AI Structured Summary
Not yet generated for this judgment
Judgment
ORDER
Heard Learned Counsel for the Appellant.
This Appeal has been filed against the order dated 07.10.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Court-V, Mumbai Bench, by which order the Resolution Plan of ‘M/s. Saral Industries’ (Resolution Applicant) has been approved. The CIRP proceeding was initiated by order dated 18.12.2019 on the basis of Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (‘I&B Code” for short) by the Appellant. The Appellant’s case is that the claim value of the Appellant was more than 10% and he was permitted to participate in the meeting of the Committee of Creditors (CoC).
Learned Counsel for the Appellant submits that the Resolution Plan has allocated only an amount of Rs. 17.25 lakhs to the Operational Creditors which is only 0.46%. Learned Counsel further submits that the treatment of the Operational Creditors is inequitable and no benefit can be received by approval of such plan.
We have considered the submissions of the Learned Counsel for the Appellant and perused the record.
Present is not a case where any other Operational Creditor has been paid any higher amount as has been allocated to the Respondent. The CoC has already approved the Resolution Plan in its 13th meeting on 06.03.2021. The Hon’ble Supreme Court in “Committee of Creditors of Essar Steel India Limited vs. Satish Kumar Gupta and Ors.-(2020) 8 SCC 531” has already laid down the parameters of judicial review of the commercial wisdom of the CoC. It has been held that equal treatment is to be accorded to each creditor depending upon the class to it belong. The CoC having already approved the Resolution Plan, we on the submission made by the Appellant that he has received insignificant amount in the Resolution Plan, are not persuaded to interfere with the order of the Adjudicating Authority. The Hon’ble Supreme Court in “K. Sashidhar v. Indian Overseas Bank- (2019) 12 SCC 150” has categorically laid down that legislature has not endowed the Adjudicating Authority with the jurisdiction or authority to analyse or evaluate the commercial decision of the CoC.
We do not find any error in the impugned judgment. There is no merit in the Appeal. The Appeal is dismissed.