Idbi Bank Limited (On Behalf Of The Coc ... vs Mr. Ram Ratan Kanoongo Resolution ...

IDBI Bank Ltd. ....Appellant (on behalf of the CoC members of Mudra Denim Pvt. Ltd.)

Vs.

Mr. Ram Ratan Kanoongo ....Respondent Resolution Professional of Mudra Denim Pvt. Ltd.

Present: For Appellant: Mr. Rishi Thakur and Ms. Prachi Johri, Advocates For Respondent: Mr. Ayush J. Rajani, Advocates

ORDER

(Hybrid Mode)

22.1.2025 - Heard learned Counsel for the Appellant as well learned

Counsel for the Resolution Professional.

This Appeal has been filed against the Order dated 11.11.2024 by which

the Adjudicating Authority while deciding I.A. No.5158 of 2024 seeking extension

of time, has imposed cost of Rs.55,000/- on the COC members. Aggrieved by the

said Order, the COC through IDBI Bank has filed the Appeal. The learned

Counsel for the Appellant submits that the COC in its meeting held on 13th

December, 2023 has deliberated on the plan and decided to take the Corporate

Debtor under liquidation. It is submitted that thereafter a joint lenders meeting

was held on 5th January, 2024 and Mr. Prashant Jain was proposed Liquidator.

It is submitted that thereafter the RP filed the application on 9th February, 2024

for liquidation. The learned Counsel for the Appellant submits that no member 2

of the COC was heard before imposing cost and further there was not any laxity

on the part of the COC on which cost could be imposed. On 13th December, 2023

meeting i.e. prior to expiry of the CIRP period, decision was taken to take the

Corporate Debtor for liquidation before the Adjudicating Authority. All facts

could not be brought into the notice since the COC was not appearing before the

Adjudicating Authority, hence the imposition of cost was uncalled for. Learned

Counsel for the RP submits that e-voting on appointment of Liquidator

completed on 5th January, 2024, hence application was filed on 9th February,

2024. There are facts which indicate that there was sufficient reason for filing

the application on 9th February, 2024 by the RP and COC which cannot be held

to be committing such laxity which may warrant imposition of cost.

We thus are satisfied that imposition of cost by the impugned Order

deserves to be set aside. We allow the Appeal and delete the cost of Rs.55,000/-

imposed on COC. The Appeal stands disposed of.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical)

rs/nn

Comp. App. (AT) (Ins) No.2315 of 2024