Lora Mitra Rath vs Pradip Kumar Kar And Ors

IN THE MATTER OF: Lora Mitra Rath ...Appellant Versus Pradip Kumar Kar & Ors. ...Respondents

Present: For Appellant : Mr. Sumesh Dhawan, Mr. Saswat Kumar Acharya and Mr. Dhananjay Bhaskar Ray, Advocates.

For Respondents : Mr. Aditya Kumar and Ms. Ila Nath, Advocates for R-5.

Mr. Pradeep Kumar Kar, Liquidator and Mr. Shashwat Anand, Advocate for R-1.

Mr. Aditya Kanodia, Advocate for R-4.

Mr. Patita Paban Bishwal, Advocate for Liquidator.

ORDER

(Hybrid Mode)

22.10.2024 : Heard Learned Counsel for the Appellant, Counsel

appearing on behalf of Bank of India, as well as Counsel for the Liquidator

and Counsel for the Respondent No. 4.

2. This Appeal has been filed against an Order dated 28.02.2024 passed

by the Learned Adjudicating Authority (National Company Law Tribunal,

Cuttack Bench, Cuttack) in I.A. (IB) No. 96(CB)/2023. Application was filed

by Resolution Applicant to exclude the period from 01.11.2021 to 07.11.2022

for the period of one year to implement the Resolution Plan approved by the Adjudicating Authority on 01.11.2021. Adjudicating Authority by the

Impugned Order has rejected the Application.

3. Aggrieved by the said Order, Appellant has come up in this Appeal.

4. Learned Counsel for the Appellant had contended that the Appellant is

ready to deposit the balance amount of the Resolution Plan i.e., Rs.7.34 Crore.

5. On 18.09.2024, following Order was passed:

"1. Ld. Counsel for the Appellant submits that the total amount under the plan was Rs. 9.84 Crore out of which Rs. 2.5 Crore was already paid and the balance amount Rs. 7.34 Crore could not be paid and for which application was filed for extension of time on which the impugned order dated 28.02.2024 has been passed.

2. Ld. Counsel for the Bank of India who has 67% of vote share has filed an affidavit and submits that Bank of India has no objection in appellant making the payments within four weeks.

3. Counsel for the Appellant submits that amount of Rs. 5 Crore shall be paid within three days in the CD's account.

4. Counsel for the Respondent No.4 has already filed a reply. Let the Appellant deposit the entire amount Rs. 7.34 Crores within four weeks from today.

5. List this appeal again on 22.10.2024."

6. The Bank of India who has 67% Vote Shares in the CoC had filed an

Affidavit. In Paragraphs 14 & 15 of the Affidavit, following has been pleaded:

"14. That, the answering respondent only wishes to reiterate the submission that was made by it before the learned adjudicating authority, and which was duly taken note of by the learned adjudicating authority in paragraph 2 of the impugned order, i.e., that the answering respondent does not have any objection in case the application seeking exclusion of time of approximately one year, which relates to the period when Company Appeal (AT) (Insolvency) No. 104/2022 was pending before this Hon'ble Tribunal were to be allowed.

15. That, the no-objection of the answering respondent with respect to exclusion of time for reckoning the

Comp. App. (AT) (Ins.) No. 1350 of 2024 & I.A. No. 4532, 4876 of 2024 2 of 4 implementation period of the resolution plan is only in view of the fact that it would always be preferable to resolve the corporate debtor, as is the legislative intent. The answering respondent submits that it is in the interest of all financial creditors and other stakeholders of the corporate debtor that the CIRP culminates into resolution of the corporate debtor, instead of liquidation, as has been directed by the impugned order."

7. Learned Counsel for the Appellant submits that entire balance amount

has been paid in the account of the Corporate Debtor.

8. Liquidator is present as well as his Counsel submits that they have

incurred liquidation expenses of Rs.10.5 Lakhs and Liquidator also claimed

that they are entitled for the fee.

9. Learned Counsel for the other Financial Creditors also pray that

amount be distributed as per the Plan. The entire amount has been deposited

in the account of the Corporate Debtor, Liquidator shall distribute the amount

to the Creditors as per the Resolution Plan. Appellant shall make payment of

Rs.10.5 Lakhs to the Liquidator towards the liquidation cost within two weeks

from today by a Bank Draft or by RTGS.

10. We grant liberty to the Liquidator to file an Application before the

Adjudicating Authority with regard to entitlement of fee, if any, which may be

decided in accordance with law.

11. In view of the fact that Financial Creditors have expressed their

willingness to accept the amount of the Resolution Plan, we are of the view

that time as prayed was required to be extended by the Adjudicating

Authority.

12. Without entering into merits of the other issues in the facts of the

present case to ensure the revival of the Corporate Debtor and resolution as

Comp. App. (AT) (Ins.) No. 1350 of 2024 & I.A. No. 4532, 4876 of 2024 3 of 4 is the submissions of both the Parties we allow the Appeal, set aside the Order

of the Adjudicating Authority and dispose of the Appeal.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) himanshu/nn

Comp. App. (AT) (Ins.) No. 1350 of 2024 & I.A. No. 4532, 4876 of 2024 4 of 4