Balaji Paper & Newsprint Pvt. Ltd.

The valuation of Corporate Debtor cannot be challenged by anyone when Resolution Plan has already been approved by NCLT | If CoC disagree with Valuation Report, it would direct for fresh valuation, where CoC agrees, the decision of CoC is final and there is no scope for judicial review – Jai Kishore Gupta Vs. Balaji Paper and Newsprint Pvt. Ltd. and Anr. – NCLT Kolkata Bench

Hon’ble NCLT Kolkata Bench held that:

(i) The valuation of the Corporate Debtor cannot be challenged at this stage by anyone when the resolution plan has already been approved by us.
(ii) Question of valuation carried out by two independent Registered Valuers duly registered with IBBI cannot be challenged by the Appellants as the same being a question of fact is normally not interfered by Courts.
(iii) If the CoC disagree, it would direct for fresh valuation. Where the CoC agrees, the decision of the CoC in this regard is final and there is no scope for judicial review.
(iv) It is the duty of the Financial Creditors and the Resolution Professional, to invoke personal guarantees as well as corporate guarantees furnished for the loans and advances taken by the Corporate Debtor for the purpose of maximisation of wealth of the Corporate Debtor.

The valuation of Corporate Debtor cannot be challenged by anyone when Resolution Plan has already been approved by NCLT | If CoC disagree with Valuation Report, it would direct for fresh valuation, where CoC agrees, the decision of CoC is final and there is no scope for judicial review – Jai Kishore Gupta Vs. Balaji Paper and Newsprint Pvt. Ltd. and Anr. – NCLT Kolkata Bench Read Post »

Whether, a Promoter and/or Director of a Suspended Board of the Corporate Debtor, which is a registered MSME with UDYAM shall be eligible to submit the EOI or Resolution Plan for the Corporate Debtor in its individual capacity? | Eligibility of the applicant to have an MSME Registration Certificate with UDYAM cannot be adjudicated upon by NCLT – Anil Agarwal Vs. Bijay Murmuria, RP in The Matter of Balaji Paper & Newsprint Pvt. Ltd. – NCLT Kolkata Bench

In this case, The RP has rejected the Applicant’s EOI on the ground that EOI is submitted in the name of Corporate Debtor not in the name of Applicant and the Corporate Debtor is not a Medium Enterprise. The RP has alleged that the Corporate Debtor is a “Medium Enterprise” under the provision of MSMED Act, 2007 is false and wrongly declared. The MSME registered status, indicates that the Corporate Debtor (Balaji Paper and Newsprint Pvt Ltd) is a “Medium Enterprise”.
NCLT Kolkata Bench held that this Tribunal is not in a position to make a roving and fishing enquiry to discern whether the Corporate Debtor is falsely registered as an MSME by misleading the concerned authority. It is observed that the MSME status was awarded by the appropriate conferring authority on July 10, 2020 which is way before the initiation of CIR Process by this Tribunal. Hence, we refrain from entering into the controversy in regard to the eligibility of the Corporate Debtor to be conferred with a MSME Status, as the same is not within our jurisdiction. We hold that eligibility of the applicant to have an MSME Registration Certificate with UDYAM cannot be adjudicated upon by this Tribunal.

Whether, a Promoter and/or Director of a Suspended Board of the Corporate Debtor, which is a registered MSME with UDYAM shall be eligible to submit the EOI or Resolution Plan for the Corporate Debtor in its individual capacity? | Eligibility of the applicant to have an MSME Registration Certificate with UDYAM cannot be adjudicated upon by NCLT – Anil Agarwal Vs. Bijay Murmuria, RP in The Matter of Balaji Paper & Newsprint Pvt. Ltd. – NCLT Kolkata Bench Read Post »

Issuance of demand notice by advocate cannot be a ground to reject the application- Shaw Traders Vs. Balaji Paper & Newsprint Pvt. Ltd. – NCLAT

In so far as issuance of demand notice by advocate is concerned, the case being covered by decision of the Hon’ble Supreme Court in ‘Macquarie Bank Limited’ Vs ‘Shilpi Cable Technologies Ltd.’ in Civil Appeals No. 15135, 15481 and 15447 of 2017 on 15th December, 2017, cannot be a ground to reject the application.

Issuance of demand notice by advocate cannot be a ground to reject the application- Shaw Traders Vs. Balaji Paper & Newsprint Pvt. Ltd. – NCLAT Read Post »

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