V Karthikayan vs M S Viswanathan

NATIONAL COMPANY LAW APPELLATE TRIBUNAL AT CHENNAI (APPELLATE JURISDICTION) Company Appeal (AT)(CH)(Ins) No.245/2022 (Contempt Case (AT) No.5/2022) & IA Nos.519, 636 and 838/2022 (Under Section 61 of the Insolvency and Bankruptcy Code, 2016) (Arising out of the Impugned Order dated 06.06.2022 in IA/196(CHE)/2022 in IBA/578/2019 passed by the 'Adjudicating Authority' (National Company Law Tribunal, Special Bench - II, Chennai)

In the matter of: V Karthikayan ... Appellant V M.S. Viswanathan and Ors. ... Respondents

Present : For Appellant : Mr. Ravi Rajagopalan, Advocate for Resolution Applicant

For Respondents : Mr. M.S. Viswanathan, Advocate for R1 Mr. M.L. Ganesh, Advocate for R2 / SBI Mr. T. Ravichandran, Advocate for R3/ Liquidator

ORDER

(Virtual Mode) 13.10.2022 : Heard Mr. Ravi Rajagopalan, the Learned Counsel appearing

for the 'Appellant' / 'Resolution Applicant', Mr. M.L. Ganesh, the Learned

Counsel appearing for the 2nd Respondent / State Bank of India (Sole Member

of the Committee of Creditor) and Mr. T. Ravichandran, the Learned Counsel

for the 3rd Respondent / Liquidator.

Company Appeal (AT)(CH)(Ins) No.245/2022 Page 1 of 6

2. According to the Learned Counsel for the 'Appellant' / 'Suspended

Director of M/s. Leo Primecomp Pvt. Ltd.' / 'Resolution Applicant', the

'Adjudicating Authority' (National Company Law Tribunal, Special Bench -

II, Chennai) in IA/196(CHE)/2022 in IBA/578/2019 had passed an 'Order' of

'Liquidation' on 06.06.2022 by 'Appointing' the 'Liquidator' in respect of the

'Corporate Debtor', to carry out the 'Liquidation Process', subject to the

'Directions', issued therein.

3. On being aggrieved against the 'Order' of 'Liquidation' dated

06.06.2022 passed by the 'Adjudicating Authority' (National Company Law

Tribunal, Special Bench - II, Chennai) in IA/196(CHE)/2022 in

IBA/578/2019, the 'Appellant' / 'Suspended Director of M/s. Leo Primecomp

Pvt. Ltd.', Chennai 600 015 has preferred the instant Comp. App. No.

(AT)(CH)(Ins) No.245/2022, assailing the 'correctness' of the 'Impugned

Order' of 'Liquidation' passed.

4. On behalf of the 'Appellant' / 'Suspended Director of M/s. Leo

Primecomp Pvt. Ltd.', in the present Comp. App. (AT)(CH)(Ins)

No.245/2022, a 'Memo' is filed (vide Diary No.2688) dated 27.09.2022,

before this 'Tribunal', showing that a 'total Resolution Plan' for a sum of

Rs.72 Crore, was remitted to the 2nd Respondent / State Bank of India (Sole

Member of the Committee of Creditor), as per the 'Terms of Settlement' with Company Appeal (AT)(CH)(Ins) No.245/2022 Page 2 of 6 an 'Upfront Payment' of Rs.17.51 Crore, being remitted on 30.08.2022 and

the remaining sum of Rs.54.49 Crore was remitted on 27.09.2022, which was

duly acknowledged, as received by the 2nd Respondent / State Bank of India

(Sole Committee of Creditor Member).

5. The aforesaid factum of having received Rs.72 Crore paid by the

'Appellant' is admitted by the 2nd Respondent / State Bank of India (Sole

Member of the Committee of Creditor) side. Based on the said total sum of

Rs.72 Crore, towards the 'Resolution Plan', having been remitted and

received by the 2nd Respondent / State Bank of India (Sole Member of the

Committee of Creditor), the Learned Counsel for the 'Appellant' prays for an

'Order' being passed by this 'Tribunal' to set aside the 'Order' of

'Liquidation' dated 06.06.2022 in IA/196(CHE)/2022 in IBA/578/2019

passed by the 'Adjudicating Authority' (National Company Law Tribunal,

Special Bench - II, Chennai). For this relief being sought for by the

Appellant, there is 'no objection' on the side of the 2nd Respondent / State

Bank of India (Sole Member of the Committee of Creditor) and on behalf of

the 3rd Respondent / Liquidator respectively.

