Gobins India Engineering Pvt. Ltd vs Basai Steels & Power Pvt. Ltd. & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 356 of 2018
Ratio decidendi
The rule this decision rests on
The Tribunal reasons on three points, each a ground for declining interference: An operational creditor holding less than 10% of the total debt is not entitled, by reason of that status alone, to be called to or attend meetings of the Committee of Creditors under Section 24 of the Insolvency and Bankruptcy Code, 2016. Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, as amended, is not applicable to an information memorandum and invitation of resolution applications where those steps were taken before the amendment came into force on 6 February 2018. An operational creditor who is not a resolution applicant cannot raise a grievance against the contents of the information memorandum where no resolution applicant has objected to it.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
M/s. Gobins India Engineering Pvt. Ltd. ...Appellant
Vs.
M/s. Basai Steels & Power Pvt. Ltd. & Ors. ...Respondents
Present: For Appellant: - Mr. Shailesh Madiyal and Mr. Sudhanshu Prakash, Advocate.
ORDER
19.07.2018─ The Appellant, 'Operational Creditor' has challenged the order dated 13th April, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad, whereby and whereunder the Adjudicating Authority approved the 'Resolution Plan' under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B Code") being satisfied that the plan meets all the requirements as provided under sub-section (2) of Section 30 of the 'I&B Code'.
2. Learned counsel for the Appellant submitted that the Appellant ('Operational Creditor') was not provided with all documents as was sought for from the 'Resolution Professional'. However, the 'Operational Creditors' having less than 10% of the total debt amount, in terms of Section 24, the 'Operational Creditors' or their representative were not supposed to be called for the meeting of the 'Committee of Creditors'.
Contd/-............
-2- 3. It was then submitted that the Regulations 36A (5) and 30(5) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2018 has not been followed. However, it is not disputed that liquidation value was estimated and shown in the 'Information Memorandum' by the 'Resolution Professional'.
4. Further, we find that the Regulation 36A which relates to the 'Invitation of Resolution Plans' came into force on 6th February, 2018 but from the letter of the Appellant dated 25th January, 2018, we find that step for preparation of 'Information Memorandum' was taken and applications were called for much prior to 6th February, 2018.
5. Further, as no 'Resolution Applicant' has raised any objection with regard to the 'Information Memorandum', the Appellant- 'Operational Creditor' being not the 'Resolution Applicant, cannot raise grievance.
6. For the reason aforesaid, we are not inclined to interfere with the impugned order dated 13th April, 2018. The appeal is accordingly dismissed. No cost.
(Justice S.J. Mukhopadhaya) Chairperson
(Justice Bansi Lal Bhat) Member(Judicial) Ar/uk
Company Appeal (AT) (Insolvency) No. 356 of 2018
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