Sudhir Kumar Awasthi vs Avinash Em Projects Private Limited

IN THE MATTER OF: Sh. Sudhir Kumar Awasthi ...Appellant

Versus

Avinash EM Projects Pvt. Ltd. & Ors. (Through its Liquidator) ...Respondents

Present: For Appellant : Present but appearance not marked. For Respondents : Ms. Udita Singh, Advocate for R-1. Ms. Jagriti Ahuja, Mr. Vijay Dutt, Advocates for R-2.

ORDER

(Hybrid Mode)

03.07.2024: Heard learned counsel for the Appellant as well as learned

counsel for the Respondent. This Appeal has been filed against the order

dated 18.03.2024 by which order the Adjudicating Authority has allowed the

application I.A. No. 6451 of 2023 filed by the Resolution Professional seeking

liquidation. The Adjudicating Authority by the impugned order has allowed

the application. Aggrieved by the said order, this appeal has been filed by the

Appellant who is Suspended Director of the Corporate Debtor.

2. Learned counsel for the Appellant submits that there are no reasons

given in the third CoC meeting with regard to decision to liquidate. He

submits that the Corporate Debtor is also not been sold as going concern. He

submits that there are chances of revival.

Cont'd.../ 2

3. Learned counsel for the Respondent submits that the CoC has

discussed in the third CoC meeting as well as in fourth CoC meeting and

resolution was passed in fourth CoC, Item 11 was passed for liquidation. It

is submitted that there are no assets and Corporate Debtor has already been

blacklisted.

4. We have considered the submissions of learned counsel for the parties

and perused the record.

5. In so far as submissions of learned counsel of the Appellant that there

are no reasons given in the minutes of the meeting of CoC for taking decision

to liquidate the Corporate Debtor, we have looked into the third and fourth

CoC meeting, the CoC has elaborately discussed the future course of action

and consciously took decision that no Form G shall be published and after

decision that no Form G be published, decision was taken to liquidate. The

reasons are contained in the discussions in the CoC meeting which reflect

that CoC has deliberated on all aspects of the matter and taken decision to

liquidate the Corporate Debtor. Under the statutory scheme, the CoC is

empowered to take decision to liquidate although judicial review is permitted

to said decision but there have to be adequate ground to interfere with said

decision by the Court in exercise of judicial review. In facts of the present

case, the Adjudicating Authority rightly allowed the application for

liquidation.

6. In so far as submission of the learned counsel for the Appellant that

Corporate Debtor should be sold as going concern, it is always open for the

Company Appeal (AT) (Insolvency) No.908 of 2024 3

Appellant to file appropriate application before the Adjudicating Authority

seeking such relief as advised.

7. With these observations, we dispose of the Appeal.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No.908 of 2024