w w w . L a w y e r S e r v i c e s . i n



Mahalaxmi Spinning & Weaving Mills Pvt. Ltd., Worli Mumbai v/s Maruti Cotex Ltd. Through Resolution Professional Sujata Chattopadhyay, Kolhapur & Others


Company & Directors' Information:- MARUTI COTEX LIMITED [Active] CIN = U17115PN2006PLC022143

Company & Directors' Information:- K K P SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1993PTC004731

Company & Directors' Information:- N R U SPINNING MILLS LIMITED [Active] CIN = U17111TZ1994PLC005591

Company & Directors' Information:- K D R SPINNING AND WEAVING MILLS LIMITED [Active] CIN = U17110DL1981PLC012864

Company & Directors' Information:- R G SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2004PTC011274

Company & Directors' Information:- J P P MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2003PTC010491

Company & Directors' Information:- P K P N SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1981PTC001034

Company & Directors' Information:- MAHALAXMI SPINNING & WEAVING MILLS PRIVATE LIMITED [Active] CIN = U17291MH2012PTC228668

Company & Directors' Information:- K R V SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1990PTC002716

Company & Directors' Information:- V R SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1979PTC000836

Company & Directors' Information:- H N COTEX PRIVATE LIMITED [Active] CIN = U17120GJ2013PTC075910

Company & Directors' Information:- N B COTEX PRIVATE LIMITED [Active] CIN = U17200MH2011PTC219248

Company & Directors' Information:- K A S SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1990PTC002955

Company & Directors' Information:- V M D MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC004822

Company & Directors' Information:- P S G SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC005234

Company & Directors' Information:- A R C MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC004845

Company & Directors' Information:- C P SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC005257

Company & Directors' Information:- S K COTEX LIMITED [Active] CIN = U17231HR1994PLC032315

Company & Directors' Information:- S AND Y MILLS LIMITED [Not available for efiling] CIN = U17111TZ1994PLC005460

Company & Directors' Information:- D C MILLS PRIVATE LIMITED [Active] CIN = U25199KL1996PTC009988

Company & Directors' Information:- N S C SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2004PTC011093

Company & Directors' Information:- R A MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2006PTC013248

Company & Directors' Information:- K T SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1990PTC002678

Company & Directors' Information:- J G SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1991PTC011033

Company & Directors' Information:- K. S. COTEX (INDIA) PRIVATE LIMITED [Active] CIN = U17300MP2011PTC025847

Company & Directors' Information:- S K WEAVING PRIVATE LIMITED [Active] CIN = U17115DL2004PTC129457

Company & Directors' Information:- MAHALAXMI INDIA PRIVATE LIMITED [Active] CIN = U51909AS2000PTC006033

Company & Directors' Information:- MARUTI MILLS PRIVATE LIMITED [Active] CIN = U17117RJ1994PTC008624

Company & Directors' Information:- S P SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1979PTC000862

Company & Directors' Information:- S K WEAVING PRIVATE LIMITED [Not available for efiling] CIN = U17119GJ1998PTC034952

Company & Directors' Information:- V. T. COTEX PRIVATE LIMITED [Active] CIN = U17120GJ2012PTC071478

Company & Directors' Information:- K. M. COTEX PRIVATE LIMITED [Active] CIN = U17111MP2007PTC020127

Company & Directors' Information:- J G SPINNING MILLS PRIVATE LIMITED [Not available for efiling] CIN = U18101WB1991PTC050845

Company & Directors' Information:- M B S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC005005

Company & Directors' Information:- R D SPINNING MILLS LIMITED [Active] CIN = U17115PB1989PLC009763

Company & Directors' Information:- J M MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2006PTC013113

Company & Directors' Information:- T K S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1988PTC002117

Company & Directors' Information:- R K WEAVING PRIVATE LIMITED [Active] CIN = U01711TZ2002PTC010192

Company & Directors' Information:- K P M SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1995PTC006011

Company & Directors' Information:- M T A MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1989PTC003048

Company & Directors' Information:- J. C. SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17121TG2011PTC073799

Company & Directors' Information:- P A MILLS INDIA LTD. [Not available for efiling] CIN = U17111TN1990PLC019762

Company & Directors' Information:- R R R SPINNING MILLS INDIA PRIVATE LIMITED [Active] CIN = U17111TZ1990PTC002745

