Damodar Valley Corporation vs Venky Hi-Tech. Ispat Ltd. & Ors

Venky Hi-Tech Ispat Ltd & Ors Respondent

Mr. Gopal Jain, Ms Prashanti, Ms Srija Choudhury, Ms Madhumita Bhattacharjee, Ms Arti Jain, Ms Urmi De Dasgupta, Advocates for appellant. Mr. Arjun Asthana, Ms S Ghosh, Advocates for R1 & 3.

ORDER

11.12.2019- The appellant has challenged the order dated 08.01.2019

passed by the Adjudicating Authority, (National Company Law Tribunal),

Kolkata Bench, Kolkata approving the resolution plan submitted by

Respondent No.3, M/s Gliana Tradecom LLP. The appeal has been filed after

long delay on 14.10.2019.

2. Learned counsel appearing on behalf of the appellant submitted that

the distribution as made in favour of Damodar Valley Corporation, operational

creditor is arbitrary. On the other hand according to learned counsel

appearing on behalf of the successful Resolution Applicant, the Damodar

Valley Corporation has been paid a sum of Rs.78.09 lacs which is more than

liquidation value.

3. Learned counsel for the appellant submits that the claim amount is

Rs.16.19 crores which Corporate Debtor defaulted to pay and the amount now

offered/distributed is much less than 1%.

In the case of "Committee of Creditors of Essar Steel India Limited

through Authorised Signatory Vs Satish Kumar Gupta and ors-Civil

Appeal Nos 8766-67 of 2019 etc" the Hon'ble Supreme Court observed that

the NCLT/NCLAT cannot interfere with the distribution made by the COC

which is based on commercial wisdom and is not covered by any ground

under sub-section (3) of Section 61 of I&B Code. In view this fact, the question

of distribution of the amount amongst financial creditors and operational

creditors is within the domain of COC and this Appellate Tribunal has not

been provided with power to look into the validity of the resolution plan and

as per Section 61(3) we cannot reverse the decision of the COC so far it relates

to the distribution of amount.

4. In the present case we find that no ground is made out and the

grievance is against distribution which cannot be looked into by this Appellate

Tribunal. We are not inclined to interfere with the impugned order. The

appeal is dismissed. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member (Judicial)

(Justice Venugopal M) Member(Judicial) Bm/sk