SC paves way for Rekha Jhunjhunwala-led consortium to acquire Ricoh India
The Supreme Court of India has reinstated the resolution application submitted by the consortium of Kalpraj Dharamshi and Rekha Jhunjhunwala for Ricoh India.
The Supreme Court allowed an appeal filed by the successful resolution applicant against a National Company Law Appellant Tribunal (NCLAT) order dated 5 August 2020 setting aside the approval of the resolution plan on the grounds that the plan was submitted after the expiry of the deadline for submission of the bid.
The apex court of the country said that the NCLAT acted in excess of jurisdiction in interfering with the conscious commercial decision of the committee of creditors (CoC).
The SC noted that the decision of CoC (to give a go-ahead to the resolution plan submitted by the consortium of Jhunjhunwala and Dharamshi) was taken by a thumping majority of 84.36%.
“The only creditor voted in favour of Kotak Investment Advisors Ltd (KIAL) is Kotak Bank, which is a holding company of KIAL, having voting rights of 0.97%. We are of the considered view, that in view of the paramount importance given to the decision of CoC, which is to be taken on the basis of commercial wisdom, NCLAT was not correct in law in interfering with the commercial decision taken by CoC by a thumping majority of 84.36%,” said the apex court.
KIAL was one of the resolution applicants, whose resolution plan was rejected by the CoC. KIAL had moved NCLAT against Mumbai NCLT’s decision (on 28 November 2019) to approve the resolution plan (for Richoh India) of the consortium of Kalpraj Dharamshi and Rekha Jhunjhunwala.
The court also took a considered view of the fact that after the resolution plan for Ricoh India was approved by NCLT on 28 November 2019, the resolution applicant had begun implementing the resolution plan.
“NCLAT had heard the appeals on 27 February 2020 and reserved the same for orders. It is not in dispute, that there was no stay granted by NCLAT, while reserving the matters for orders. After a gap of five months and eight days, NCLAT passed the final order on 5 August 2020. It could thus be seen, that for a long period, there was no restraint on implementation of the resolution plan, which was duly approved by NCLT,” said the court.
The Corporate Debtor Ricoh India Ltd. had filed a Petition by invoking the Provisions of Section 10 of The Insolvency & Bankruptcy Code in January 2018. The Mumbai NCLT admitted the petition In May 2018.
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