Company & Directors' Information:- K N M MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1990PTC002702

Company & Directors' Information:- G P M SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17110PB2005PTC028070

Company & Directors' Information:- P K WEAVING MILLS PRIVATE LIMITED [Active] CIN = U51311RJ2000PTC016748

Company & Directors' Information:- R R SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1980PTC000984

Company & Directors' Information:- B B S M SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1990PTC002914

Company & Directors' Information:- P A SPINNING MILLS PVT. LTD. [Not available for efiling] CIN = U17111TN1989PTC018288

Company & Directors' Information:- V M MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2005PTC011763

Company & Directors' Information:- M K G SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17115TZ1990PTC002952

Company & Directors' Information:- MARUTI SPINNING MILLS LTD. [Active] CIN = U99999MH1994PTC078760

Company & Directors' Information:- D K COTEX PRIVATE LIMITED [Strike Off] CIN = U17110MH2005PTC157107

Company & Directors' Information:- M P SPINNING AND WEAVING MILLS PRIVATE LIMITED [Active] CIN = U17120MH1974PTC017191

Company & Directors' Information:- V G WEAVING PRIVATE LIMITED [Active] CIN = U74899DL1994PTC063738

Company & Directors' Information:- M S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17219PB1995PTC017064

Company & Directors' Information:- N G SPINNING MILLS PVT LTD [Active] CIN = U21010GJ1981PTC004505

Company & Directors' Information:- A A K. SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1995PTC005766

Company & Directors' Information:- S. S. MILLS PRIVATE LIMITED [Active] CIN = U24231GJ1988PTC010885

Company & Directors' Information:- G M MILLS PRIVATE LIMITED [Active] CIN = U51900MH1999PTC122189

Company & Directors' Information:- S B COTEX PRIVATE LIMITED [Active] CIN = U17300MP2009PTC022644

Company & Directors' Information:- G P G SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TN1987PTC014844

Company & Directors' Information:- P P WEAVING MILLS PRIVATE LIMITED [Strike Off] CIN = U17115TZ2003PTC010602

Company & Directors' Information:- E A P SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ2005PTC011782

Company & Directors' Information:- N S K SPINNING MILLS PRIVATE LIMITED [Under Process of Striking Off] CIN = U17111TZ1994PTC004816

Company & Directors' Information:- R B MILLS PVT LTD [Active] CIN = U15141AS1949PTC001939

Company & Directors' Information:- R P K SPINNING AND WEAVING MILLS PVT LTD [Strike Off] CIN = U17119CH1987PTC007371

Company & Directors' Information:- MARUTI WEAVING PVT. LTD. [Strike Off] CIN = U18100TG1990PTC011150

Company & Directors' Information:- R. A. SPINNING MILLS PVT LTD [Strike Off] CIN = U17115PB1988PTC008852

Company & Directors' Information:- K P K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1961PTC000431

Company & Directors' Information:- D S R WEAVING MILLS PRIVATE LIMITED [Strike Off] CIN = U29262TZ1988PTC002255

Company & Directors' Information:- H K SPINNING MILLS PVT LTD [Active] CIN = U17111PB1986PTC006672

Company & Directors' Information:- R K COTEX PRIVATE LIMITED [Active] CIN = U17200DL2010PTC202564

Company & Directors' Information:- A V S SPINNING MILLS INDIA PRIVATE LIMITED [Strike Off] CIN = U17111TZ2004PTC011275

Company & Directors' Information:- K S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17299HR2021PTC092277

Company & Directors' Information:- O P K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17120DL1988PTC032165

Company & Directors' Information:- P N M SPINNING MILLS PVT LTD [Strike Off] CIN = U17111TN1981PTC008870

Company & Directors' Information:- J K K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1981PTC001085

Company & Directors' Information:- R K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17100KA1995PTC018864

Company & Directors' Information:- B T MILLS PRIVATE LIMITED [Active] CIN = U18101MH1997PTC109479

Company & Directors' Information:- T R MILLS PRIVATE LIMITED [Active] CIN = U17111KA1954PTC000799

Company & Directors' Information:- MAHALAXMI COTEX PRIVATE LIMITED [Active] CIN = U70101MH1988PTC050134

Company & Directors' Information:- MAHALAXMI PRIVATE LIMITED [Strike Off] CIN = U71101UP1946PTC001531

