NOIDA SPECIAL ECONOMIC ZONE AUTHORITY versus MANISH AGARWAL & ORS.

NOIDA SPECIAL ECONOMIC ZONE AUTHORITY versus MANISH AGARWAL & ORS.

The Court upheld the NCLT/NCLAT approval of the Resolution Plan: the valuation (average of two valuers) was a factual determination not warranting interference; the Committee of Creditors' commercial decision fell within its commercial wisdom and was properly evaluated under Sections 30 and 31 IBC 2016 and relevant precedents; Section 238 IBC 2016 gives IBC overriding effect over the SEZ Act 2005 so Clause 10.9 cannot be challenged on that basis; the Resolution Plan had been implemented and dues disbursed, therefore the appellant's claim for the full admitted amount failed.

Parties
Appellant: NOIDA Special Economic Zone Authority; Respondent: Manish Agarwal & Ors.; Corporate Debtor: Shree Bhoomika International Limited; Resolution Applicant: M/s Commodities Trading
Jurisdiction
India
Judgment Date
05 November 2024
Procedural Posture
Civil Appeal Nos. 5918 5919 of 2022 / Appeal From NCLAT Judgment Dated 14.02.2022 Against NCLT Orders Dated 05.10.2020 and 27.11.2020
Outcome
Appeals dismissed
Legal Topics
Resolution Plan Approval Under Sections 30 and 31 IBC 2016, Valuation and Liquidation Value, Overriding Effect of IBC (section 238) Over Other Laws, Extinguishment of Statutory Dues on Approval of Resolution Plan, Commercial Wisdom of Committee of Creditors
Insolvency and Bankruptcy Law Special Economic Zone Law Resolution Plan Approval Under Sections 30 and 31 IBC 2016 Valuation and Liquidation Value Overriding Effect of IBC (section 238) Over Other Laws Extinguishment of Statutory Dues on Approval of Resolution Plan Commercial Wisdom of Committee of Creditors

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Parties

NOIDA Special Economic Zone Authority

Appellant

Manish Agarwal & Ors.

Respondent

Shree Bhoomika International Limited

Corporate Debtor

M/s Commodities Trading

Resolution Applicant

Procedural Posture

Civil Appeal Nos. 5918 5919 of 2022 / Appeal From NCLAT Judgment Dated 14.02.2022 Against NCLT Orders Dated 05.10.2020 and 27.11.2020

Legal Issues

  1. 1 Whether the admitted claim of the operational creditor should have been paid in full instead of INR 50 lakhs awarded under the approved resolution plan
  2. 2 Whether the valuation (fair value and liquidation value) was properly conducted and reviewable by courts
  3. 3 Whether Clause 10.9 of the Resolution Plan exempting NSEZ payments/transfer charges is impermissible vis-à-vis the SEZ Act 2005 given Section 238 of IBC 2016

Ratio Decidendi

The Court upheld the NCLT/NCLAT approval of the Resolution Plan: the valuation (average of two valuers) was a factual determination not warranting interference; the Committee of Creditors' commercial decision fell within its commercial wisdom and was properly evaluated under Sections 30 and 31 IBC 2016 and relevant precedents; Section 238 IBC 2016 gives IBC overriding effect over the SEZ Act 2005 so Clause 10.9 cannot be challenged on that basis; the Resolution Plan had been implemented and dues disbursed, therefore the appellant's claim for the full admitted amount failed.

Court Disposition

Appeals dismissed

Orders

  • Appeals dismissed
  • Orders dated 05.10.2020 and 27.11.2020 are not interfered with