Department Of State Tax vs Cyclo Transmissions Limited & Anr

Department of State Tax ...Appellant

Versus

Cyclo Transmissions Ltd. & Anr. ...Respondents

Present: For Appellant: Mr. Rahul Chitnis and Mr. Aaditya Pande, Advocates. For Respondents: Mr. Manish Jha, Advocate for R-2.

ORDER

(Virtual Mode)

30.11.2021: Heard Learned Counsel for the Appellant. This Appeal has

been filed against the order passed by the Adjudicating Authority (National

Company Law Tribunal), Mumbai Bench dated 16.07.2021 by which the

Application filed by the Resolution Professional for approval of the Resolution

Plan has been allowed. The Appellant before us is Department of State Tax who

has also filed their claim regarding statutory dues. Total claim was

Rs.7,06,34,158/- out of which in the Resolution Plan only 1.07% was admitted

and paid to the Appellant. The Resolution Plan has been approved by the

Adjudicating Authority after considering all aspects of the matter. It is also not

disputed that with regard to claim of the Appellant 1.07% was allocated and paid

as per the Resolution Plan.

Cont'd.../ 2

2. We do not find any error in the judgment of the Adjudicating Authority

approving the Resolution Plan. The mere fact that the Appellant could receive

only 1.07% of their clam in the Resolution Plan could not be a ground to set aside

the acceptance of Resolution Plan. We do not find any merit in the Appeal. The

Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Justice Jarat Kumar Jain] Member (Judicial)

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

Company Appeal (AT) (Insolvency) No. 972 of 2021