Yamuna Infradevelopers Pvt. Ltd vs Rakesh Takyar, Resolution ...
- CitationCompany Appeal (AT) (Insolvency) No. 158 of 2020
Ratio decidendi
The rule this decision rests on
The reasoning in this order rests on the following principles, in the order the Tribunal takes them: Where the Committee of Creditors, in a Corporate Insolvency Resolution Process in which no resolution plan has been received, resolves by its full voting to recommend liquidation of the corporate debtor, and the Adjudicating Authority has before it no resolution plan to consider, the Adjudicating Authority has no option other than to order liquidation of the corporate debtor. A one-time settlement proposal made by the corporate debtor which the financial creditor does not accept does not prevent or displace the liquidation consequent upon the Committee of Creditors' recommendation. A proposal by an eligible person to settle and satisfy the claims of the creditor may still be floated after liquidation has commenced, there being no legal impediment to its consideration under Sections 230 and 232 of the Companies Act, 2013.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Yamuna Infradevelopers Pvt. Ltd. ....Appellant
Vs.
Rakesh Takyar, Resolution Professional & Ors. ....Respondents
Present: Appellant: Ms. Nidhi Saini, Advocate Respondent: Mr. Rupansh Purohit, Advocate for R-1 & 4 Mr. Ankit Raj and Mr. Piyush Beriwal for Respondent No. 2 (OBC)
ORDER
06.02.2020: The Corporate Debtor has been sent into liquidation as during
the Corporate Insolvency Resolution Process no resolution plans were received
by the Resolution Professional who placed the proposal for liquidation of
Corporate Debtor before the Committee of Creditors, which in its meeting held
on 3rd October, 2019 decided to recommend liquidation of the Corporate Debtor
with 100% voting. Admittedly the OTS proposal was made by the Corporate
Debtor but the same did not find favour with the Financial Creditor.
2. Having heard learned Counsel for the Appellant we find no legal infirmity
in the Impugned Order. In the given circumstances, learned Adjudicating
Authority (National Company Law Tribunal), New Delhi Bench was left with no
option but to pass an order of liquidation.
-2-
3. Learned Counsel for the Appellant submits that the Corporate Debtor is
even now ready to settle and satisfy the claim of sole Financial Creditor. If that
be so, the eligible person may float the proposal in terms of provisions of Section
230 & 232 of the Companies Act, 2013, there being no legal impediment to
entertain and consider such proposal even when the liquidation is underway.
4. The Appeal being devoid of merit, is dismissed.
[Justice Bansi Lal Bhat] Member (Judicial)
[V. P. Singh] Member (Technical)
[Shreesha Merla] Member (Technical) am/nn
Company Appeal (AT) (Insolvency) No. 158 of 2020
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