S.A Pharmachem Pvt. Ltd vs Alok Industries Ltd. & Ors

S.A. Pharmachem Pvt. Ltd. ...Appellant

Vs.

Alok Industries Ltd. & Ors. ...Respondents

Company Appeal (AT) (Insolvency) No. 67 of 2020

IN THE MATTER OF:

M/s. Prime Marketing ...Appellant

Vs.

Alok Industries Ltd. & Ors. ...Respondents

Company Appeal (AT) (Insolvency) No. 69 of 2020

IN THE MATTER OF:

Sadhana Trading Corporation ...Appellant

Vs.

Alok Industries Ltd. & Ors. ...Respondents

Company Appeal (AT) (Insolvency) No. 70 of 2020

IN THE MATTER OF:

M/s. Eighteen Acid & Chemicals Enterprise ...Appellant

Vs.

Alok Industries Ltd. & Ors. ...Respondents Contd/-.......

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Company Appeal (AT) (Insolvency) No. 71 of 2020

IN THE MATTER OF:

C.M.S. Impex (India) Pvt. Ltd. ...Appellant

Vs.

Alok Industries Ltd. & Ors. ...Respondents

Company Appeal (AT) (Insolvency) No. 73 of 2020

IN THE MATTER OF:

Apna Organics Pvt. Ltd. ...Appellant

Vs.

Alok Industries Ltd. & Ors. ...Respondents

Company Appeal (AT) (Insolvency) No. 74 of 2020

IN THE MATTER OF:

Associate Chemicals & Ors. ...Appellants

Vs.

Alok Industries Ltd. & Ors. ...Respondents

Present: For Appellant: - Mr. Akshay Sapre and Mr. Ankit Kumar Lal, Advocates.

For Respondents:- Mr. Ramji Srinivasan, Senior Advocate with Mr. Raghav Shankar and Ms. Sylona Mohapatra, Advocates for R-3. Ms. Sneha Janaki Raman, Mr. Prateek Kumar and Mr. Nihanjan S. Rao, Advocates for CoC. Mr. Arun Kathpalia, Senior Advocate with Ms. Misha, Mr. Vaijayant Paliwal and Mr. Nikhil Mathur, Advocates for RP.

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O R D E R

22.01.2020─ The Appellant(s)- ('Operational Creditors') have

preferred these appeals against the order dated 18th November, 2019

passed by the Adjudicating Authority (National Company Law Tribunal),

Ahmedabad Bench, Ahmedabad, rejecting their Interlocutory

Applications for payment of 'Corporate Insolvency Resolution Process

Costs'.

2. In the 'Corporate Insolvency Resolution Process' of 'M/s. Alok

Industries Limited'- ('Corporate Debtor'), the 'Resolution Plan' was

approved by the Adjudicating Authority on 8th March, 2019. During the

implementation of the 'Resolution Plan', the Interlocutory Applications

were filed by the Appellant(s).

3. Learned counsel for the Appellant submits that the 'Operational

Creditors' supplied goods during the 'Corporate Insolvency Resolution

Process' to keep the Company as a going concern. For the first time, the

'Resolution Professional' by e-mail dated 21st November, 2018 directed

the settlement of payments made during the month of October-

November, 2018 against the current invoices. This has erroneously been

noted as e-mail dated 25th October, 2018 in the impugned order.

4. Subsequently, by order 8th March, 2019, the 'Resolution Plan' was

approved by the Adjudicating Authority. It was at this stage for the first -4-

time that the Appellant(s) came to know a sum had been set aside for

payment of 'Corporate Insolvency Resolution Process' and thereafter on

the basis of verbal information, it had an apprehension that the amounts

due against the goods supplied during the 'Corporate Insolvency

Resolution Process' period, 'Interim Resolution Professional' cost would

not be paid to him and in fact the payments made against 'Pre-Corporate

Insolvency Resolution Process' invoices would be se-off against the same.

5. Mr. Ramji Srinivasan, learned Senior Counsel appearing on behalf

of 3rd Respondent-'Reliance Industries Limited' ('Successful Resolution

Applicant') and Mr. Arun Kathpalia, learned Senior Counsel appearing on

behalf of the 'Resolution Professional' oppose the Appellant(s). It is

submitted that the 'Resolution Plan' has taken care of 'Corporate

Insolvency Resolution Process Costs' and fees of the 'Resolution

Professional'/ 'Interim Resolution Professional'. The Monitoring

Committee is monitoring the matter and whatever the amount due to one

or other 'Operational Creditors' for the period prior to the date of initiation

of the 'Corporate Insolvency Resolution Process' and during the

'Corporate Insolvency Resolution Process' has been taken care of and

noticed by the Adjudicating Authority.

6. The order dated 8th March, 2019 by which the 'Resolution Plan' was

approved by the Adjudicating Authority is not under challenge in these

appeals. In absence of any challenge, the said plan has reached finality. -5-

After the plan has reached finality, it is binding on all the stakeholders

including the 'Operational Creditors', 'Financial Creditors' and others.

How the distribution is to be made on the basis of the approved plan is

for the Monitoring Committee to see. No individual decision can be given

either by the Adjudicating Authority or by this Appellate Tribunal on the

basis of individual claim of one or other 'Operational Creditors', 'Financial

Creditors' and others after such approval, once the matter is brought to

the notice of the Adjudicating Authority and this Appellate Tribunal by

the 'Resolution Professional' on behalf of the Monitoring Committee that

the 'Corporate Insolvency Resolution Process Costs' have been paid.

7. The 'Resolution Plan' once approved and reached finality, all the

dues stand cleared in terms of the plan and now no issue can be raised

before any Court of Law or Tribunal.

All the appeals are dismissed. No costs.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member(Judicial)

(Justice Anant Bijay Singh) Member(Judicial)

Ar/RR