Professional Documents
Culture Documents
Sale of CD Assets Shown As OTS 1711599186
Sale of CD Assets Shown As OTS 1711599186
Sale of CD Assets Shown As OTS 1711599186
Versus
Present:
For Appellant: Mr. Aalok Jagga, Mr. APS Maddan, Ms. Pallavi
Singh, Advocates.
For Respondents: Mr. Krishnendu Datta, Sr. Advocate with Mr.
Ashwini Sharma, Ms. Roopali Lakhotri, Mr. Ravi
Sehgal, Mr. Rajat Sinha, Mr. Asav Rajan, Ms.
Charu Trivedi, Mr. Arvind Nagar, Mr. Mayank
Biyani, Advocates for R-1.
Mr. V. Seshagiri with Ms. Prachi Jain, Advocates
for R-2 (Bank of India).
Mr. Harshit Agarwla and Mr. Asheesh Gupta,
Advocates for R-3.
ORDER
(Hybrid Mode)
23.02.2024: Heard learned counsel for the Appellant. This appeal has
Authority by which order the application being I.A. No.1748 of 2023 filed by
Resolution Plans were submitted which came for consideration before the
CoC. Appellant before us were the Promoter/Director, they did not file any
resolution plan in the CIRP. On 14.03.2023 they sent a proposal to the Bank
Cont’d…/
-2-
of India offering to make payment of Rs.64.5 crores which letter was in form
of OTS forwarded to the Bank. After the said OTS there has been
correspondence of the Appellant with the Bank with regard to the said OTS.
In the CoC meeting dated 29.06.2023, the Promoter who was present in the
management may give Resolution Plan. The said request was considered as
Item No.7, where the CoC informed that the concerned Financial Creditors at
their head office has to take a final decision on the Resolution Plan and OTS
proposal and they are still awaiting the final decision of their head office.
Subsequently, the meeting of the CoC was held on 27.07.2023, on which date
three Resolution Plans were considered and decision was taken to file an
application for extension of CIRP period and decision was also taken to vote
one of the Resolution Plan was approved and the application has been field
application.
4. Learned counsel for the Appellant Mr. Aalok Jagga submits that when
the OTS proposal submitted by the Appellant was under consideration and
was not yet finalised, in meeting dated 27.07.2023, there was no occasion to
between the Appellant and the Bank and when the proposal was under active
Appellant was well aware that the his OTS has not been accepted and he also
sent an email on 27.07.2023 at 23:48 hrs asking that the upfront amount of
Rs.1.30 Crores be refunded and on the next day the bank wrote to the
Appellant refunding the amount as well as informing that the Bank has not
6. Learned counsel for the Bank also submitted that the Bank did not
approve the OTS due to which reason the refund was asked for by the
Appellant.
“(A) (i) We make a final and last most offer of a total net
sum of Rs. 57.5 crores (Rupees Sixty Seven crores fifty
lacs) by way of OTS against sale of all assets of Drish
Shoes Ltd. land, buildings, all machines and all stocks.
Bank till 27.07.2023, when CoC proceeded to vote for Resolution Plan, the
on which reliance has been placed and the Appellant in this Appeal has
or
10. In so far as the prayer of the Appellant to publish fresh Form G, the
said request was considered in the CoC meeting and was not acceded to, Form
Appellant was to pay Rs.67.50 Crores against sale of all assets of Corporate
Debtor; land, buildings, all machines and all stocks. The proposal of the
Appellant to sell all land, buildings, and machines of the Corporate Debtor
cannot be treated as any proposal by the Promoter of OTS. The assets which
are under CIRP are assets of the Corporate Debtor that cannot be touched by
11. We do not find any ground to interfere with the impugned order by
which the application filed by the Appellant has been dismissed. The mere
fact that there has been correspondence of the Appellant with the Bank with
regard to consideration of OTS proposal does not make the proposal valid, as
noticed above. We, thus, are of the view that there is no ground to interfere
[Barun Mitra]
Member (Technical)
[Arun Baroka]
Member (Technical)
Archana/nn