Punjab National Bank vs Mr. Ashish Chhawchharia Resolution Professional (Erstwhile) Jet Airways (India) Limited & Ors.
Company Appeal (AT) (Insolvency) No. 584 of 2021 & Interlocutory Application No.2720 of 2021
Coram: Hon’ble Chairperson Justice Ashok Bhushan (Judicial Member) & Hon’ble Member Barun Mitra (Technical Member)
Forum: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Date of Decision: 21 October, 2022
Conclusion
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Facts & Background:

  • The Punjab National Bank Zonal Sastra Centre Mumbai, Maharashtra, the Financial Creditor was the Appellant.
  • The Respondents in the case were:
  1. Mr. Ashish Chhawchharia, the Resolution Professional (Erstwhile) of Jet Airways (India) Limited, was the Corporate Debtor.
  2. Jalan Kalrock Consortium C/o Murari Lal Jain, the Successful Resolution Applicant
  3. Committee of Creditors of Jet Airways (India) Limited Through State Bank of India.
  • During 2016-2017, the Corporate Debtor received loans from the Appellant, which were later defaulted. On 30.03.2019, the Promoter executed a Share Pledge Agreement, pledging 2,95,46,679 equity shares to secure outstanding dues.
  • The Corporate Insolvency Resolution Process (CIRP) was initiated on 20.06.2019 under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Appellant filed a claim of Rs.956.21 crores, which the RP admitted for Rs.9,562,165,500.
  • PNB initially claimed Rs. 963.47 crores, later revised to Rs. 956.21 crores. On 19.09.2020, the RP notified the Appellant of a claim reduction based on the Fair Market Value of the pledged shares. Subsequently, on 22.09.2020, the Appellant filed a claim for Rs.994.16 crores, which was reduced by Rs.202 crores.
  • Two Resolution Plans were submitted. The 16th CoC Meeting (28.09.2020) discussed revised plans, and the 17th CoC Meeting (03.10.2022) approved Jalan Fritesch Consortium's plan. In the 18th CoC Meeting, the Appellant’s ₹200 crore claim was rejected as they were equity shareholders.
  • The RP filed I.A. No. 2081 of 2020 before the NCLT, Mumbai, seeking approval of the Resolution Plan, while the Appellant filed I.A. No. 2480 of 2020, which was scheduled for hearing on 18.03.2021, with the final hearing set for 13.05.2021.
  • On 22.06.2021, I.A. No. 2081 of 2020 was allowed, and the Resolution Plan was approved; however, I.A. No. 2480 of 2020 was not adjudicated. Hence, the Appellant filed the present Appeal.

Main Issue:

  • Whether the Appellant was entitled to the complete admitted claim of Rs. 956.21 crores without the reduction of Rs. 202.09 crores?
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