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MAHARASHTRA SEAMLESS LIMITED vs. PADMANABHAN VENKATESH & ORS.

SCR Citation: [2020] 2 S.C.R. 1157
Year/Volume: 2020/ Volume 2
Date of Judgment: 22 January 2020
Petitioner: MAHARASHTRA SEAMLESS LIMITED
Disposal Nature: Appeals Allowed
Neutral Citation: 2020 INSC 76
Judgment Delivered by: Hon'ble Mr. Justice Aniruddha Bose
Respondent: PADMANABHAN VENKATESH & ORS.
Case Type: CIVIL APPEAL /4242/2019
Order/Judgment: Judgment
1. Headnote

Insolvency and Bankruptcy Code, 2016: s. 31 – Corporate Insolvency Resolution Process (CIRP) – Resolution plan which provided upfront payment of Rs. 477 crores was approved by the Adjudicating Authority – Appellate Tribunal directed the successful resolution applicant to increase the upfront payment amount of Rs. 477 crores to Rs. 597.54 crores i.e. equal to average liquidation value – Appeal to Supreme Court – Held: There is no provision in the Code or the Regulations which requires that bid of a resolution applicant has to match liquidation value – The Adjudicating Authority has not committed breach of provisions u/s. 31 – Appellate Authority ought not to have interfered with the order of the Adjudicating Authority in directing the successful resolution application to enhance their fund inflow upfront. s. 12-A – Applicability of – Held: The exit route prescribed u/s. 12-A is not applicable to resolution applicant – The procedure envisaged therein only applies to applicants invoking ss. 7, 9 and 10 of the Code.

2. Case referred
3. Act
  • Insolvency and Bankruptcy Code, 2016 (31 of 2016)
4. Keyword
  • Insolvency and Bankruptcy Code
5. Equivalent citation
    Citation(s) 2020 AIR 3779 = 2020 (11) SCC 467 = 2020 (11) Suppl. SCC 467 = 2020 (2) SCALE 393