Kotharishah Texturisers Pvt. Ltd Vs Kimaya Industries Private Limited (NCLT Ahmedabad)
NCLT Ahmedabad held that application u/s. 30(6) of IBC by Resolution Professional not admitted inspite of approval by the sole unsecured financial creditor since it is not in compliance with section 30(2) of the Code, insofar as the dues of the state tax department under GVAT are not considered.
Facts- This application has been filed under Section 30(6) of the Insolvency & Bankruptcy Code, 2016 by the Resolution Professional of the corporate debtor to approve the Resolution Plan dated 16.08.2023 of Resolution Applicant Mr. Rakesh Omprakash Bhandari as agreed upon by the requisite majority of the CoC by 100% votes as per the provisions of the Code.
Conclusion- Held that though the Resolution Plan has been approved by the sole unsecured financial creditor having 100% vote, it is not in compliance with section 30(2) of the Code, insofar as the dues of the state tax department under GVAT are not considered. Further, in terms of the judgement of the Hon’ble Supreme Court in Rainbow Papers Limited, any plan should contain a provision regarding payment of dues under GVAT Act, otherwise it would be treated as contravention of law. Operational creditors have been left worth of the SRA is also not mentioned in the application. The SRA, who is an individual, has proposed to fund the plan from its own, family members and borrowing from financial institution. Therefore, the feasibility and viability of the plan appears to be doubtful. Apart from this, challenge has been made by an operational creditor to the constitution of COC. Be that as it may, after considering all the facts involved in this case, we are of the view that this application cannot be admitted as it is in direct contravention with section 30(2) of the Code. Accordingly, we are passing necessary orders for liquidation of corporate debtor.
