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Mis Paisalo Digital Limited vs M/S Techno Forge Limited And Ors

National Company Law Appellate Tribunal13 July 2023Ashok Bhushan

Ratio decidendi

The rule this decision rests on

Where the Committee of Creditors has resolved not to pursue a preferential transaction application because the amount sought under it has already been deposited by the ex-management, the Adjudicating Authority may treat the application as having become infructuous, and the Appellate Tribunal will not interfere with that closure where the facts show the claimed amount has been paid.

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) (Ins) No. 805 of 2023 IN THE MATTER OF: Paisalo Digital Ltd. Formerly known as S.E. Investments Ltd. ...Appellant Vs. Techno Forge Ltd. & Ors. ...Respondents

Present: For Appellant: Mr. P.Nagesh, Sr. Advocate & Mr. Harshal Kumar, For Respondent: Mr. Atul Sharma, Ms. Aditi Sharma, Mr. Vikram Choudhary, Mr. Shreyans Shah, RP

ORDER

13.07.2023: Heard Learned Counsel for the Appellant.

This Appeal has been filed against the order dated 03.05.2023 by which

order, the Adjudicating Authority has held that the application filed u/s 43 has

become infructuous. It appears that in the application IA No. 947/2020 filed u/s

43 the amount involved was Rs. 2,02,55,665/-.

2. The Ex-management made an offer to the 'Committee of Creditors' (CoC)

to deposit the said amount which was accepted by the CoC and that Resolution

was passed not to proceed with Section 43 application.

3. Adjudicating Authority after hearing the Learned Counsel for the

'Resolution Professional' (RP) and other Counsels appearing, took the view that

nothing survives after the amount was offered.

4. Shri Nagesh, Learned Sr. Counsel for the Appellant challenging the order

contends that the application for preferential transaction ought to have been

finally decided.

5. It is submitted that mere payment of amount, the application could not

have been held to become infructuous.

6. We have considered the submission of the Learned Counsel for the parties

and peruse the record.

Company Appeal (AT) (Ins) No. 805 of 2023 1

7. In the facts of the present case, the CoC in its decision passed a Resolution

not to proceed with the preferential transaction application since the amount

which was involved in the preferential application has already been deposited.

8. It is further submitted by the Learned Counsel for the RP that Plan

approval application is pending for last two years.

9. In the facts of the present case, when the application for preferential

transaction has been closed by the Adjudicating Authority, we see no reason to

entertain this appeal. The Appeal is disposed of.

While considering the Plan approval application, parties are at liberty to

raise all the objections.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

ss/nn

Company Appeal (AT) (Ins) No. 805 of 2023 2

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