Case Law Details
Guruprasad V Hishobkar Vs Aashraya Souhard Credit Society Limited (NCLAT)
NCLAT held that that the Adjudicating Authority rightly rejected the Resolution plan as the same didn’t complied with the provisions of Section 29A(G) read with Section 240A of the Insolvency and Bankruptcy Code, 2016.
Facts- This appeal is filed by the Appellant who is the Promoter / Shareholder of Corporate Debtor. The First Respondent is a Co-operative Society registered under the ‘Karnataka Co-operative Societies Act, 1959’ and subsequently got registered under ‘Karnataka Souharda Sahakari Act, 1977’ and changed its name to ‘Shree Aashraya Souhard Credit Society Limited’. The Corporate Debtor is a Company which is engaged in the business of Real Estate and Construction, having few Common Directors with the Petitioner’s Society based on which the Petitioner (‘Financial Creditor’) had provided Secured Cash Credit Facility to the tune of Rs. 14 Crores, prior to 1997 and thereafter extended Cash Credit Facilities. It was averred that the loan amount was disbursed in several tranches and since the management of the Financial Creditor and the Corporate Debtor is the same, the Corporate Debtor was able to pool in huge investments from a large number of small investors. The Corporate Debtor did not create a charge on the assets of the Corporate Debtor.
The Financial Creditor issued various loans calling upon the Corporate Debtor to repay the loan amount for which the Corporate Debtor issued Reply letters but never made the payments. The Financial Creditor also got issued a Legal Notice on 01/03/2018 which was returned on 10/03/2018 with an endorsement ‘Not Claimed’.
The Depositors of the Society approached the Registrar of the Co-operative Society and expressed their grievance before him, after which the Registrar appointed a Special Officer to facilitate the holding of Elections in the Society and to appoint a new Board of Directors to regularise the operations of the Financial Creditor. Thereafter, the Liquidator was appointed on 14/01/2019 to recover the pending dues and settle the dues of a large number of individual investors.
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