Insolvency And Bankruptcy Code - Unbiased Resolution Professional (RP)

Insolvency And Bankruptcy Code - Unbiased Resolution Professional (RP) :Indore-based Ruchi Soya, which is facing insolvency proceedings, has a debt of about Rs 10,000 crores. On 2 December 2017, the Mumbai bench of NCLT had admitted the company for insolvency resolution process under the Insolvency and Bankruptcy Code. As per Section 12 of the code, If the Adjudicating Authority is satisfied that the subject matter of the case is such that corporate insolvency resolution process cannot be completed within one hundred and eighty days, it may by order extend the duration of such process beyond one hundred and eighty days by such further period as it thinks fit, but not exceeding ninety days After hearing the plea, the division bench of the tribunal, presided over by B.S.V. Prakash Kumar and Ravikumar Duraisamy allowed the RP to take another 90 days to come up with the resolution plan. Baba Ramdevs Patanjali Ayurved Ltd; Godrej Agrovet Ltd; Kolkata-based Emami Agrotech, an edible oil and biodiesel arm of Emami Group; and Adani Wilmar Ltd are in the fray to acquire the assets of the company. Adani has emerged as the highest bidder (H1) with an offer of about Rs 6,000 crore, while Patanjalis bid was worth around Rs 5,700 crore. After Adani Wilmar emerged as H1, Patanjali Ayurved sought clarification from the RP (Resolution Professional) of Ruchi Soya related to eligibility of Adani Group to participate in the bidding process. It also sought to know the parameters adopted by the RP to declare Adani Wilmar as the highest bidder. The Haridwar-based firm has also questioned the appointment of Cyril Amarchand Mangaldas as the RPs legal advisor as the said law firm was already advising Adani Group Some instances which would give rise to doubts as to presence of bias: (Same as Arbitration and conciliation Act, 1996) RP (Resolution Professional) is an employee, consultant, advisor or has any other past or present business relationship with a party, the RP currently represents the lawyer or law firm acting as counsel for one of the parties the RP has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties the RP is a legal representative of an entity that is a party in the insolvency process Last week, RP (Resolution Professional) sought 8-10 days time to reply to the clarification sought by Patanjali. Patanjali was asked to submit a revised bid by June 16 to match or better the highest offer of Rs 6,000 crore by Adani Wilmar under the Swiss Challenge system adopted by the RP and the committee of creditors. Describing the Swiss challenge, Jaitley said, Swiss challenge method is a new process of giving contracts...Any person with credentials can submit a development proposal to the government. That proposal will be made online and a second person can give suggestions to improve and beat that proposal. In case the original proposer is not able to match the more attractive and competing counter proposal, the project will be awarded to the counter-proposal. Under the Swiss Challenge method, Adani will get another chance to make an offer if Patanjalis revised bid exceeds the offer made by the former. Now the interesting thing to watch here is that National Company Law Tribunal (NCLT) is allowed Patanjali on the basis of Bias ground of Resolution Professional or not. Thank You!

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uthor Sagar Gandhi can be reached at :Email Id: [email protected]: +91 7021135404