When no Scheme could be submitted or approved under Section 230, there was no option left to the Adjudicating Authority except to direct the Liquidator to proceed further in the liquidation process – Jai Vardhman Khaniz Pvt. Ltd. & Ors. Vs. Hindustan Paper Corporation Through Liquidator & Ors – NCLAT New Delhi
When no Scheme could be submitted or approved under Section 230, there was no option left to the Adjudicating Authority except to direct the Liquidator to proceed further in the liquidation process. The Appellate Authority while considering the Appeal filed against the order of the Liquidation has clearly stated that the Appellate Authority is not inclined to interfere with the impugned order dated 02.05.2019 which observation was made in Company Appeal (AT) (Ins.) No. 585 of 2019 as noted in paragraph 27 of the Adjudicating Authority order. The mere fact that the Appellants in this Appeal claims that they are interested to offer a higher amount to one which the Corporate Debtor has been auctioned cannot be a ground to entertain this Appeal or interfere with the impugned order. Everyone including the Appellants had ample opportunity before the Adjudicating Authority when proceedings were on to submit appropriate Scheme Under Section 230. As noted above, a Scheme under Section 230 was submitted by ‘Mahalaxmi Continental Limited’ an Operational Creditor which was a consortium of Operational Creditors including some of the Appellants also. The Scheme was subsequently withdrew by the Applicant. It is amply clear that there is no Scheme under Section 230 which may obviate proceeding in the liquidation. We thus, are of the view that no grounds have been made out to interfere with the impugned orders. The Appeal is dismissed.
