Pradeep Kumar vs Rakesh Kumar Jindal
- CitationCompany Appeal (AT) (Insolvency) No. 1959 of 2024
Ratio decidendi
The rule this decision rests on
Where the appellant himself asserts in the appeal that an OTS proposal has been submitted, the question of debt and default does not survive for consideration, so the appeal against admission under Section 7 cannot be sustained on that ground. Once the Committee of Creditors has been constituted in the CIRP, closure of the process on the basis of a settlement must proceed through an application under Section 12A read with Regulation 30A before the Adjudicating Authority, and the settlement proposal must first be placed before the CoC and approved by the requisite voting share of 90%.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Pradeep Kumar ...Appellant Versus Rakesh Kumar Jindal Interim Resolution Professional of Hitech Ferrous and Non Ferrous India Pvt. Ltd. & Anr. ...Respondents
Present: For Appellant : Mr. Sumit Shukla, Mr. Sanjeev Panda, Mr. Pratul Srivastava, Mr. R. N. Rowt, Advocates For Respondents : Mr. Roshan Kumar, Advocate for R-1. Mr. NPS Chawla, Mr. Vibhor Kapoor, Mr. Asher Revi Job, Advocates for R-2. ORDER
(Hybrid Mode)
25.11.2024: Heard learned counsel for the Appellant and learned
counsel appearing for the Respondent Bank. This Appeal has been filed
against order dated 10.10.2024 passed by the Adjudicating Authority by
which Section 7 application filed by Small Industries Development Bank of
India has been admitted.
2. Learned counsel for the Appellant submits that during pendency of the
petition several OTS proposals were submitted. It is submitted that after
impugned order was passed on 10.10.2024, Appellant has further submitted
a revised proposal on 27.10.2024 for settlement.
3. In view of the fact that the Appellant itself is claiming in the appeal that
he has submitted OTS proposal, the issue of debt and default no longer
survives. It is further submitted that CoC has already been constituted on
Cont'd.../ 2
29.10.2024. The CoC having been constituted, for closure of the CIRP which
is admitted, order under Section 12A is required to be passed by the
Adjudicating Authority. The proposal dated 27.10.2024 of the Appellant be
considered by the CoC and in event the CoC with 90% voting share approve
the proposal, it is open for the IRP to file application under Section 12A r/w
Regulation 30A before the Adjudicating for closure of CIRP in accordance with
law. Revised proposal, if any, may be filed by the Appellant within two weeks
from today. With observations as above, Appeal is disposed of.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No.1959 of 2024
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