Earthin Projects Limited vs Indu Projects Limited And Ors

K. Anantha Padmanabha Swamy, J

The present Application bearing IA No. 446 of 2020 in CP (IB) No. 372/7/HDR/2018 is filed through email by Resolution Applicant (RA) i.e., M/s. Earthin Projects Limited under section 60(5) of the IB Code, 2016, against the RP of the Corporate Debtor and CoC inter-alia, seeking the following relief(s) as stated under:

a. Allow the intervention application impleading the petitioner as party in the present proceedings and direct the Resolution Professional to call for CoC meetings to consider and vote on the Resolution plan received from the Earthin Projects Ltd; or

b. To pass such other order(s) and further relief(s) as the Hon'ble Tribunal may be deem fit in the interest of justice.

The brief facts of the case are as under:

a. That this Adjudicating Authority has admitted the Corporate Debtor herein for CIRP upon Application under section 7 of the IBC, 2016 vide its order dated 25.02.2019 in CP (IB) No. 372/7/HDB/2018 and appointed Mr. Gopikrishna Byadigera as IRP. Later he was replaced with Mr. Anup Kumar Singh as Resolution Professional by CoC in its first meeting held on 18.04.2019 with 80.69% of voting shares in favour of resolution.

b. That it has come to notice of the Applicant herein that the Resolution Professional on 16.07.2019 published 'Form-G' for invitation of Expression of Interest, wherein the last date for submission of Expression of Interest was on or before 31.07.2019 by 17:00 hours, which was extended, however the said advertisement did not come to notice of the Applicant herein and therefore, it could not participate in the proceedings earlier giving its offer. It has come to notice that a resolution plan was filed by another Company, however, the said Resolution Plan was not approved by COC with required majority. The Resolution Professional had filed an Application for Liquidation of Corporate Debtor which is pending for adjudication. The resolution applicant came to know about the CIRP process in 3rd week of March 2020 and started taking steps to submit its resolution plan. However, due to imposition of lockdown by the Central Government, there was delay in submission of Expression of Interest. On relaxation of the restrictions of lockdown, the petitioner herein have taken immediate steps for submitting its EOI and to take forward necessary approvals.

c. That the Resolution Applicant herein namely, Earthin Projects Limited on coming to know about the CIRP process has sent an EOI dated 14.05.2020 & 16.05.2020, being interested in the Corporate Debtor's Resolution Plan and submitted its Expression of Interest to bid for the Corporate Debtor and issued Offer Letter of INR 345 Crores and Letter of Commitment for payment of Resolution fund within a period of 6 months from the date of approval of Resolution Plan.

d. That majority of Members of CoC had already given its approval for exploring the new resolution plan. The consideration of Resolution plan to be submitted by the Applicant would be in the interest of revival of the company and all stake holders in the Corporate Debtor company and also generating employment. The petitioner company to show its bona fide had submitted the Demand Draft vide DD No. 416881 for Rs. 2,00,00,000/- (Rupees two crores only) drawn on Axis Bank, Hyderabad to the Office of Resolution Professional dated 02/06/2020 and further, vide letter dated 02.06.2020 assured of providing Bank Guarantee of Rs. 3,00,00,000/-.

e. That this Adjudicating Authority has overriding effect over all other laws to keep the company on going and all efforts may be made for the same.

f. That the resolution plan submitted to the Resolution Professional from Earthin Projects Limited ought to be considered and deliberated by the CoC to enable the Corporate Debtor to revive and continue as going concern. The Hon'ble Tribunal may give an opportunity to the Resolution Professional to present the Resolution Plan to CoC and put the same for vote in accordance with the provisions of the IBC.

Counsel for RP filed its counter, inter-alia conveying it's no objection in allowing the instant Application as prayed for.

Heard both the sides and perused the record.

The RP/Respondent No. 1 herein has filed an Application bearing IA No. 334/2020, wherein he has sought for the following prayers:-

i. Allow the Resolution Professional to call for CoC meetings to deliberate and vote on the Resolution Plan received from M/s. Earthin Projects Ltd and file necessary application/memos before this Tribunal within 60 days from the date of orders of this Tribunal; or

ii. An exclusion of 54 days from the CJRP period which was ended on 04.02.2020 to enable the Resolution Professional to conduct necessary meetings of Committee of Creditors to deliberate and vote on the Resolution Plan to be provided by M/s. Earthin Projects Ltd.

Upon considering such prayers and submissions, this Adjudicating Authority has excluded a period of 54 days from CIRP vide IA No. 334/2020 on the ground of interest envisaged by the prospective Resolution Applicant, who is also the Applicant herein. As the prayers sought in the instant Application are similar to that of the prayers sought in IA No. 334/2020, this Adjudicating Authority feels that there is no any requirement for adjudicating upon the instant IA or passing of any direction to Resolution Professional to call for CoC meetings to consider and vote on the Resolution plan received from the Applicant. However, Applicant is at liberty to approach RP and CoC as per the provisions of IB Code, 2016 and Regulations thereunder.

Accordingly, IA No. 446/2020 hereby stands disposed of.