Rajit Mehra vs Punjab National Bank & Anr

Rajit Mehra ...Appellant

Vs

Punjab National Bank & Anr. ....Respondents

Present: For Appellant: Mr. Anjani Kumar Mishra and Ms. Hardeep Kaur, Advocates. For Respondents:

ORDER

09.04.2019: This appeal has been preferred by 'Rajit Mehra', Ex-Director

of 'M/s Rishi Ganga Power Corporation Ltd.' (Corporate Debtor) against order

dated 13th November, 2018 whereby the Adjudicating Authority (National

Company Law Tribunal), Chandigarh Bench, Chandigarh approved the

resolution plan and rejected the objection raised by the Appellant - Ex-Director.

2. Learned counsel appearing on behalf of the Appellant submits that the

Board of Directors were not invited during the meeting of Committee of Creditors

when the resolution plan was approved. However, Appellant has not made it

clear as to why he has not moved against the order of approval of the resolution

plan by the Committee of Creditors which held since March, 2018. On 30th June,

2018, the Committee of Creditors approved the resolution plan but Board of

Director never choose to appear, though earlier in one of the meeting, the

representative of Board of Directors attended the meeting of the Committee of -2-

Creditors and had not raise any objection. Admittedly, the Board of Directors

have no voting right though they have the right to point out in defect, if any, in

approving or rejecting one or other plan.

3. In the present case, we gave opportunity to the learned counsel for the

Appellant to point out illegality, if any, committed by the Committee of Creditors

while approving the Resolution Plan. It is informed that there were three

resolution plans and if opportunity would have been provided, Promoters could

have filed a resolution plan. However, such submission cannot be accepted at

this belated stage. Further, it is not clear whether the Promoters are eligible in

terms of Section 29A, they having not filed any resolution plan pursuant to the

Information Memorandum. It is not the case of the Appellant that the Successful

Resolution Applicant is ineligible nor it is pleaded that the approved resolution

discriminates amongst the creditors. In fact, no financial creditor(s) or

operational creditor(s) has moved against the approved resolution plan. For the

reason aforesaid, no relief can be granted. In absence of any merit. The appeal

is dismissed. No costs.

[Justice S. J. Mukhopadhaya] Chairperson

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

Company Appeal (AT) (Insolvency) No. 334 of 2019