Lovely Securities Private Limited vs Nature India Communique Limited ...

Lovely Securities Pvt. Ltd. Resolution Applicant ...Appellant

Versus

Nature India Communique Ltd. (Through its Liquidator Sh. Prabhat Jain) & Ors. ...Respondents

Present: For Appellant: Mr. Milan Singh Negi and Mr. Nikhil Kumar Jha, Advocates. For Respondents:

ORDER

(Hybrid Mode)

11.01.2024: This Appeal has been filed against the order dated

30.10.2023 passed by the Adjudicating Authority by which the Adjudicating

Authority has rejected the Resolution Plan submitted by the Appellant. The

Appellant has submitted a Resolution Plan to take the Corporate Debtor and

resultantly the Appellant shall become a listed company. Appellant is not a

listed company, however, the Corporate Debtor is a listed company. In Para

28, the Adjudicating Authority made following observations:

"28. However, in view of the above discussion, this Adjudicating Authority is of the considered view that neither the Listing Status of the Corporate Debtor (Transferor Company) can automatically be transferred to the Successful Resolution Applicant (Transferee Company) nor the suspension of Listing can be invoked by virtue of the merger/amalgamation

Cont'd.../ -2-

of the Corporate Debtor into the Successful Resolution Applicant, as the same would be in violation of Section 232(3)(h)(A) of the Companies Act, 2013. Therefore, the Resolution Plan in its present form which is in contravention of Section 232(3)(h) of the Companies Act, 2013 and is not legally implementable and hence, the same is hereby rejected as being violative of Section 30(2)(e) of the Code, 2016."

2. The Adjudicating Authority took the view that the plan is not in

compliance with the provision of the Companies Act, 2013. We further notice

that the total plan value of the Appellant was Rs.10 Lakh out of which Rs.6

Lakhs was CIRP Cost. The Adjudicating Authority has directed for liquidation.

We see no reason to interfere with the impugned order passed by the

Adjudicating Authority. It was always open for the Appellant to participate in

the liquidation process. Appeal is dismissed.

Learned counsel for the Appellant submits that the liquidation value

given in Form H is NIL.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No.26 of 2024