Advocate Sushila
NCLAT SETS ASIDE DECISION OF CREDTIORS ALLOWING EXPRESSION OF INTEREST BEYOND DUE DATE

NCLAT SETS ASIDE DECISION OF CREDTIORS ALLOWING EXPRESSION OF INTEREST BEYOND DUE DATE

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (#NCLAT) comprising of Justice Mr. Jarat Kumar Jain Member (Judicial) and Mr. Kanthi Narahari Member (Technical) passed a #Judgment dated 30-06-2021 in the case of Dwarkadhish Sakhar Karkhana Ltd. v. Pankaj Joshi and Anr and connected matters and held that the decision of Committee of Creditors (#CoC) accepting the Expression of Interest (#EOI) of Dwarkadhish Sakhar Karkhana Ltd. (DSKL) after #due date, is not a commercial decision.


In the present case, the National Company Law Tribunal, Special Bench, Mumbai (Adjudicating Authority) passed an Order dated 10-10-2019 in CP (IB) 2156/MB/2019 wherein the Canara Bank had filed a Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Corporate Insolvency Resolution Process (CIRP) was initiated in respect of the Corporate Debtor ‘KGS Sugar and Infra Corporation Ltd’. Thereafter, moratorium was declared under Section 14 of IBC and one, Mr. Balady S. Shetty was appointed as the Interim Resolution Professional (IRP). The CoC in its first meeting, appointed Mr. Balady S Shetty as Resolution Professional (RP). Mr. Shetty published the Invitation for Expression of Interest (EOI) on 18-01-2020, wherein the last date for submission of EOI was 10-02-2020 and that for submission of Resolution Plan, was 05-04-2020. DSKL was asked to submit the EOI before the 7th CoC Meeting. The CoC passed the Resolution unanimously and rejected the request of DSKL for submitting EOI. This decision was communicated by the RP to DSKL on 09-04-2020. Later, the Adjudicating Authority, at the recommendation of the CoC, replaced Mr. B S Shetty and appointed Mr. Pankaj Joshi as the RP, vide Order dated 27-05-2020.


To read more, please visit the link below:


https://theindianlawyer.in/nclat-sets-aside-decision-of-credtiors-allowing-expression-of-interest-beyond-due-date/


#nclat #ibc #creditor #expressionofinterest

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