SEBI and Corporate Laws – July 15, 2019

2019] 47

CASE DIGEST

12A for withdrawal of CIRP of corporate debtor coupled with onetime settlement
(OTS) offer of financial debt - Said OTS proposal was from promoter of corporate
debtor who was fugitive economic offender and thus, ineligible under section 29A

• Union of India through MCA opposed said withdrawal application on pretext
  that promoters were wilful defaulter and after permitting withdrawal of CIRP
  process they would get management and control of corporate debtor company
  under guise of section 12A - Further, after getting application under section 12A,
  RP asked CoC to provide him details of OTS offer, sources of funds, time frame for
  payment to lender but, CoC did not submit any information to RP - Thus, section
  12A application filed by financial creditor seeking withdrawal of CIRP initiated
  against corporate debtor was rejected - Meanwhile, 270 days of CIRP period ended,
  and sole resolution plan submitted by resolution applicant ‘A’ was also rejected by
  majority of CoC members - Whether since no resolution plan had been approved
  despite completion of CIRP period, order for liquidation of corporate debtor was
  to be passed - Held, yes

CASES REFERRED TO
K. Sashidharand v. Indian Overseas Bank [Civil Appeal No. 10673 of 2018 , dated 5 -^2 -^2019 ]
365 Swiss Ribbons (P.) Ltd.^ v.^ Union of India [^2019 ]^101 taxmann.com^389 /^152 SCL^
(SC).

Gaurav Joshi

,

Sr.

Counsel,

Nishit Dhruva

,

Prakash Shinde

,

Dasshit Dave

,

Sundaresh Bhat

,

Zal Andhyarujina

,

Nirav Shah

,

Advs.

Janak Dwarkadas

,

Sr.

Counsel,^

Ms. Pooja Vikram Chaudhri

,

Sr.

Counsel,

Akshay Patil

,
Counsel,
Li-
mosin A.

,

SVPP,

M.K. Singh

,

Adv.,

Aditi Phatak

and

Sanjay Shorey

,

Director

for the Appearing Parties.
nn

[2019] 154 SCL 47 (Mag.)/106 taxmann.com 201 (NCLT - Mum.)

NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH

Alchemist Asset Reconstruction Company Ltd. v. Dugal Projects

Development Company (P.) Ltd.

V.P. SINGH, JUDICIAL MEMBER

AND RAVIKUMAR DURAISAMY, TECHNICAL MEMBER

CP(IB) NO. 2527/MB/2018

MAY 8, 2019

Proceedings under section 7 is only concerned with existence of debt and