National Company Law Tribunal, New Delhi: In the recent order passed by a bench comprising of M.M. Kumar, CJ and Ms. Deepa Krishan, Technical Member held that the resolution plan proposed by JFC Finance (India) Limited complies with all the requirements of Insolvency and Bankruptcy Code, 2016 (I&B Code), IBBI regulations and other provisions of statute or subordinate legislation and hence deserves to be approved.
The crux of the case being that the company JFC Finance (India) Limited had proposed a resolution plan with the main points being –
– Shares held by the existing shareholder of Hotel Gaudavan Private Limited shall stand transferred to JFC Finance (India) Limited, for a consideration of Rs 1 per share.
– An amount of Rs 17.38 lacs to be deposited into a separate account for the transfer of the said shares to JFC Finance
The Resolution Professional affirmed that the resolution applicant has complied with all the requirements and hence the resolution plan so proposed by the applicant deserves to be approved.
The management however contested that they should be given a chance to prepare the resolution plan but the tribunal denied them the privilege on the grounds that several chances were given to them, but the management failed to adhere to the Tribunals’ directions and also on the further grounds that their accounts were declared as Non Performing Asset (NPA) as early as 28.06.2010, hence the submission made by the management has no merit.
Furthermore, the Tribunal granted the resolution plan of JFC Finance (India) Ltd. with directions for compliance (to be complied with within two weeks), and further ordered that if the management who has already violated various orders of this Tribunal fails to cooperate by surrendering the assets as per the directions, then the Director General of Police, State of Rajasthan shall ensure that police help is granted to ensure compliance with the Tribunal’s order. [Alchemist Asset Reconstruction Co. Ltd (AARC) v. Hotel Gaudavan Pvt. Ltd, (IB)-23(PB)/2017, decided on 13.12.2017]