MOHAMMED ENTERPRISES (TANZANIA) LTD Vs. FAROOQ ALI KHAN

JUDGEMENT

(1.) Leave Granted.

(2.) These appeals under Article 136 of the Constitution are against the judgment of the High Court of Karnataka exercising power of judicial review(In Writ Petition No. 483 of 2023 (GM-RES) dtd. 22/4/2024.) interdicting Corporate Insolvency Process culminating in the acceptance of a resolution plan by the Committee of Creditors in minutes of meeting dtd. 11/2/2020. In this batch of matters, there are three appeals, one by the successful resolution applicant METL, the other by the Bank comprising the Committee of Creditors, and the third appeal by the Resolution Professional appointed by the adjudicating authority to conduct CIRP against Associate Decor Ltd ("Corporate Debtor").

(3.) The short facts are that the Corporate Insolvency Resolution Proceedings were admitted against the corporate debtor at the instance of Oriental Bank of Commerce(Merged with Punjab National Bank in 2020) (a financial creditor) on 26/10/2018. It is submitted by Dr Abhishek Manu Singhvi, Ld. Senior Advocate appearing on behalf of the successful resolution applicant that upon the resolution professional issuing the Information Memorandum under Sec. 29 of the Code on 28/11/2018, his client submitted his expression of interest. It is submitted that at the 16th, 17th and 18th meeting of the Committee of Creditors, resolution plans were discussed and deliberated. Further, even at the first adjourned meeting of the 19th COC, resolution plans were reviewed, and the appellant was asked to incorporate certain items, and the meeting was adjourned to 11/2/2020. It is submitted that one Mr. Sachin Misal, another director of the corporate debtor representing the suspended director, Mohd. Farouk Darvesh was present, and he confirmed that "they have no objection to the plans or to the process that was followed." We may mention at this very stage that this fact is opposed by Mr. Shyam Divan, Ld. Senior Counsel representing the suspended director of the corporate debtor. Be that as it may, the resolution professional is said to have issued notice to the suspended directors of the corporate debtor on 11/2/2020, including respondent no.1, that the meeting will be held at 3.00 pm.