6. In view of the fact that the 'Appellant' had 'Remitted' a total sum of

Rs.72 Crore to the 2nd Respondent / State Bank of India (Sole Committee of

Creditor Member), in 'Terms of Settlement', and that fact is 'not Company Appeal (AT)(CH)(Ins) No.245/2022 Page 3 of 6 Contradicted' on the 'Respondents' side, this 'Tribunal', to 'prevent an

aberration of Justice' and to 'permit the substantial cause of Justice', 'sets

aside' the 'Order of Liquidation' dated 06.06.2022 in IA/196(CHE)/2022 in

IBA/578/2019 passed by the 'Adjudicating Authority' (National Company

Law Tribunal, Special Bench - II, Chennai), and directs the 'Adjudicating

Authority' (National Company Law Tribunal, Special Bench - II, Chennai),

to take on 'Record' the 'Improved Resolution Plan' dated 30.08.2022, which

was submitted by the 'Appellant' to the 2nd Respondent / State Bank of India

(Sole Member of the Committee of Creditor) and to proceed further, as per

the 'ingredients of the Insolvency & Bankruptcy Code, 2016 and as per the

'Rules and Regulations' that are in force.

7. Added further, the 3rd Respondent / Liquidator, is to be continued as the

'Resolution Professional' for carrying out the Committee of Creditor's

Proceedings, in view of the fact, that he is 'currently' / 'presently' in-charge

of the 'Operations of the Corporate Debtor'.

8. As regards the 'Exclusion of a Time', prayed for, by the 'Appellant',

i.e., from 07.03.2022 till 28.09.2022 (205 Days), being the 'Time Spent'

before the 'Adjudicating Authority' (National Company Law Tribunal,

Special Bench - II, Chennai) and the 'Period Spent' from 06.06.2022, till 'this

Date (13.10.2022), shall be 'Excluded', for the purpose of computing the Company Appeal (AT)(CH)(Ins) No.245/2022 Page 4 of 6 'Completion of Corporate Insolvency Resolution Process' period, by the

'Adjudicating Authority' (National Company Law Tribunal, Special Bench -

II, Chennai).

9. Added further, a sum of Rs.72 Crore remitted by the 'Appellant' (in

'Two Instalments') before the 2nd Respondent / State Bank of India (Sole

Member of the Committee of Creditor) and received by the said Bank, the

Bank is permitted by this 'Appellate Tribunal' to take a 'Plea' before the

'Adjudicating Authority' (National Company Law Tribunal, Special Bench -

II, Chennai), with regard to an 'Appropriation' of a sum of Rs.72 Crore and

in such an event, the 'Adjudicating Authority' (National Company Law

Tribunal, Special Bench - II, Chennai) is to take a 'Final Call' in the matter,

of course, in the manner 'known to Law' and 'in accordance with Law'.

With the above said 'Observations and Directions', the instant Comp.

App. (AT)(CH)(Ins) No.245/2022 stands 'disposed of'. No Costs. In view

of the 'disposal of' Main Comp. App. (AT)(CH)(Ins) No.245/2022, the

connected IA/519/2022 (for 'Stay) and IA Nos.636/2022 and IA/838/2022 are

Closed.

In the teeth of 'disposal of' Main Comp. App. (AT)(CH)(Ins)

No.245/2022 by this 'Appellate Tribunal', the 'Contempt Case (AT)

Company Appeal (AT)(CH)(Ins) No.245/2022 Page 5 of 6 No.5/2022', in Comp. App. (AT)(CH)(Ins) No.245/2022 filed by the

'Applicant' / 'Appellant' is 'Dismissed'.

[Justice M. Venugopal] Member (Judicial)

[Naresh Salecha] Member (Technical)

ghk/tm

Company Appeal (AT)(CH)(Ins) No.245/2022 Page 6 of 6