Power Mech Projects Ltd vs Savan Godiawala, R.P./ Liquidator For ...
- CitationCompany Appeal (AT) (Insolvency) No. 620 of 2018
Ratio decidendi
The rule this decision rests on
Where an applicant, having filed an Expression of Interest but chosen not to file a resolution plan because it apprehended ineligibility under Section 29A, and having not challenged the liquidation order that followed, cannot later seek to submit a resolution plan on the ground that the amended Section 29A now renders it eligible; and an application under Section 60(5) seeking such leave, made in the absence of any challenge to the liquidation order, is itself unsustainable.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Power Mech Projects Ltd. ...Appellant
Vs
Savan Godiawala, R.P./ Liquidator for Lanco Infratech Ltd. & Anr. ....Respondents
Present: For Appellant: Mr. Ashim Sood and Mr. Aditya Kumar, Advocate. For Respondents: Ms. Misha, Advocate for Liquidator.
ORDER
05.10.2018: This appeal has been preferred by the Appellant against order dated 27th August, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad whereby the application filed by the Appellant under Section 60(5) of the I&B Code with prayer to enable the Appellant to submit Resolution Plan has been rejected.
2. From the submission made on behalf of the Appellant, learned counsel appearing on behalf of the Liquidator and record, we find that the Appellant filed an Expression of Interest pursuant to Information Memorandum after 23rd November, 2017 when Section 29A came into force. Having come to know that Appellant has become ineligible because of being declared NPA in subsidiary of the Corporate Debtor, it did not file the Resolution Plan and Adjudicating Authority passed order under Section 33(1)(b) for liquidation. Then application under Section 60(5) was filed by the Appellant to enable the Appellant to submit its Resolution Plan.
3. The fact that the Appellant has apprehended that he has become ineligible in terms of explanation given below Section 29A and did not file a resolution plan, after order of liquidation, it cannot be made eligible to file resolution plan -2-
on the ground that in terms of the amended Section 29A Appellant is now eligible to file Resolution Plan. This apart, in absence of challenge of order of liquidation, the application under Section 60(5) for submission of the Resolution Plan was also uncalled for. We find no merit in this appeal. It is accordingly dismissed.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial) am/gc
Company Appeal (AT) (Insolvency) No. 620 of 2018
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