Ronak Kundanlal Bhagat & Ors vs Parthiv Parikh Rp Of Sanghvi Forging And ...

In the matter of: Ronak Kundanlal Bhagat & Ors. ....Appellants Vs. Parthiv Parikh (RP of Sanghvi Forging and Engineering Ltd.) & Ors. ....Respondents Present For Appellants: Mr. Pulkit Kapoor, Mr. Janak Bathiya, Mrs. Shraddha Swarup & Mr. Anirudh Suresh, Advocates.

For Respondents: Mr. Dheeraj Garg (PCS) & Jaimin R Dave, for R-1.

Mr. Diwakar Maheshwari, Mr. Vishnu Shriram, Mr. Tarak Damani, Mr. Kingshuk Banerjee & Mr. Aditya V Singh, for R-3/ SRA.

Mr. Bishwajit Dubey, Srideepa Bhattacharyya & Ms. Neha Shivhare, for R-4 & 5.

ORDER

(Virtual Mode)

21.05.2021: Heard Learned Counsel for the Appellant representing

shareholder of the Corporate Debtor submits that the Promoters of the

Corporate Debtor are ready to pay the equal amount which is accepted by the

Successful Resolution Applicant. The Appellants have a good case in Appeal.

Therefore, the CIRP may be stayed, till next date of hearing.

Learned Counsel appearing on behalf of the Resolution Professional/R-1

submits that the Appellants being a Shareholders have not raised any objection

before the Adjudicating Authority, therefore, they have no locus-standy to file

this Appeal. It is also submitted that by the Impugned Order Learned 2

Adjudicating Authority approved the Resolution Plan, therefore, in view of

Section 61(3)(ii) the Appeal can only be filed on the grounds of material

irregularity in exercise of powers by the Resolution Professional during the

Corporate Insolvency Resolution Period. However, Learned Counsel for the

Appellants have not point out any material irregularity in exercising the powers

by the Resolution Professional. Therefore, the Appeal is not maintainable and

liable to be dismissed at threshold.

It is further submitted that this Appellate Tribunal vide Order

02.12.2019 vacated the stay over the CIRP considering the one-time settlement

proposal by Suspended management till 31.12.2019. However, they failed to

act upon the one-time settlement proposal in time frame therefore, the IRP

made fresh paper publication for calling expression of interest on 13.01.2020.

In 13th Meeting COC has approved the Resolution Plan by 100% voting share in

favour of the Resolution Plan and the Learned Adjudicating Authority by the

Impugned Order approved the Resolution Plan. In such circumstances, it is

requested that the Appeal be dismissed at motion stage.

We have considered the submissions we are of the view that Learned

Counsel for the Appellants has failed to point out that there is any material

irregularity in exercise of powers by the Resolution Professional during the

Corporate Insolvency Resolution Period. The Promoters are failed to comply

their one-time settlement proposal till 31st December, 2019.

Company Appeal (AT) (Ins.) No. 364 of 2021 3

We find no ground to interfere in the Impugned Order. The Appeal is dismissed

summarily. No Costs.

[Justice Jarat Kumar Jain] Member (Judicial)

[Dr. Ashok Kumar Mishra] Member (Technical) Sim/Md

Company Appeal (AT) (Ins.) No. 364 of 2021