Devsaria Iron & Steel Co.Pvt. Ltd vs Resolution Professional Of Perfect ...

IN THE MATTER OF: Devsaria Iron and Steel Company Pvt. Ltd. ...Appellant

Versus

Resolution Professional of Perfect Boring Pvt. Ltd. ...Respondent Present: For Appellant: Mr. Akshay Amritanshu, Mr. Kartikey Singh, Mr. Ashutosh Jain and Mr. Amitabh, Advocates. For Respondent:

ORDER

(Virtual Mode)

15.02.2022: Heard learned counsel for the Appellant. This Appeal has

been filed against order dated 16.03.2021 passed by the Adjudicating

Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad,

Court 2 by which the Adjudicating Authority has allowed the application filed

by the Resolution Professional for approving the Resolution Plan submitted by

the Resolution Applicant.

2. Learned Counsel for the Appellant submits that Appellant was an

Operational Creditor and in the Resolution Plan he has been allocated only

1.5% of his dues. He further submits that Transaction Audit was done whose

report was also placed before the Committee of Creditors (CoC) but there was

no consideration of the said report and the Appellant's objection regarding the

aforesaid has not been considered. He submits that I.A. No. 308 of 2021 was

filed by him for conducting Forensic Audit, which is still pending before the

Adjudicating Authority and no order has been passed.

Cont'd.../ -2-

3. We have considered submissions of learned counsel for the Appellant

and perused the record.

4. The order impugned is the order by which Resolution Plan has been

approved. The allocation made to the Operational Creditor under the

Resolution Plan is the matter of commercial wisdom of the CoC and CoC

having approved the Resolution Plan with 96.37% vote share, we see no reason

to take any other view. In exercise of our jurisdiction under Section 61, the

amount allocated to the Operational Creditor could not be changed.

5. Insofar as the Transaction Audit, report was filed before the CoC. We

see no reason to come to conclusion that all materials that were before the

CoC were not looked into by the CoC before approving the Resolution Plan.

6. The application filed by the Appellant regarding Forensic Audit which is

said to be pending also does not have any effect on the approval of the

Resolution Plan by the Adjudicating Authority which approval has been

granted consequent to the application filed by the Resolution Professional after

approval by the CoC. We are of the view that no relief can be granted to the

Appellant in the present Appeal. Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Dr. Ashok Kumar Mishra] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No. 144 of 2022