Next Orbit Ventures vs Print House (India) Pvt. Ltd

IN THE MATTER OF: M/s. Next Orbit Ventures ...Appellant Vs. Print House (India) Pvt. Ltd. & Anr. ...Respondents

Present: For Appellant: - Mr. Ramji Srinivasan, Senior Advocate with Mr. Ajay K. Jain, Mr. Atanu Mukherjee, Ms. Sylona Mohapatra, Mr. Nikhil Ramdev, Advocates. For Respondents: - Mr. Dinkar Singh, Advocate for R-1.

SUDHANSU JYOTI MUKHOPADHAYA, J.

In the 'Corporate Insolvency Resolution Process' against 'Print

House (India) Private Limited'- ('Corporate Debtor'), one Miscellaneous

Application was filed by 'Sify Technologies Limited' for additional

information from the 'Resolution Professional' to enable the said

Applicant to submit a 'Resolution Plan' and the only prayer was made to

condone the delay of the submission of the 'Resolution Plan' as the

Applicant is not in a position to reasonably evaluate the liabilities and

claims that may devolve upon the said Applicant- 'Sify Technologies

Limited'.

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2. The Adjudicating Authority (National Company Law Tribunal),

Mumbai Bench, Mumbai on hearing the said Applicant- 'Sify

Technologies Limited' and the 'Resolution Professional' and the party who

submitted the 'Resolution Plan' within the due date including their

objections, directed the 'Committee of Creditors' to convene its meeting

and to consider the 'Resolution Plan' submitted by the said Applicant-

'Sify Technologies Limited' on 5th August, 2019 along with others by

impugned order dated 7th August, 2019.

3. Another Miscellaneous Application No. 2682 of 2019 filed by the

Applicant viz 'M/s. Honest Orbit Ventures', another 'Resolution

Applicant' for directing the 'Committee of Creditors' to consider the

'Resolution Plan' submitted by the said 'Resolution Applicant'- 'M/s.

Honest Orbit Ventures'. It was argued that the 'Resolution Plan' was

submitted within time prescribed as per the advertisement of Expression

of Interest. In this background, the Adjudicating Authority allowed the

prayer and directed the 'Resolution Professional' to put up the 'Resolution

Plan' before the 'Committee of Creditors' for due consideration and the

said prayer was declared to have become redundant.

4. The outcome of the above decision was to direct the 'Committee of

Creditors' to convene a Meeting on 12th August, 2019, at a time and place

as may be decided by the 'Committee of Creditors'. It was ordered to open

the 'Resolution Plan' and put up the same before the 'Committee of

Company Appeal (AT) (Insolvency) No. 861 of 2019 3

Creditors' for due consideration. Miscellaneous Application No.

2682/2019 was disposed of accordingly.

5. A third Miscellaneous Application No. 2149 of 2019 filed by the

Government Employee Provident Fund Employees Organisation was

entertained and allowed by the Adjudicating Authority by the same

impugned order dated 7th August, 2019 admitting the claim of the

Government Department.

6. The aforesaid combined impugned order dated 7th August, 2019 is

under challenge in this appeal.

7. The Appellant who is one of the 'Resolution Applicants' submitted

the plan within time. It has objection with regard to the plan as may be

submitted by the aforesaid Applicants particularly 'Sify Technologies

Limited'.

8. Learned counsel for the Appellant submitted that the last date for

submission of the 'Resolution Plan' was 10th July, 2019 and 270 days

was to expire on 14th July, 2019.

9. It was further submitted that the 'Resolution Applicant' based upon

information/ data shared by the 'Resolution Professional' submitted its

'Resolution Plan' along with earnest deposit of Rs. 1.5 crores on 10th July,

2019.

10. Further, according to the counsel for the Appellant, the case of

'M/s. Sify Technologies Limited' is that no realistic 'Resolution Plan' can

Company Appeal (AT) (Insolvency) No. 861 of 2019 4

be worked out in absence of information as mentioned in para-8 of Misc.

Application No. 2438 of 2019 and, therefore, the 'Resolution Plan'

submitted by 'Sify Technologies Limited', on its own, saying is unrealistic

and therefore, should not be considered.

11. Section 12 of the 'I&B Code' has been amended recently and come

into effect w.e.f. 16th August, 2019 which reads as follows:

"12. Time-limit for completion of insolvency

resolution process.─ (1) Subject to sub-section (2), the

corporate insolvency resolution process shall be

completed within a period of one hundred and eighty

days from the date of admission of the application to

initiate such process.

(2) The resolution professional shall file an application

to the Adjudicating Authority to extend the period of the

corporate insolvency resolution process beyond one

hundred and eighty days, if instructed to do so by a

resolution passed at a meeting of the committee of

creditors by a vote of seventy-five per cent. of the voting

shares.

(3) On receipt of an application under sub-section (2), if

the Adjudicating Authority is satisfied that the subject

matter of the case is such that corporate insolvency

Company Appeal (AT) (Insolvency) No. 861 of 2019 5

resolution process cannot be completed within one

hundred and eighty days, it may by order extend the

duration of such process beyond one hundred and

eighty days by such further period as it thinks fit, but

not exceeding ninety days:

Provided that any extension of the period of corporate

insolvency resolution process under this section shall

not be granted more than once.

Provided further that the corporate insolvency

resolution process shall mandatorily be completed

within a period of three hundred and thirty days from

the insolvency commencement date, including any

extension of the period of corporate insolvency

resolution process granted under this section and the

time taken in legal proceedings in relation to such

resolution process of the corporate debtor:

Provided also that where the insolvency resolution

process of a corporate debtor is pending and has not

been completed within the period referred to in the

second proviso, such resolution process shall be

completed within a period of ninety days from the date

of commencement of the Insolvency and Bankruptcy

Code (Amendment) Act, 2019.".

Company Appeal (AT) (Insolvency) No. 861 of 2019 6

12. As per third proviso to Section 12, now 90 days more time has been

given to complete the 'Resolution Process' from the date the aforesaid

amendment has come into force i.e. from 16th August, 2019.

13. In view of the aforesaid development, as further time has been

allowed under the 'I&B Code', we are not inclined to interfere with the

impugned order dated 7th August, 2019 merely on the ground that the

Appellant will have to face the consequence. If one or other 'Resolution

Plan' is found to be more viable and feasible and will maximise the assets

of the 'Corporate Debtor', balancing all the stakeholders by maximising

the assets of the 'Financial Creditor'/ 'Operational Creditor' and others,

no right accrues to any individual Applicant(s) to stall such process.

We find no merit in this appeal. It is accordingly dismissed. No

costs.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice A.I.S. Cheema ] Member (Judicial)

[ Kanthi Narahari ] Member (Technical)

NEW DELHI 13th November, 2019

/AR/

Company Appeal (AT) (Insolvency) No. 861 of 2019