Rajputana Constructions Pvt. Ltd Vs Rajasthan Land Holdings Limited (NCLAT Delhi)
NCLAT Delhi held that continuing Corporate Insolvency Resolution Process [CIRP] not justified as Corporate Debtor has sufficient funds to discharge the admitted claims of CoC. Thus, adjudicating authority rightly terminated CIRP of Corporate Debtor.
Facts- The present set of two appeals filed under Section 61 of Insolvency and Bankruptcy Code 2016 by the Appellants arises out of a common Order dated 20.04.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Jaipur Bench). By the impugned order, the Adjudicating Authority has terminated the Corporate Insolvency Resolution Process of the Corporate Debtor and reduced the fees and remuneration payable to the erstwhile Resolution Professional. Aggrieved by the impugned order, appeals are preferred by the Operational Creditor and also by the RP.
Conclusion- Held that RCPL has only raised doubts and questions on ITNL’s locus and standing with respect to the settlement proposal but cleverly skirted to address the more relevant and pertinent question as to why the Operational Creditors were unwilling to claim their dues when it was being fully repaid. When sufficient fund was already available with the Corporate Debtor to liquidate the debt of the Corporate Debtor, we see no cogent reasons offered by the Operational Creditors in declining to accept their entire admitted claim and closing the CIRP.
