Ganesh Ores Private Limited vs Vijaykumar V. Iyer & Anr

Ganesh Ores Pvt. Ltd. ...Appellant

Versus

Vijaykumar V. Iyer & Anr. ...Respondents

Present: For Appellant: Mr. P. Nagesh, Sr. Advocate with Mr. Dhananjay Bhaskar Ray, Mr. Shouryaditya, Mr. Akshay Sharma, Advocates. For Respondent: Mr. Rajesh Kumar Gautam, Mr. Anant Gautam, Ms. Anani Achumi, Advocates for CoC Mr. Sumesh Dhawan, Mr. Abhijeet Sinha, Ms. Akanksha Kaushik, Mr. Saikat Sarkar, Advocates for R2.

ORDER

24.08.2023: Heard learned counsel for the Appellant. This Appeal has

been filed against the order dated 20.03.2023 by which the application filed

by the Appellant being I.A. No. 273/CB/2022, where Appellant made following

prayer, has been rejected:

"A. Pass an order declaring that the impugned distribution mechanism is illegal and arbitrary;

B. Pass an order directing the respondent to put issue before the Committee of Creditors for reconsideration;

C. Pass an order directing the said distribution mechanism must be finalised considering all the points raised by the applicant in the present application;"

Cont'd.../ -2-

2. Shri P. Nagesh, learned counsel for the Appellant submits that in the

16th CoC meeting the Appellant was offered Rs.4.56 Crores and in the 17th CoC

meeting again offer to the Appellant was more than what it has been offered.

In the 18th CoC meeting held on 23.09.2022, now, the Appellant has been

given Rs.5.23 Crores. It is submitted that the plan was also approved in 18th

CoC meeting held on 23.09.2022 and Appellant also assented to the Plan. It

is submitted that the Appellant has also raised objection regarding the

distribution and voted against the distribution mechanism.

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

and perused the record.

4. In the 18th CoC meeting held on 23.09.2022, the plan was approved by

the CoC and the distribution mechanism was also taken in the consideration

for deliberation by the CoC. Distribution Mechanism was also approved, in

which the Appellant was given Rs.5.23 Crores in the plan of Indrani Pattnaik.

In the meeting of the CoC, plan as well as distribution mechanism being

approved, allocation to Appellant has to be given effect to. Appellant although

claims to have raised objection to the distribution mechanism but the plan

having been approved which plan stipulate distribution mechanism by the

CoC, distribution mechanism has to be accepted as decided in 18th CoC

meeting and whatever amount has been allocated to the Appellant, Appellant

cannot be heard against same.

Company Appeal (AT) (Insolvency) No.830 of 2023 -3-

5. Learned counsel for the Appellant submits that the distribution is

unjust as unsecured creditors has been allocated less amount than secured

creditors. We are of the view that there can be difference in payment to the

secured and unsecured creditors in the plan approved as per the commercial

wisdom of the CoC. We do not find any merit in the Appeal. Appeal is

dismissed.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

Archana/nn

Company Appeal (AT) (Insolvency) No.830 of 2023