Bhaskara Agro Agencies vs Super Agri Seeds Pvt. Ltd

M/s. Bhaskara Agro Agencies ...Appellant

Vs.

M/s. Super Agri Seeds Pvt. Ltd. ...Respondent

Present: For Appellant: -Mr. Judy James, Advocate.

ORDER

23.07.2018- The Appellant, one of the 'Resolution Applicants' has

preferred this appeal against the order dated 21st March, 2018 passed by

the Adjudicating Authority (National Company Law Tribunal), Hyderabad

Bench, Hyderabad, in CP (IB) 172/10/HDB/2017. By the impugned order,

the Adjudicating Authority passed order under Section 33 of the

Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B

Code") for liquidation of the Company in absence of any viable 'Resolution

Plan'.

2. There is a delay of five days in preferring the appeal. Taking into

consideration the grounds taken, we condone the delay.

3. Learned counsel appearing on behalf of the Appellant submitted that

'Resolution Plan' was viable and feasible but in spite of the same, it was

not approved by the 'Committee of Creditors'. The Adjudicating Authority

has failed to notice the aforesaid fact.

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4. It is further submitted that the 'Resolution Professional' had not

complied with the requirements made under Section 29(2) which should

have been provided to the 'Resolution Applicants' by allowing them to

access to relevant information. However, we find that the 'Resolution

Applicant' has already filed the 'Resolution Plan'.

5. It is submitted that the 'Resolution Applicant' has shown in the plan

to deposit Rs. 5 Crores in the form of Fixed Deposit, out of the said amount,

the 'Resolution Applicants' deposited Rs. 2 Crores. Further, undertaking

was given by the 'Resolution Applicant' (Appellant) that he will invest a

sum of Rs. 7 crores for purchase of the company seed processing facility

on sale and lease back to the company.

6. The same very impugned order dated 21st March, 2018 was

challenged by the Shareholders in another appeal on the ground that the

'Committee of Creditors' has wrongly held that there is no 'Resolution Plan'

in the eyes of law and therefore, they wrongly recommended for the

liquidation of the 'Corporate Debtor'. They submitted that if opportunity

would have been given to the (suspended) Board of Directors then they

could have been shown that there are other 'Resolution Applicants' who

were ready to submit the plans. This Appellate Tribunal taking into

consideration all the relevant facts by its judgment dated 11th July, 2018

in "Mr. S. Ravi Srinivas Vs. M/s. Super Agri Seeds Pvt. Ltd. & Ors.─

Company Appeal (AT) (Insolvency) No. 124 of 2018" dismissed the

Company Appeal (AT) (Insolvency) No. 380 of 2018 -3-

appeal. This Appellate Tribunal held that all the 'Resolution Plans' were

taken into consideration by the 'Committee of Creditors'. However, in

absence of any viable 'Resolution Plan' and due to paucity of time they

recommended for liquidation of the Company.

7. So far as viability or feasibility of 'Resolution Plan' is concerned, the

Adjudicating Authority or this Appellate Tribunal cannot sit in appeal over

the decision of the 'Committee of Creditors'. They are the experts to find

out the viability and the feasibility of a plan and the matrix. As the

aforesaid factors are technical in nature which can be determined by

experts like the 'Financial Creditors', we are not inclined to sit in appeal

over the decision of the 'Committee of Creditors' to find out whether one or

other 'Resolution Plan' is viable and feasible or not. We find no merit in

this appeal. It is accordingly dismissed. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member(Judicial) Ar/uk

Company Appeal (AT) (Insolvency) No. 380 of 2018