Case Law Details
Pratap Technocrats P Ltd & Ors Vs. Monitoring Committee of Reliance Infratel Ltd & Anr (NCLAT)
Brief Facts: The version of appellants says that they were kept unaware of the Corporate Insolvency Resolution Process qua the Corporate Debtor, thus being wholly unaware of the progress of Resolution Process with no details provided by the Resolution Professional as regards disbursal of fund towards their claims and that their claims have not received a fair and equitable treatment. And the Appellants have been made to suffer a reduction of around 90% of their total claims while substantial claims of Appellants of around Rs.120 crores have been rejected.
On the other hand, the respondents have been claiming that the Appellants have been treated fairly and allocated 19.62% as against 10.32% allocated to Financial Creditors out of an upfront payment of Rs.3,720 crores under the approved Resolution Plan. And the Appellants have participated in the Resolution Process and their being unaware of the CIRP and its outcome is factually incorrect.
Reason: The NCLAT observed that the Appellants, admittedly being Operational Creditors cannot claim that they have been treated unfairly or inequitably as regards the distribution of funds provided under the approved Resolution Plan. It is not the case of the Appellants that they have been completely ignored or left out of consideration while distributing the upfront money provided under the plan approved by the Committee of Creditors with the requisite majority and finally passing the muster under Section 30(2) of the Insolvency and Bankruptcy Code, 2016, which stands approved by the Adjudicating Authority.
The Appellants are also not justified in claiming that they have been excluded from the Resolution Process proceedings. Admittedly they have filed claims during CIRP proceedings and their claims have been partly admitted. In the face of this factual position, it is of no avail on their part to allege being excluded from CIRP proceedings.
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