Tata Hitachi Construction Machinery ... vs Ms. Megha Agarwal

M/s. Tata Hitachi Construction Machinery Company ....Appellant Pvt. Ltd. Vs. Ms. Megha Agarwal, Resolution Professional of ...Respondents Universal Industrial Equipment and Technical Services Pvt. Ltd. & Anr.

For Appellant: Mohd. Azeem Khan, Advocate. For Respondents:

ORDER

(Through Virtual Mode)

11.03.2022: Heard Learned Counsel for the Appellant.

2. This Appeal has been filed against the order dated 07.10.2021 passed

by the Adjudicating Authority (National Company Law Tribunal), Court-V,

Mumbai Bench, by which order the Resolution Plan of 'M/s. Saral Industries'

(Resolution Applicant) has been approved. The CIRP proceeding was initiated

by order dated 18.12.2019 on the basis of Application filed under Section 9 of

the Insolvency and Bankruptcy Code, 2016 ('I&B Code" for short) by the

Appellant. The Appellant's case is that the claim value of the Appellant was

more than 10% and he was permitted to participate in the meeting of the

Committee of Creditors (CoC).

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3. Learned Counsel for the Appellant submits that the Resolution Plan has

allocated only an amount of Rs. 17.25 lakhs to the Operational Creditors

which is only 0.46%. Learned Counsel further submits that the treatment of

the Operational Creditors is inequitable and no benefit can be received by

approval of such plan.

4. We have considered the submissions of the Learned Counsel for the

Appellant and perused the record.

5. Present is not a case where any other Operational Creditor has been

paid any higher amount as has been allocated to the Respondent. The CoC

has already approved the Resolution Plan in its 13th meeting on 06.03.2021.

The Hon'ble Supreme Court in "Committee of Creditors of Essar Steel India

Limited vs. Satish Kumar Gupta and Ors.-(2020) 8 SCC 531" has already

laid down the parameters of judicial review of the commercial wisdom of the

CoC. It has been held that equal treatment is to be accorded to each creditor

depending upon the class to it belong. The CoC having already approved the

Resolution Plan, we on the submission made by the Appellant that he has

received insignificant amount in the Resolution Plan, are not persuaded to

interfere with the order of the Adjudicating Authority. The Hon'ble Supreme

Court in "K. Sashidhar v. Indian Overseas Bank- (2019) 12 SCC 150" has

categorically laid down that legislature has not endowed the Adjudicating

Authority with the jurisdiction or authority to analyse or evaluate the

commercial decision of the CoC.

Comp. App. (AT) (Insolvency) No. 244 of 2022 3

6. We do not find any error in the impugned judgment. There is no merit

in the Appeal. The Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Dr. Alok Srivastava] Member (Technical) Anjali/nn

Comp. App. (AT) (Insolvency) No. 244 of 2022