2023 which should be informed to purchasers.

11. With the above clarification, we dispose of the Application. Pleadings

are complete. List this Appeal on 19th February, 2024 at 02:00 pm.

[Justice Ashok Bhushan] Chairperson

[Arun Baroka] Member (Technical)

Basant/nn

I.A. No. 817 of 2024 in Company Appeal (AT) (Insolvency) No.1492/2023