- (1.) M.A. No.548 of 2017 in CP 1A/I&BP/NCLT/MUM/2017 It's an application moved by Western India Erectors LLP through its partners under Section 60(5) of the Insolvency & Bankruptcy Code, 2016 to quash the resolution passed by CoC in its meeting dated 10.10.2017 and to direct the COC to reconsider the resolution plan submitted by this applicant and other reliefs.
(2.) On the Resolution Professional having given publication for submission of resolution plan, the applicant herein submitted a resolution plan on 6.9.2017 in terms of Section 30 (2) of Insolvency & Bankruptcy Code, r/w Regulations 37 & 38 of IBBI Regulations, 2016. When this plan was placed before COC in the meeting dated 30.8.2017, the CoC was of the view that the resolution applicant might present revised resolution plan with the RP. Accordingly, when the applicant submitted revised resolution plan with RP on 18.9.2017, it came before CoC on 14.9.2017. In the said meeting, the COC decided to take this Revised Resolution plan to their higher authorities for further consideration, thereafter, in the following COC meeting held on 10.10.2017, it has unilaterally and arbitrary rejected the plan without even considering the revised resolution plan in the light of the provisions of IBC.
(3.) This applicant further submits, by looking at the report of the Joint Committee of Insolvency & Bankruptcy Code, the intent and purpose of the IBC appears to be to provide an effective framework for timely resolution of Insolvency and Bankruptcy, it is also apparent in the report that liquidation of the company shall be exercised as a last resort and the resolution of the Corporate Debtor shall be the priority and primary objective. But on the contra, the COC has not gone into the interest of all the stakeholders including management, workers, employees, Operational Creditor. The applicant further submits that this company has 760 employees/workmen, who are the bread winners of their respective family thereby almost 2000 people are associated with the Corporate Debtor for the purpose of their livelihood, therefore, any unilateral or arbitrary decision to reject a resolution plan and proceed for liquidation of the Corporate Debtor would lead to grave prejudice of unemployment to the above people. The applicant has gone ahead saying that since the COC is a creature of the statute under Section 21 of Insolvency & Bankruptcy Code, 2016, it is significant for the COC to observe and follow the principles of natural justice, but whereas the COC has contravened the principles of natural justice by not considering the aspects of the viable resolution plan which is in the interest of all the stakeholders.;