KL Rathi Steels Limited vs Mr. Ajit Kumar Jha & Anr.

02.08.2022: Heard Learned Counsel for the parties.

This Appeal has been filed against the Order dated 08^th April, 2022 passed by the Adjudicating Authority by which the Adjudicating Authority has rejected the Application CA-2855/2019 filed by the Appellant. The ‘Corporate Insolvency Resolution Process’ (CIRP in short) with regard to the Corporate Debtor was initiated on 16^th April, 2019 as per From-G inviting Expression of Interest (EOI in short) for Corporate Debtor was published and last date for submission of receipt of EOI was on 21^st August, 2019. The second time Form-G was issued on 19^th November, 2019 where 04^th December, 2019 was fixed last date for submission of receipt of EOI and the last date for submission of Resolution Plan was 06.01.2020. Appellant came to know about the CIRP only in December, 2019 and submitted an EOI on 14.12.2019 which was not accepted by the Resolution Professional and by email dated 14^th December, 2019 Appellant was informed. An application being CA-2855/2019 was filed by the Appellant seeking a direction to Respondent to permit the Appellant to submit a Resolution Plan. Adjudicating Authority by the Impugned Order has rejected the said Application. Aggrieved by the said Order, Appellant has come up in this Appeal.

Learned Counsel for the Appellant submits that EOI was delayed only for 10 days and the Corporate Insolvency Resolution Process being current, he could very well have been permitted to submit his EoI. He submits that the Adjudicating Authority further observed that as per Regulation 36A(6) of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the EOI of the Appellant not being in accordance with the Regulation 36A is to be rejected. 3. Learned Counsel for the Respondent submits that Resolution Plan has already been approved by the Committee of Creditors (CoC in short) on 01^st February, 2020 and Application for approval of the Resolution Plan is pending before the Adjudicating Authority.

We have considered the submissions of Learned Counsel for the parties and perused the record.

From the facts which have been brought on record, it does appear that Appellant’s EOI was submitted delayed and submitted after 10 days after last days were over. Resolution Professional Communication refusing the EOI can not be faulted. The Adjudicating Authority has also by the Order rejected the Application filed by the Appellant. The Resolution Plan was approved in February, 2020 more than two and half years have elapsed when the Resolution Plan was approved. Period of CIRP having expired long ago and the Application being pending for approval of the plan before the Adjudicating Authority, at this stage, we are not inclined to issue any direction as prayed by the Appellant in his Application. Issuing any direction at this stage shall be putting the clock back the period of CIRP being long over, no such order be passed.

Learned Counsel for the Appellant has relied on the Judgment of Hon’ble Apex Court in the matter of Kalpraj Dharamshi & Anr. Vs. Kotak Investment Advisors Ltd. (2021) 10 SCC 401. Learned Counsel submits that in the said case, the Adjudicating Authority has accepted the EOI after the time was over which was approved by the Hon’ble Supreme Court. The fact that EOI was accepted beyond the last date for, is always in the domain of CoC and in event within the timeline of CoC the said delayed EOI accepted, no exception can be taken. The Hon’ble Supreme Court relied by the Appellant is clearly distinguishable and is not attracted in the facts of the present case. We thus are of the view that no relief can be granted to the Appellant in the present Appeal. The Appeal is dismissed.