Case Law Details
Bankey Bihari Infrahomes Pvt. Ltd Vs Alok Kumar Kuchchal (NCLAT Delhi)
NCLAT Delhi held that scheme of compromise and arrangement is found to inflate the total payments by provisioning payment to creditors who are related to corporate debtor. Hence, impugned order allowing the Liquidator to proceed with the e-auction and not allowing any more time for consideration of the scheme proposed under section 230 of the Companies Act, 2013 is sustainable.
Facts-
Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor Ratandeep infrastructure Pvt. Ltd. vide order dated 16.4.2019 of the Adjudicating Authority on an application u/s. 7 of the IBC filed by Nitin Jain & Anr. as Financial Creditor. Upon unsuccessful completion of CIRP, order for liquidation of the corporate debtor was passed on 31.1.2022 in IA No. 73/2021 and Alok Kumar Kuchchal/ Respondent was appointed as the Liquidator.
The Appellant preferred IA No. 115/2022 under section 60(5) of IBC seeking direction to the Resolution Professional to place the scheme of compromise and arrangement submitted by the Appellant u/s. 230 of the Companies Act, 2013 read with Regulation 2B of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (in short ‘Liquidation Process Regulations’). This IA No. 115/2022 was disposed by the Adjudicating Authority vide order dated 13.4.2022, whereby the Liquidator was directed to consider the scheme of comprise and arrangement submitted by the Appellant and the time allowed for completion of this exercise was three weeks.
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