Company & Directors' Information:- J K MILLS LTD [Strike Off] CIN = U17200WB1946PLC013603

Company & Directors' Information:- G M MILLS PRIVATE LIMITED [Amalgamated] CIN = U18101MH2003PTC138487

Company & Directors' Information:- J K R SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1995PTC006781

Company & Directors' Information:- V K K SPINNING & WEAVING MILLS PRIVATE LIMITED [Strike Off] CIN = U18101TN1979PTC007760

Company & Directors' Information:- N H SPINNING AND WEAVING PVT LTD [Strike Off] CIN = U17119PB1995PTC015906

Company & Directors' Information:- MAHALAXMI COMPANY PRIVATE LIMITED [Active] CIN = U99999MH1945PTC004455

Company & Directors' Information:- K R WEAVING MILLS PRIVATE LIMITED [Active] CIN = U17291UP2015PTC068120

Company & Directors' Information:- SUJATA PRIVATE LIMITED [Strike Off] CIN = U65992DL1960PTC003365

Company & Directors' Information:- P. D. R. SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17112AP2006PTC052124

Company & Directors' Information:- INDIA SPINNING AND WEAVING COMPANY LIMITED [Dissolved] CIN = U99999MH1919PTC000580

Company & Directors' Information:- MAHALAXMI MILLS LIMITED [Not available for efiling] CIN = U99999MH1951PLC010112

Company & Directors' Information:- MARUTI LTD. [Strike Off] CIN = U99999DL2000PTC005660

    Company Appeal(AT) (Insolvency) No. 317 of 2020

    Decided On, 24 February 2020

    At, National Company Law Appellate Tribunal

    By, THE HONOURABLE MR. A.I.S. CHEEMA
    By, JUDICIAL MEMBER
    By, THE HONOURABLE MR. ANANT BIJAY SINGH
    By, JUDICIAL MEMBER & THE HONOURABLE MR. KANTHI NARAHARI
    By, TECHNICAL MEMBER

    For the Appellants: Sumesh Dhawan, Jaskin Dhama, Advocates. For the Respondents: R1, Abhijeet Sinha, Naveen Kumar, R2 & R3, Rahul Chitwis, Aaditya Pandey, R4, Abhishek Anand, Honey Satpal, Advocates.



Judgment Text


A.I.S. Cheema Judicial Member

Heard Advocate Mr. Sumesh Dhawan for the Appellant, Advocate Mr. Abhijeet Sinha for Respondent No. 1-Resolution Professional, Advocate Mr. Rahul Chitwis, who appears for State of Maharashtra-Respondent Nos. 2 & 3 and Advocate Mr. Abhishek Anand for Respondent No. 4.

2. This Appeal arises out of order passed in M.A. No. 50 of 2020 in C.P.(IB) 241/(MB)/2018 (Annexure-1) passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Mumbai. It is a short order which reads as under:

"ORDER

138. MA 50/2020 in C.P.(IB) 241/(MB)/2018

This is an application seeking to retrain RI and R2 from taking any action against the RP and also seeking to restrain R4 from communicating, publishing with the prospective Resolution applicant without prior permission of this Tribunal and also from creating any hindrance in the process of CIRP.

The Counsel for the R4 is present in the court along-with other Counsels. This is a case where a particular property was auctioned prior to CIRP proceedings under SARFAESI by R3 who is the secured creditor and the cost of the property was valued at Rs. 100 crores and R4 evinced interest in purchasing the same and has paid an amount of Rs. 5 crores as EMD. Subsequently when the bid was finalized, he was asked to pay the balance amount. The R4 then backed out from paying the further payments, for which reason R3 forfeited the EMD amount.

Under the said circumstances, the R4 approached Debt Recovery Tribunal, and made an application in which he clearly stated that forfeiture is barred in law and asked for the refund of the amount. The said application is pending before DRT. The stand of the R4 is that he is not proceeding further to purchase the property but only seeking refund from R3. While that being the background of the case, after the petition has been admitted, the IRP has been appointed, and taken over the charge of the entire assets of the company, the resolution plan is being worked out, this R4 has lodged a police complaint against R3 and it is understood from the communication and also from the arguments that the police are also going beyond their brief and threatening RP from proceeding further with CIRP.

