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Judgment
IA-1393(PB)/2020
This is an application filed by three applicants being employees. Ld. Counsel states that the application has become infructuous as the prayer for consideration of the claim of these employees has been met and the RP has admitted the claims of these applicants. Hence the application becomes infructuous and accordingly disposed of.
IA-1513(PB)/2020
This is an application filed by M/s. Hindustan Coils Limited seeking direction for consideration of its resolution plan. Mr. Ganda, Ld. Sr. Counsel appearing on behalf of the applicant submitted that the applicant on affirmation has made an offer for a total payment of Rs. 50.01 Crore, which is around 12% more than the offer of the successful resolution applicant, who has offered to make payment of Rs. 45.11 Crore. He also submitted that after getting further information/details about the corporate debtor the applicant shall further enhance and improve the offer. In addition, Ld. Sr. Counsel submitted that the applicant has come with a cheque for Rs. 5 Crores as a performance security and undertakes that in case the applicant backs out the CoC will have a right to forfeit the said performance security amount.
Ld. counsel for RP raised no specific objection, but submitted that if directed the enhanced offer of the applicant shall be placed before CoC for consideration.
In the present case admittedly liquidation value of the corporate debtor is Rs. 42.89 Crore and the fair value is Rs. 63.72 Crore. The resolution plan submitted by the successful resolution applicant offers to make payment of Rs. 45.11 Crore. Present applicant offers to pay Rs. 50.01 Crore which is of Rs. 4.90 Crore more.
The object of the Code encourages maximisation of the value of assets of the Corporate Debtor, which is also advantageous to all the stake holders. In the present case resolution plan has not attained finality and in the meantime, there has been substantial enhancement of offer with more than 10% of the amount offered by the successful resolution applicant.
It is the duty of the Court to satisfy itself that the price offered is reasonable and best as per the available records. Unless the Court is satisfied about the adequacy of the price, routine confirmation of sale would not be a proper exercise of judicial discretion. Substantial enhancement of more than 10% offer made before court before finality of the matter, therefore cannot be totally overlooked.
As a sequel to the aforesaid discussion let the interim application along with the proposed plan be placed before CoC, for which the CoC meeting may be called. The Cheque for Rs. 5 Crores tendered by the applicant be retained by the RP on behalf of CoC. Applicant is given leave to approach RP for the required information, if any. CoC is afforded further opportunity to evaluate the offer/enhanced offers inter alia of the applicant and the successful resolution applicant as per law within 30 days hereof.
Process dasti.
List for further consideration on 25.03.2020.
IA-2862(PB)/2019
List on 25.03.2020.