Taufik Sayeed Hudli & Ors vs Mangesh Vithal Kekre & Anr
- CitationComp. App. (AT) (Ins) No. 1636 of 2024
Ratio decidendi
The rule this decision rests on
Where a corporate debtor is an MSME and a suspended director wishes to submit a plan, the director may, under Regulation 2(B) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, file a compromise or arrangement under Section 230 of the Companies Act within 90 days of the liquidation order, and the Tribunal may grant that time while affirming the liquidation order.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Taufik Sayeed Hudli & Ors. ...Appellants Versus Mangesh Vithal Kekre, ...Respondents Resolution Professional for Hudli and Sons Metallics Private Limited & Anr
Present: For Appellant : Mr. Siddharth Chapalgaonkar and Ms. Sneha Botwe, Advocates. For Respondents : None.
ORDER
(Hybrid Mode)
29.08.2024: I.A. No. 5964 of 2024
This is an application praying for condonation of 14 days' delay in filing
the appeal. Sufficient cause has been shown in paragraph- 3 and 4 of the
application. Delay is condoned.
C.A. (AT) (Ins) No. 1636 of 2024
This appeal has been filed by the Suspended Director of the Corporate
Debtor challenging the order dated 20.06.2024 by which order Adjudicating
Authority on basis of the resolution the Committee of Creditors which is on
02.03.2023 has directed the liquidation of the corporate debtor. Counsel for the
appellant submits that the Corporate debtor is a MSME and the appellant
intended to file a resolution plan in the CIRP and has also prayed for extension
of time but could not file his resolution plan.
2. We are of the view that under Regulation 2(B) of Insolvency &
Bankruptcy Board of India Liquidation Process Regulation, 2016. It is open for
the appellant to file a compromise or arrangement as contemplated under
Section 230 of the Companies Act within 90 days of the order of liquidation.
The Corporate Debtor being MSME and the appellant who claims to be
interested in submitting a plan can very well submit a compromise and
arrangements as contemplated by Regulation 2(B) of the Liquidation
Regulation, 2016.
3. We having passed the order today and affirming the order of liquidation,
we allow 90 days' time to the appellant from today to submit a compromise or
arrangement as per Regulation 2(B), subject to above the order impugned is
upheld, appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical) harleen/NN
Comp. App. (AT) (Ins) No. 1636 of 2024 2 of 2
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