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Phoenix Arc Private Limited vs Spade Financial Services Limited on 1 February, 2021

12. The case of the Appellant is that Kalpatru Advisory Services Pvt. Ltd. (KASPL) is a voting member of the Committee of Creditors. His submission is that KASPL holds 16% shareholding of the Corporate Debtor and Mr. Pratik Jayesh Vira was Director of Corporate Debtor from 01.01.2010 to 19.02.2019 and is also Director of KASPL. Learned counsel for the Appellant has relied on Section 5(24)(d) to submit that KASPL is a related party. According to own case of the Appellant, Mr. Pratik Jayesh Vira who was Director of the Corporate Debtor as well as KASPL resigned on 19.02.2019. Learned counsel for the Appellant has relied on judgment of Hon'ble Supreme Court in "Phoenix ARC vs. Spade Financial Services, (2021) 3 SCC 475". However, there is no material on record that resignation of Respondent No.3 was with intend to be member of the Committee of Creditors. There being no material or pleading to come to the conclusion that KASPL still continues to be related party by virtue of Section 5(24)(d) whereas after 19.02.2019, Mr. Pratik Jayesh Vira does not continue as Director of the Corporate Debtor and CIRP against the Corporate Debtor commenced on 11.08.2020, more than a year after such resignation. With regard to 16% shareholding of KASPL, learned counsel for the Respondent No.3 has submitted that to attract Section 5(24)(j), the KASPL had to control more than Company Appeal (AT) Insolvency No. 1162 of 2023, 1178 of 2023 and 1179 of 2023 -17- 20% of voting rights in the corporate debtor on account of ownership or a voting agreement. It has only 16% shareholding in the Corporate Debtor, hence, cannot be held as related party as per Section 5(24)(j). The submission of the Appellant objecting participation of KASPL on the basis of its shareholding which in view of the definition clause 5(24)(j) does not fulfils it to be related party, hence, participation of KASPL in voting cannot be faulted. As noted above, transfer of shareholding in favour of the Vira Group could not materialise.
Supreme Court of India Cites 32 - Cited by 49 - D Y Chandrachud - Full Document

Amit Goel vs Ms. Piyush Shelters India Pvt.Ltd. & Ors on 18 January, 2022

18. Learned counsel for the Appellant has placed reliance on judgment of this Tribunal in "Company Appeal (AT) (Ins.) No. 700 of 2021, Amit Goel vs. Piyush Shelters India Pvt. Ltd." to support his submission that there cannot be differentiation in treatment of homebuyers. In the case of Amit Goel Resolution Plan was approved which provided for allotment of unit to those homebuyers whose claim was filed within time and admitted and with regard to those homebuyers who did not file their claim within time were proposed to get 10% of their booked amount after verification. The Resolution Plan was challenged on various grounds. The ground to challenge the Resolution Plan has been noticed in Para 6 of the judgment, which is to the following effect:
National Company Law Appellate Tribunal Cites 12 - Cited by 4 - Full Document

Vinayak Road Carriers vs State Bank Of India & Ors on 4 July, 2019

"144. What is important to note is that when one reads the abovementioned judgment, it is a majority of 66% of the Committee of Creditors who has exercised the discretion vested in it under the Code in this particular manner, which has then correctly not been disturbed by the NCLT and NCLAT. Far from helping Shri Sibal's client, the principle that is applied in such a case is that ultimately it is the commercial wisdom of the requisite majority of the Committee of Creditors that must prevail on the facts of any given case, which would include distribution in the manner suggested in Orissa Company Appeal (AT) Insolvency No. 1162 of 2023, 1178 of 2023 and 1179 of 2023 -34- Manganese (supra).
National Company Law Appellate Tribunal Cites 29 - Cited by 42 - Full Document
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