Subh Laxmi Investment Advisory Pvt. Ltd. Vs Committee of Creditors of Sintex Plastics Technology Ltd. & Ors. (NCLAT Delhi)
NCLAT Delhi held that order for liquidation of corporate debtor justified since Committee of Creditors [CoC] exercised its commercial wisdom and chose to abstain from voting for resolution plan. Thus, abstaining from voting for resolution plan resulted into expiry of CIRP period and led to liquidation.
Facts- This appeal is filed by the Unsuccessful Resolution Applicant against the order 03.05.2024 passed by the National Company Law Tribunal, Ahmedabad, Division Bench, Court – 1 by which an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 by the RP for the liquidation of the Corporate Debtor, namely, M/s Sintex Plastics Technologies Ltd. has been allowed and Mr. Bimal Ashok Desai has been appointed as the liquidator of the CD.
Conclusion- There is no dispute to the fact that RBL Bank is the sole member of the CoC with 100% voting right. It is also not in dispute that there were three resolution plans before the CoC in which one of the resolution plan was submitted by the Appellant and the sole member of the CoC abstained from voting. The CIRP Regulations provides for different modes of voting. As per the regulations, the members of the CoC may either vote in favor, against or abstain from voting. In the present case, it is alleged that sole member of the CoC abstained from voting, therefore, the resolution plan submitted by the Appellant was not rejected but the very fact that the sole member of the CoC did not vote in favour of the resolution plan submitted by the Appellant, therefore, it had exercised its commercial wisdom and chose to abstain from voting.
