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Manish Gupta vs Respondent

National Company Law Appellate Tribunal20 July 2021

Ratio decidendi

The rule this decision rests on

The Appellate Tribunal will not decide, at this stage, the merits of a dispute over the voting on resolution plans that is pending before the Adjudicating Authority; that question is for the Adjudicating Authority to decide first and is not examined by the Appellate Tribunal in an appeal of this kind. Where the record shows that viable resolution plans were received and were under consideration by the Committee of Creditors, the Appellate Tribunal may remit the matter to the Adjudicating Authority to take an overall view of the matter, to consider whether such plans are genuinely viable, and, if the interests of justice so require, to grant time so that a resolution may be reached if possible, the exercise of that judicial discretion being for the Adjudicating Authority alone and uninfluenced by the Appellate Tribunal's observations.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Company Appeal (AT) (Insolvency) No. 466 of 2021 IN THE MATTER OF: Manish Gupta Resolution Professioal of JC World Hospitality Pvt. Ltd. B-1/504, Tulip Purple, Sector 69, Gurgaon, Haryana - 122101 ...Appellant.

Versus ............ ...Respondent.

For Appellant: Mr. Vaibhav Tyagi, Mr. Pooja M Saigal, Mr. Shantanu Chaturvedi and Mr. Anshul Bajaj, Advocates. For Intervenor: Mr. Krishnendu Datta, Sr. Advocate with Mr. Rahul Gupta, Advocate.

ORDER

(Virtual Mode)

20.07.2021 Heard Learned Counsel for the Appellant. It is stated that

affidavit in terms of directions issued earlier has been filed. It is stated that

the Appellant has received viable Resolution Plans which were received after

the period of "Expression of Interest" was over but Committee of Creditors

condoned the delay to take up the Resolution Plans. It is stated that the

erstwhile promoter however, behind the back of the Appellant has taken a

direction from the Adjudicating Authority seeking stay on the voting of

Resolution Plans and thus this CIRP has got struck.

2. The Learned Counsel submits that the Appellant has given particulars

regarding various steps taken. It is stated that the exclusion sought was for

period from 01st July, 2020 to 09th August, 2020 but the exclusion given was

only from 25th March, 2020 to 30th June, 2020 and hence the Appeal. 2

3. Learned Sr. Counsel-Mr. Krishnendu Datta appears on behalf of the

erstwhile promoters and submits that the Adjudicating Authority has already

looked into the application filed by the erstwhile promoters of entertaining

Resolution Plans after the period of "Expression of Interest" and granted stay

to the voting giving directions that no further steps should be taken.

4. The Learned Counsel for the Appellant is submitting that the promoters

did not give opportunity to the Appellant and the notice of the application was

not served to the Appellant. The Learned Sr. Counsel submits that this

statement of the Appellant is not correct.

5. How the Application was filed and the dispute raised in the Application

with regard to the voting is a matter yet to be decided by the Adjudicating

Authority and we need not inter into the same.

6. However, considering the fact that the Appellant has submitted that

there are viable Resolution Plans which were received and were being

considered by CoC, we remit back the matter to the Adjudicating Authority to

take an overall view of the matter and consider if there are really viable plans

and if it finds interest of justice so requires grant some time so that resolution

could be reached, if possible. The judicial discretion is left to the Adjudicating

Authority to be exercised without being influenced by our observations.

6. With these observations, the present Appeal stands disposed of.

[Justice A.I.S. Cheema] The Officiating Chairperson

[Dr. Alok Srivastava] Member (Technical) Basant B./gc.

Company Appeal (AT) (Ins) No. 466 of 2021

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