Vinay Goel And Consortium Members vs Nibula Print And Pack Pvt Ltd & Ors

IN THE MATTER OF: Vinay Goel and Consortium Members ...Appellant Versus Nibula Print and Pack Pvt. Ltd. & Ors. ...Respondents

Present: For Appellant : Ms. Pritha Srikumar and Ms. Neha M., Advocates.

For Respondents : Mr. Sajeve Deora, Advocate.

Ms. Niti Jain, Advocate for R-5.

Ms. Harimohana N. and Mr. Shivam Nandan Sharma, Advocates for Liquidator.

WITH

Company Appeal (AT) (Insolvency) No. 1347 of 2024

IN THE MATTER OF: Ashok Kriplani Erstwhile RP, Nibula Print & Pack Pvt. Ltd. ...Appellant Versus Nibula Print & Pack Pvt. Ltd. Through Its Liquidator & Anr. ...Respondents

Present: For Appellant : Mr. Sajeve Deora, Advocate.

For Respondents : Ms. Niti Jain, Advocate for R-2.

ORDER

(Hybrid Mode)

18.10.2024 : Heard Learned Counsels appearing for the Appellant,

HDFC Bank - Respondent No. 5, Resolution Professional and Liquidator.

2. This Appeal has been filed against an Order dated 22.04.2024 passed

by the Learned Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court - II), by which Order, I.A. No. 1512 of 2019 filed by the

Resolution Professional for the approval of Resolution Plan has been rejected.

3. Brief facts necessary to be noticed for deciding the Appeal are:

i. The Corporate Insolvency Resolution Process (CIRP) against the

Corporate Debtor commenced on 11.12.2018.

ii. In pursuance of `Form-G' issued by the Resolution Professional (RP),

Resolution Plans were submitted.

iii. Appellant consortium has submitted the Resolution Plan.

iv. In the 15th Meeting of the Committee of Creditors (CoC) held on

08.11.2019 as per the voting 77.91% votes the Plan was approved. The

HDFC Bank holding 20.74% voting shares voted against the Resolution

Plan.

v. RP filed I.A. 1512/2019 seeking approval of the Resolution Plan.

vi. Dissenting Financial Creditor, HDFC Bank filed an Application I.A.

1684/2019 before the Adjudicating Authority objecting to I.A.

1512/2019 and seeking rejection of the Resolution Plan.

vii. The Adjudicating Authority in Paragraph 26 has noted the objections

raised by the HDFC Bank. Para 26 of the Order is as follows:

"26. Now, we would like to examine another objection raised by the Applicant/HDFC Bank regarding its entitlement of amount in terms of Section 30(20 of IBC, 2016. As per the HDFC Bank, its minimum entitlement as Dissenting Financial Creditor (DFC) is computed by the RP at Rs. 1.61 Crore, which is based on the amount receivable by it under Section 53(1) of IBC by applying deeming fiction, if CD goes into the Liquidation. Per Contra, as per RP, the Liquidation value of DFC is Rs. 20 Lakhs only, which is the minimum Liquidation value of the Security Interest held by the HDFC Bank."

Comp. App. (AT) (Ins.) No. 1045, 1046 & 1347 of 2024 2 of 4 viii. After considering the submissions of the Parties, Adjudicating Authority

came to the conclusion that Resolution Plan is in violation of Section

30(2)(b) of the IBC which finding has been returned in Para 37.

ix. Aggrieved by the Order of the Adjudicating Authority rejecting the

Resolution Plan this Appeal has been filed by the Successful Resolution

Applicant (SRA).

4. At the very outset, Learned Counsel appearing for the HDFC on

instructions received from the Bank submits that HDFC Bank is withdrawing

its objection to the Resolution Plan and they have no objection in approving

of the Resolution Plan.

5. Learned Counsel for the RP has submitted that under the Resolution

Plan, the HDFC are getting more amount than one which they were entitled

as per Section 30(2)(b) which is the reason that HDFC has now taken the

stand that the Plan be approved.

6. In view of the above, specially the statement made on behalf of the

Counsel for the HDFC that on instructions that they are withdrawing their

objection to the Resolution Plan, we see no reason to enter into different issues

raised in the Appeal.

7. The main ground for rejection of the Plan was objection by HDFC Bank,

which objection no more surviving, we are of the view that the Resolution Plan

deserves to be approved.

8. We thus set aside the Order passed by the Adjudicating Authority dated

22.04.2024, allow the I.A. 1512/2019. Objections of the HDFC in I.A.

1684/2019 stands withdrawn and the Plan stands approved.

Comp. App. (AT) (Ins.) No. 1045, 1046 & 1347 of 2024 3 of 4

9. Let consequential Order be passed by the Adjudicating Authority

consequent to approval of Plan within a period of 60 days after the Order of

this Tribunal is placed before the Adjudicating Authority.

The Appeal is disposed of accordingly.

In view of the Order passed in Comp. App. (AT) (Ins.) No. 1045 & 1046

of 2024, no Orders are required in Comp. App. (AT) (Ins.) No. 1347 of 2024.

Learned Counsel for the Liquidator submits that Liquidator has

incurred certain fee and expenses. It is open for the Liquidator to make an

appropriate Application before the Adjudicating Authority by making such

Prayers as may be advised in accordance with law.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) himanshu/nn

Comp. App. (AT) (Ins.) No. 1045, 1046 & 1347 of 2024 4 of 4