Ajay Agarwal Vs. Shantanu T. Ray (RP)

NCLAT held that the Appellant, had not put in the best efforts in time if really the Appellant wanted to settle with the creditors of the Corporate Debtor. Appellant sat on the hedge till the proposal of the Resolution Applicant was on the verge of being approved and CIRP was in its last stage as the permissible period to avoid liquidation was ending on 07.03.2019. The last minute rush by sending in an e-mail in the evening at 07:08 p.m. on 28.02.2019 cannot be said to be bonafide offer or bonafide effort to take the benefits of Section 12A of IBC. The offer which was sent with e-mail as at Annexure-11, is apparently and admittedly an incomplete proposal and even makes a note that the detailed proposal would be submitted after getting principal approval of the creditors. This document cannot be said to be in compliance with Regulation 30A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulation 2016 read with Form FA of the Regulations. When the CoC was to meet on 01.03.2019 to consider revised Resolution Plan of Respondent No. 4 which was in compliance of the CoC proceeding dated 26.02.2019, sending of such e-mail as Annexure-A-11 at 7:08 p.m. on 28.02.2019 cannot be treated as a bonafide effort to take benefit of Section 12A of IBC. The Respondents are rightly arguing that it was only an effort to create obstruction in the process of Resolution so as to push the Corporate Debtor in process of liquidation. Again when Members of CoC are opposing such offer, sending back the matter to CoC will serve no useful purpose.