Under Section 233of IBC, 2016, the RP who is the officer of the court is absolutely immune from any actions taken in good faith and there is no locus standi on the part of the R4 to directly or indirectly influence the police, so as to threaten the RP in any manner. Apart from that in the open court, the Counsel has admitted that he has sought for refund of the amount. By any stretch of imagination, can it be presumed that R4 has a claim of any nature against the property and the manner in which he conducted himself by exerting influence on the police to proceed against the secured creditor and also against RP should be taken very seriously and we hereby direct the very same Police authorities, Station House Officer with whom the R4 has lodged a complaint to take strenuous action against R4 for maliciously proceeding against the RP and to disturb the CIRP process which amounts to Contempt of Court.

However, R4 seeks to file reply for which he is entitled to. But in the meanwhile, R4 is restrained, in-juncted in any manner from proceeding against RP or obstructing the proceedings of CIRP and to have any sought of communication with the prospective Resolution Applicant. If this court comes to know that R4 is indulged in such an un-warranted communication or any action on his part, this court will view very seriously. R4 has no recourse against the RP or the assets of the Corporate Debtor. Hence his order.

List the matter on 3.2.2020.

(Emphasis supplied - for reasons to follow)

3. Brief facts stated by the learned Counsel for the Appellant may be referred. It is stated that Respondent No. 4 - JM Financial Asset Reconstruction Company Pvt. Ltd., the assignee of loan of consortium of five banks, had initiated the proceeding under The Secularization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (In short 'SARFAESI' Act) against the Corporate Debtor and had initiated action to e-auction property of the Corporate Debtor. In the process the bid of the Appellant was accepted and he had paid Rs. 5 lakhs earlier at the time of Application and later on paid Earnest Money Deposit (in short 'EMD') of Rs. 5 Crores. It is stated that thereafter between the Appellant and Respondent No. 4 differences arose with regard to the description of the property and in the process, Respondent No. 4 forfeited the amount deposited by the Appellant. It is stated that this led the dispute before the Debt Recovery Tribunal (in short 'DRT') which is still pending. It is stated that thereafter Corporate Insolvency Resolution Process (in short 'CIRP') was initiated.

4. It is stated by the learned Counsel for the Appellant that before CIRP started, the Appellant had already filed Complaint against Respondent No. 4 on 04.06.2018 (Annexure-2). Learned Counsel says that the said Complaint is under investigation.

5. Learned Counsel for the Respondent No. 4 states that there is a Writ Petition pending for quashing the said Complaint.

6. Counsel for Appellant states that Appellant had not asserted any pressure on Police to take action against Resolution Professional. Counsel for Respondent Nos. 2 & 3 states that Police cannot and will not interfere in CIRP.

7. There is no dispute between the respective Counsel relating to the fact that e-auction proceeding initiated has not culminated into transfer of title of the property of the Corporate Debtor. The learned Counsel for the Appellant states that the Appellant now does not have grievances against the last paragraph of the impugned order but is aggrieved by the last-but-one-paragraph of the impugned order against Appellant (Respondent No. 4 before Adjudicating Authority) where it is recorded:

"...... we hereby direct the very same Police authorities, Station House Officer with whom the R4 has lodged a complaint to take strenuous action against R4 for maliciously proceeding against the RP and to disturb the CIRP process which amounts to Contempt of Court."

..

8. Learned Counsel for the Appellant states that earlier the Appellant had sent communication as seen at Exhibit-G (at pages 179 & 180) of M.A. No. 50 of 2020. However, it is stated, the Appellant had no intention to interfere in the CIRP and will not question title of the Corporate Debtor to the concerned property. Learned Counsel states that the Appellant only wants to continue the proceeding which the Appellant had filed with the Police and which is pending before DRT. Learned Counsel states that he has taken special instructions from the Appellant and states that "The Appellant will not interfere, in any manner, with the CIRP proceeding and wil

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l not claim the property of the Corporate Debtor to be encumbered." We record the statement of the learned Counsel for the Appellant and in view of the same, we delete the portion from Impugned Order, i.e.: - "...... we hereby direct the very same Police authorities, Station House Officer with whom the R4 has lodged a complaint to take strenuous action against R4 for maliciously proceeding against the RP and to disturb the CIRP process which amounts to Contempt of Court." 9. With this modification the M.A. No. 50/2020 should not survive for further Orders before Adjudicating Authority. However, Adjudicating Authority may pass suitable orders, in the light of above undertaking and these orders. The Appeal is disposed of accordingly. No costs.
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