Praveen Kumar Nanda Kumar vs Vsl Securities Pvt. Ltd. & Ors

Praveen Kumar Nanda Kumar ...Appellant

Versus

VSL Securities Pvt. Ltd. & Ors. ...Respondents

Present:

For Appellant: Ms. Shashi Panwar, Advocates. For Respondents: Mr. Haribabu Thota, Resolution Professional (R-3). Mr. K. Dushyantha Kumar, Liquidator (R-4)

ORDER

(Through Virtual Mode)

09.06.2020 Though we are not convinced that the cause assigned is a

sufficient cause warranting restoration of dismissed appeal to file, in view of the

circumstances of the case viz. the appeal being preferred against the order of

liquidation passed by the Adjudicating Authority we deem it appropriate to allow

restoration of appeal to file.

The Appellant claiming to be a Promoter has through the medium of

instant appeal assailed order of the Adjudicating Authority (National Company

Law Tribunal), Bengaluru Bench dated 8th January, 2020 by virtue whereof the

Corporate Debtor - 'M/s Unishire Housing LLP' has been sent into liquidation.

It is submitted by learned counsel for the Appellant that 'M/s Altico Capital India

Ltd.' also had sought initiation of Corporate Insolvency Resolution Process by

preferring of separate application under Section 7 of the I&B Code before the -2-

Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench,

which was dismissed on the score that Corporate Insolvency Resolution Process

had already been initiated by 'M/s VSL Securities Pvt. Ltd.'. It is further

submitted that 'M/s Altico Capital India Ltd.' did not fall within the definition of

'Financial Creditor' and objection in this regard had been raised before the

Interim Resolution Professional when claim was filed by 'M/s Altico Capital India

Ltd.' before the Interim Resolution Professional. Therefore, it is submitted that

the Corporate Insolvency Resolution Process got vitiated and could not culminate

in order of liquidation passed by the Adjudicating Authority which has been

assailed in this appeal.

After hearing learned counsel for the Appellant and Shri Haribabu Thota,

Resolution Professional in person (Respondent No. 3) and Shri K. Dushyantha

Kumar, Liquidator in person (Respondent No. 4), we find that the Corporate

Insolvency Resolution Process initiated at the instance of the Financial Creditor

- 'M/s VSL Securities Pvt. Ltd.', in terms of order of admission dated 31st July,

2019 passed by the Adjudicating Authority in CP No. 172 of 2019, culminated

in passing of the impugned order dated 8th January, 2020, in terms whereof the

Corporate Debtor has been sent into liquidation. It further appears that no

Resolution Plan was forthcoming within the prescribed timelines as the

liquidation cost was not ascertainable and available liquid assets were only of

the value of Rs.29,60,000/- whereas total claims received against the

Company Appeal (AT) (Insolvency) No. 308 of 2020 -3-

Corporate Debtor were for Rs.2,35,72,27,259/-. The Committee of Creditors

finding no other option available recommended initiation of liquidation

proceedings by a majority of 70.97%. It is by now settled that, the commercial

wisdom of the Committee of Creditors qua the business decision as regard the

feasibility and viability of the Resolution Plan cannot be questioned before the

Adjudicating Authority or even before this Appellate Tribunal. Likewise, the

decision of the Committee of Creditors recommending liquidation of the

Corporate Debtor after proper evaluation of the assets and liabilities of Corporate

Debtor with no Resolution Plan forthcoming would be a business decision falling

within the domain of commercial wisdom of the Committee of Creditors which is

not amenable to judicial review. Admittedly, the Corporate Insolvency

Resolution Process period has expired and the order of admission on application

under Section 7 culminating in passing of impugned order of liquidation has not

been assailed by the Appellant. Since, the Corporate Insolvency Resolution

Process is over and all actions taken in such process go unassailed, we find no

merit in the instant appeal. The appeal is accordingly dismissed.

[Justice Bansi Lal Bhat] Acting Chairperson

[Justice Jarat Kumar Jain] Member (Judicial)

[Ms. Shreesha Merla] Member (Technical) am/gc

Company Appeal (AT) (Insolvency) No. 308 of 2020