Gabs Megacorp Ltd vs Sutanu Sinha And Anr

GABS Megacorp Ltd. ...Appellant

Versus

Sutanu Sinha and Anr. ...Respondents

With

Company Appeal (AT) (Insolvency) No. 1027 of2020

IN THE MATTER OF:

GABS Megacorp Ltd. ...Appellant

Versus

Sutanu Sinha and Anr. ...Respondents

Present: For Appellant: Mr. Virendra Ganda, Sr. Advocate with Mr. Harsh Parashar, Mr. Vishal Ganda, Mr. Chanakya Sharma, Mr. Tanishq Mehta, Mr. Saransh Kothari, Mr. Anand Singh Sengar, Mr. Gaddam Aniketh Reddy and Mr. Ashok K. Singh, Advocates. For Respondents: Mr. Satendra K. Rai, Mr. Nirav Shah and Mr. Shashank Agarwal, advocates for R-1& 2 with Mr. Sutanu Sinha, R-1 in person.

ORDER

(Through Virtual Mode)

21.12.2020: Counter affidavit filed by Respondent No. 1 is taken on record.

2. Heard Shri Virendra Ganda, learned senior counsel representing the

Appellant and Shri Nirav Shah, learned counsel representing the Respondents.

Cont'd..../ -2-

3. The issue raised in this appeal relates to extension of time. According to

the Appellant, though time has been extended in terms of the impugned order

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

Hyderabad Bench, time taken in prosecution of application seeking extension

has not been taken care of. Thus, it is contended that the exercise has not

yielded the expected benefit.

4. After going through the counter affidavit filed by Respondent No. 1, it

emerges that the 'Lenders and Stakeholders Committee' has approved the

waiver of interest. Reference in this regard is made to Annexure 6 and

Annexure 7 of the Counter Affidavit at pages 47 and 48 respectively. It is

manifestly evident that prayer in regard to extension of time sought by the

Appellant remains uncontested as the 'Lenders and Stakeholders Committee'

have expressed their interest in getting the sale of the Corporate Debtor, in

favour of the Appellant, completed at the earliest. It would be conducive to the

interest of justice that period during which the Appellant had been agitating

before the judicial apparatus for waiver of interest to achieve the desired

objective of completing the sale of Corporate Debtor, is excluded. From the

minutes recorded on 8th December, 2020 (page 44 to 46 of the counter

affidavit), it comes to fore that the 90 days period in terms of Regulation 44 has

came to an end on 3rd December, 2020 whereas the Appellant has not

Company Appeal (AT) (Insolvency) No. 1026 of 2020 & 1027 of 2020 -3-

deposited any payment by 30th November, 2020 and the voting lines had been

extended till 3rd December, 2020. Thereafter, the matter was heard by this

Appellate tribunal and order directing status quo came to be passed, which is

to expire today. The period sought to be excluded in terms of Regulation 47A

has been worked out at page 45 in a tabular form which is reproduced herein

below:-

Liquidation Order 26-07-2019 Completion of 24-10-2020 Liquidation process as per Regulation 44

Period Exclusion (47A) Based on NCLAT order Based on NCLT order dated 03-12-2020 dated 29-09-2020 read with 11-11-2020 From 25-03-2020 25-03-2020 To 21-12-2020 03-09-202 0 No. of days 271 162

Last date of Liquidation 22-07-2021 04-04-2021 Process

5. According to this calculation the period required to be excluded is from

25th March, 2020 until today, that is the period of judicial intervention, which

has been calculated at 271 days and once this exclusion is permitted, the date

of liquidation process to be completed would be 22nd July, 2021. Having

Company Appeal (AT) (Insolvency) No. 1026 of 2020 & 1027 of 2020 -4-

regard to the fact that the Lenders and Stakeholders Committee have approved

the waiver of interest by 91.59% voting and there is justification for allowing

exclusion of the period of judicial intervention, we allow exclusion of 271 days

w.e.f. 25th March, 2020 till today, culminating in extending the liquidation

process until 22nd July, 2021. Since the notice period would commence from

tomorrow, i.e. 22nd December, 2020, the entire amount of Rs.1654.77 Crores

minus whatever advance payment has been made shall be paid by the

Appellant/Purchaser within a period of 90 days reckoned from 22nd December,

2020. It is being expressly made clear that in the event of such payment being

made by the Appellant/Purchaser within 30 days beginning from 22nd

December, 2020 no interest will be charged thereon. But in the event of

payment being made beyond 30 days but within 90 days, interest will be

chargeable as per IBBI Regulations. Appeal is allowed with aforesaid

observations and directions.

[Justice Bansi Lal Bhat] Acting Chairperson

[Justice Anant Bijay Singh] Member (Judicial)

[Dr. Ashok Kumar Mishra] Member (Technical) am/gc

Company Appeal (AT) (Insolvency) No. 1026 of 2020 & 1027 of 2020