Seroco Lighting Industries Pvt Ltd vs Ravi Kapoor Rp For Arya Filaments Pvt Ltd ...

Seroco Lighting Industries Pvt. Ltd. ....Appellant Vs. Ravi Kapoor, RP for Arya Filaments Pvt. Ltd. & Ors. ....Respondents

Present:

Appellant: Mr. Tirth Nayak, Mr. Abhijeet Swaroop, Advocates.

ORDER

(Through Virtual Mode) 10.12.2020: This appeal is directed against dismissal of I.A No. 96 of 2020

at the hands of the Adjudicating Authority (National Company Law Tribunal),

Indore Bench at Ahmedabad by impugned order dated 23rd October, 2020 by

virtue whereof the Appellant's prayer for revision of the approved Resolution Plan

has been turned down. After noticing that the Corporate Debtor is an MSME and

the Appellant being aware of the financial condition of the Corporate Debtor, it

submitted the sole Resolution Plan that came to be approved by the Adjudicating

Authority. The Adjudicating Authority observed that the contention of the

Appellant that it had no knowledge of the financial condition of the Corporate

Debtor cannot be entertained.

2. After hearing learned counsel for the Appellant and having regard to the

Judgments rendered by this Appellate Tribunal holding that the Successful

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

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Resolution Applicant cannot be permitted to withdraw the approved Resolution

Plan coupled with the fact that the Appellant in the instant case being the sole

Resolution Applicant in the Corporate Insolvency Resolution Process (CIRP) of

the Corporate Debtor which has been classified as an MSME and admittedly

having knowledge of the financial health of the Corporate Debtor as a promoter

or a connected person cannot be permitted to seek revision of the approved

Resolution Plan on that ground which would not be a material irregularity within

the ambit of Section 61(3) of the Insolvency and Bankruptcy Code, 2016. We are

of the considered opinion that there is no merit in this appeal and the same is

liable to be dismissed.

3. We accordingly dismiss the appeal. However, taking into consideration the

fact that the Corporate Debtor is an MSME and there is economic slowdown

globally in the wake of outbreak of COVID-19 Pandemic, we deem it appropriate

to waive off the costs imposed by the Adjudicating Authority. The impugned order

to the extent of imposition of costs is accordingly set aside.

A copy of this order be communicated to the Adjudicating Authority.

[Justice Bansi Lal Bhat] Acting Chairperson

[Dr. Ashok Kumar Mishra] Member (Technical)

[Shreesha Merla] Member (Technical)

AR/g Company Appeal (AT) (Insolvency) No. 1054 of 2020