S. Sriharan vs Malabar Hotels Pvt. Ltd. & Anr

S. Sriharan ...Appellant

Vs.

Malabar Hotels Pvt. Ltd. & Anr. ...Respondents

Present: For Appellant:- Mr. S. Aravindan, Advocate.

For Respondents:- Mr. Sumant Batra, Mr. Mahesh Agarwal, Ms. Aastha Mehta and Ms. Srishti Kapoor, Advocates. Mr. Nirav Shah, Advocate for Successful Resolution Applicant.

ORDER

28.08.2018- This appeal has been preferred by the Appellant, Promoter

and Shareholder of 'Malabar Hotels Pvt. Ltd.'- ('Corporate Debtor')

against order dated 3rd August, 2018 passed by the Adjudicating

Authority (National Company Law Tribunal), Division Bench, Chennai,

whereby and whereunder, the application preferred by the Appellant

under sub-section (5) of Section 60 of the Insolvency and Bankruptcy

Code, 2016 (hereinafter referred to as "I&B Code") has been rejected.

2. Learned counsel appearing on behalf of the Appellant submitted

that the Appellant sought for various information from the 'Resolution

Professional' with regard to 'Resolution Plan' which has been approved.

Contd/-...............

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Such details were required to find out as to what amount has been

allocated to the Appellant and if it is not in accordance with law then to

challenge the 'Resolution Plan'.

3. Learned counsel appearing on behalf of the 'Resolution

Professional' submitted that the Appellant being the promoter was

present all the time in the meeting of the 'Committee of Creditors' and

'Resolution Plan' was discussed in those meeting, therefore, he had all

the knowledge. The 'Resolution Plan' was approved by the 'Committee of

Creditors' on 20th June, 2018 but it was not challenged by the Appellant.

Now, when the matter is pending before the Adjudicating Authority for

approval under Section 31, the Appellant intends to challenge the same.

4. Learned counsel appearing on behalf of the 'Resolution

Professional' further submitted that the 'Resolution Plan' has taken care

of all the stakeholders, including the Shareholders and the equity of the

shareholders has been protected by issuing preferential share(s) in

favour of the shareholders redeemable within six years. In the event, the

'Resolution Applicant' fails to pay the redeemable amount after six

years, then it is stipulated that additional equity shares of 2.75% of the

current amount will be issued in favour of the shareholders.

Company Appeal (AT) (Insolvency) No. 490 of 2018 -3-

5. Having heard learned counsel for the parties and taking into

consideration the fact that the 'Resolution Plan' has taken care of the

shareholders, we are not inclined to grant any relief in favour of the

Appellant.

6. The appeal is accordingly dismissed. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member(Judicial) Ar/uk

Company Appeal (AT) (Insolvency) No. 490 of 2018