Sunil Jain v. Punjab National Bank

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The Tax Publishers 2019 TaxPub(CL) 0739 (NCLAT-Del) : (2019) 153 SCL 0508 Sunil Jain v. Punjab National Bank INSOLVENCY AND BANKRUPTCY CODE, 2016 --Appeals and Appellate Authority--Appeal against approval of resolution plan on ground of violation of provisions of Companies Act Whether compliance of provisions of Companies Act can be completed after approval of resolution plan----Where proposal of taking over of shares of promoters of corporate debtor was approved by NCLT, the provisions of sections 56 and 57 of Companies Act, 2013 could be complied with even after approval of resolution plan at the stage of implementation of plan.--In the CIRP of corporate debtor, the NCLT approved the resolution plan submitted by company-CP. 'S', promoter of corporate debtor, filed an appeal on the ground that the resolution plan so approved was not in accordance with law, as right of shareholders were extinguished in violation of sections 56 and 57 of the Companies Act, 2013. *Held:* It was observed that the proposal of taking over the shares of the promoters was approved by the NCLT, therefore, there was no requirement to comply with the provisions of sections 56 and 57 of the Companies Act, 2013, as being a formality, it could be completed even after the approval of the resolution plan at the stage of implementation of the plan. Insolvency and Bankruptcy Code, 2016, , Sections 61 & 31 Companies Act, 2013, Sections 56 & 57 *REFERRED :* FAVOUR : Against the appellant A.Y. : INSOLVENCY AND BANKRUPTCY CODE, 2016, --Appeals and Appellate Authority --Appeal by promoter against rejection of resolution plan Resolution plan submitted by successful resolution plan superior than resolution plan of promoter --Whether rejection of resolution plan of promoter justified--Where resolution plan submitted by successful resolution applicant was superior than resolution plan submitted by appellant/promoter, the Adjudicating Authority rightly rejected the resolution plan submitted by appellant/promoter.--Resolution Professional (RP) received two resolution plans, one from appellant/promoter and other from 'CP'. The Committee of Creditors (CoC) rejected the resolution plan of appellant/promoter on ground of ineligibility under section 29A(c). Therefore, appellant/promoter filed an appeal against the order. *Held:* The CoC found that the resolution plan submitted by successful resolution applicant 'CP' was superior than the resolution plan as submitted by the appellant/promoter while evaluating the suitability, feasibility and commercial viability of the corporate debtor. Thus, Adjudicating Authority had rightly admitted resolution plan submitted by 'CP'. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2019 TaxPub(CL) 0739 (NCLAT-Del) : (2019) 153 SCL 0508

Sunil Jain v. Punjab National Bank

INSOLVENCY AND BANKRUPTCY CODE, 2016

--Appeals and Appellate Authority--Appeal against approval of resolution plan on ground of violation of provisions of Companies Act Whether compliance of provisions of Companies Act can be completed after approval of resolution plan----Where proposal of taking over of shares of promoters of corporate debtor was approved by NCLT, the provisions of sections 56 and 57 of Companies Act, 2013 could be complied with even after approval of resolution plan at the stage of implementation of plan.--In the CIRP of corporate debtor, the NCLT approved the resolution plan submitted by company-CP. 'S', promoter of corporate debtor, filed an appeal on the ground that the resolution plan so approved was not in accordance with law, as right of shareholders were extinguished in violation of sections 56 and 57 of the Companies Act, 2013. Held: It was observed that the proposal of taking over the shares of the promoters was approved by the NCLT, therefore, there was no requirement to comply with the provisions of sections 56 and 57 of the Companies Act, 2013, as being a formality, it could be completed even after the approval of the resolution plan at the stage of implementation of the plan.

Insolvency and Bankruptcy Code, 2016, , Sections 61 & 31

Companies Act, 2013, Sections 56 & 57

REFERRED :

FAVOUR : Against the appellant

A.Y. :

INSOLVENCY AND BANKRUPTCY CODE, 2016,

--Appeals and Appellate Authority --Appeal by promoter against rejection of resolution plan Resolution plan submitted by successful resolution plan superior than resolution plan of promoter --Whether rejection of resolution plan of promoter justified--Where resolution plan submitted by successful resolution applicant was superior than resolution plan submitted by appellant/promoter, the Adjudicating Authority rightly rejected the resolution plan submitted by appellant/promoter.--Resolution Professional (RP) received two resolution plans, one from appellant/promoter and other from 'CP'. The Committee of Creditors (CoC) rejected the resolution plan of appellant/promoter on ground of ineligibility under section 29A(c). Therefore, appellant/promoter filed an appeal against the order. Held: The CoC found that the resolution plan submitted by successful resolution applicant 'CP' was superior than the resolution plan as submitted by the appellant/promoter while evaluating the suitability, feasibility and commercial viability of the corporate debtor. Thus, Adjudicating Authority had rightly admitted resolution plan submitted by 'CP'.