NCLAT Sets Aside The Liquidation Order Of Ballarpur Industries Limited
Pallavi Mishra
2 May 2022 4:15 PM GMT
The National Company Law Appellate Tribunal ("NCLAT") Principal Bench comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Finquest Financial Solutions Pvt. Ltd. v Anuj Jain (Erstwhile RP of Ballarpur Industries Ltd.) & Ors., has set aside the order dated 25.01.2022 passed by NCLT Mumbai...
The National Company Law Appellate Tribunal ("NCLAT") Principal Bench comprising of Justice Ashok Bhushan (Chairperson) and Ms. Shreesha Merla (Technical Member), while adjudicating an appeal filed in Finquest Financial Solutions Pvt. Ltd. v Anuj Jain (Erstwhile RP of Ballarpur Industries Ltd.) & Ors., has set aside the order dated 25.01.2022 passed by NCLT Mumbai Bench ("Adjudicating Authority") whereby Ballarpur Industries Ltd. was sent to liquidation. Now the NCLAT Bench has extended the Corporate Insolvency Resolution Process ("CIRP") period till 30.04.2022 and has directed the Resolution Professional to get the revised resolution plan approved by the Adjudicating Authority. The order was passed on 19.04.2022.
Background Facts
The Adjudicating Authority had initiated CIRP against Ballarpur Industries Ltd. ("Corporate Debtor") vide an order dated 17.01.2020 passed in M/s Finquest Financial Solutions Pvt. Ltd. v Ballarpur Industries Ltd., CP (IB)-2915/I&B/MB/2019. Thereafter, an interim application bearing I.A. No. 2510 of 2021 was filed before the Adjudicating Authority for liquidation of the Ballarpur Industries Ltd. ("Corporate Debtor") and order for liquidation was passed on 25.01.2022.
An appeal was filed by Finquest Financial Solutions Pvt. Ltd. ("Resolution Applicant/Appellant") before the NCLAT against the order dated 25.01.2022. The Appellant had submitted that the order dated 25.01.2022 was uploaded on 22.02.2022 and in the meanwhile a revised Resolution Plan was submitted by the Appellant on 07.02.2022, which was considered by the Committee of Creditors ("CoC") in its meeting dated 11.02.2022. Consequently, the Resolution Professional had filed an I.A. No. 402/2022 before the Adjudicating Authority for reconsideration of the Resolution Plan.
On 07.03.2022 the NCLAT had stayed the order for liquidation dated 25.01.2022 and had directed the CoC to reconsider the Revised Resolution Plan within a period of six weeks. Thereafter, the I.A. No. 402/2022 was dismissed by the Adjudicating Authority vide an order dated 21.02.2022, stating that the application had become infructuous as the order of liquidation had already been passed.
The Resolution Professional had filed an Affidavit before the NCLAT stating that on 14.04.2022 the CoC had approved the Revised Resolution Plan with 88% majority, after considering its feasibility and viability.
Decision Of The NCLAT
The NCLAT Bench after perusing the said Affidavit had set aside the Order dated 25.01.2022. Further, the Resolution Professional has been granted liberty to file an application before the Adjudicating Authority for approval of the revised Resolution Plan and take all other consequential steps. Accordingly, CIRP period has been extended till 30.04.2022.
Case Title: Finquest Financial Solutions Pvt. Ltd. v Anuj Jain (Erstwhile RP of Ballarpur Industries Ltd.) & Ors., Company Appeal (AT) (Insolvency) No. 227 of 2022.
Counsel for Appellant: Senior Advocate Ramji Srinivasan, Adv. N. P. S. Chawla, Adv. Surekh Kant Buxy, Adv. Kinjal Goyal and Adv. Sujoy Datta.
Counsel for Respondents: Adv. Ankur Mittal, Adv. Aishwarya Pandey, Adv. Itisha Gulati, Adv. Meera Murali, Adv. Ramakant Rai, Adv. Yashish Chandra and Adv. Somesh Srivastava, Adv. Shreya Sircar and Adv. Sanjukta Roy.
