, II (2019 )BC253 (SC ), 2019 (2 ) CCC 332 (SC ), [2019 ]148 CLA497 (SC ), [2019 ]213 CompCas356 (SC ), (2019 )2 CompLJ1 (SC ), 2019 (2 )CTC321 , 2019 INSC 148 , 2019 (3 )SCALE6 , (2019 )12 SCC150 , 2019 (8 ) SCJ 118 , [2019 ]152 SCL312 (SC ), [2019 ]3 SCR845 , ,MANU/SC/0189/2019A.M. Khanwilkar#Ajay Rastogi#2378SC3380Judgment/OrderAIR#BC#CCC#CLA#CompCas#CompLJ#CTC#INSC#MANU#SCALE#SCC#SCJ#SCL#SCRA.M. Khanwilkar,Banks#BanksSUPREME COURT OF INDIA2019-2-14692415,692416,27201,692391,692446,692447,692411,790980,692388,692390,692395,22279,26277,773759,692435,692402,692385,692412,692393,692409,692439,692434,27209,692576,692584,692413,790782,692403,692408,26281,17067 -->

MANU/SC/0189/2019

True Court CopyTM English

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 10673, 10719, 10971 and 29181 of 2018

Decided On: 05.02.2019

Appellants: K. Sashidhar Vs. Respondent: Indian Overseas Bank and Ors.

Hon'ble Judges/Coram:
A.M. Khanwilkar and Ajay Rastogi

JUDGMENT

A.M. Khanwilkar, J.

1. Leave granted in SLP (C) No. 29181 of 2018.

2. All appeals were taken up for hearing at the notice stage with the consent of the contesting Respondents.

3. These appeals have arisen from the common judgment and order of the National Company Law Appellate Tribunal (for short "NCLAT"), New Delhi, dated 6th September, 2018, rendered in appeals filed in relation to the insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016 (for short "I & B Code") concerning Kamineni Steel & Power India Pvt. Ltd. (for short "KS & PIPL"), having its registered office at Hyderabad, Telangana and Innoventive Industries Ltd. (for short "IIL") having its registered office at Pune, Maharashtra.

4. The NCLAT affirmed the order passed by the National Company Law Tribunal, Mumbai Bench (for short "NCLT Mumbai") recording rejection of the resolution plan concerning IIL and directing initiation of liquidation process under Chapter III of Part II of the I & B Code. As regards KS & PIPL, the NCLAT reversed the decision of the National Company Law Tribunal, Hyderabad (for short "NCLT Hyderabad") which had approved its resolution plan and instead remanded the proceedings to NCLT Hyderabad for initiation of liquidation process in terms of Section 33 and 34 of the I & B Code.

5. The NCLAT held that as, in both the cases, the resolution plan did not garner support of not less than 75% of voting share of the financial creditors constituting the Committee of Creditors (for short "CoC") the same stood rejected and thereby warranted initiation of liquidation process of the concerned corporate debtor, namely, KS & PIPL and IIL.

6. For considering the grounds of challenge in the respective appeals, we deem it appropriate to advert to the relevant facts concerning the respective corporate debtor.

7. KS & PIPL was incorporated as a private limited company on 20th October, 2008. Its steel division commenced operation on 30th March, 2013. The company was functional till the Financial Year 2014-15. However, it could not continue beyond this period due to deficient working capital and various other factors including financial cri........