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Judgment
O R D E R
06.02.2024: I.A. No. 817 of 2024. This is an Application praying for following reliefs:-
“Therefore, in view of the aforesaid application and submissions made herein it is most respectfully prayed before this Hon'ble Appellate Tribunal that it may kindly be pleased to:
A. Modify the order dated 01.02.2024 passed by this Hon'ble Appellate Tribunal to the extent that it does not hinder the implementation of the Base Resolution Plan.
B. Pass any other order which this Hon'ble Appellate Tribunal may deem fit in favour of the Applicant Company.”
In this Appeal, an Interim Order was passed on 20th November, 2023 which is to the following effect:-
“In the meantime, proceedings of implementation of the Resolution Plan may go on which shall abide by the result of the Appeal.”
Subsequently, another order was passed on 01st February, 2024, which is to the following effect:-
“01.02.2024 Learned Counsel for the SBI and IBBI are permitted to file their Vakalatnama as well as the Reply within two weeks as a last opportunity.
Sale of assets shall not take place till the next date.
List these Appeals on 29th February, 2024.”
The Application have been filed praying for modification of the order dated 01st February, 2024 to the extent that it does not hinder the implementation of the base Resolution Plan.
Learned counsel for the Applicant submits that in the Resolution Plan, an addendum was also furnished to the Financial Creditors and Lenders in which details of sale of obsolete plant and machinery was also contemplated and sale of plant and machinery was identified in clarification 3 which is to the following effect:
3.Sale of Plant & Machinery: Our of Four manufacturing plants of the Corporate Debtor, it has been proposed to sell two plants viz.,-(a) Syntex Plant and (b) Polycot Plant along with captive Thermal Power Plant (TPP) of 8.0 MW capacity which together is expected to realise Rs. 15.62 crore based on following Valuation of assets:
(Rs. Lacs)
| S. No. | Plant | Fair Market Value | Liquidation Value |
|---|---|---|---|
| 1 | Syntex Plant | 781.20 | 624.96 |
| 2 | Polycot Plant | 564.00 | 451.20 |
| 3 | Thermal Power Plant | 352.21 | 281.77 |
| Total | 1697.41 | 1357.93 |
It is submitted that the plan also contemplated payment of third instalment by sale of obsolete plant and machinery and the SRA has taken steps for the sale of obsolete plant and machinery to make the payment of third instalment.
Learned counsel appearing for the Appellant opposing the submissions submits that the Appeal itself may be heard and in event the plant and machinery is permitted, the result may be irreversible. He further submits that the order impugned does not merit confirmation and need to be interfered with in this Appeal. It is submitted that impugned order is not in conformity to another order passed by coordinate bench.
We have considered the submissions of Learned Counsel for the parties and have perused the record.
When Interim Order was passed on 20th November, 2023, we provided that proceeding for implementation of the plan may go on which shall abide by the result of the Appeal. Learned Counsel for the Applicant submits that the Applicant does not propose to sell any land and building of the assets and sale which is contemplated in the sale of obsolete plant and machinery which is only be permitted and only clarification to that extent may be issued.
In view of the aforesaid, we are of the view that since the sale of obsolete plant and machinery was contemplated in the plan, we clarify that sale shall be permitted and order dated 01st February, 2024 is clarified accordingly. We however direct that in the sale of obsolete plant and machinery, the interim order passed by this Tribunal on 20th November, 2023 may also be put as an information so that the sale may take place subject to interim order dated 20th November, 2023 which should be informed to purchasers.
With the above clarification, we dispose of the Application. Pleadings are complete. List this Appeal on 19th February, 2024 at 02:00 pm.