The court took note of the submissions made by the successful resolution applicant, JSW Steel, that Singal attended only one of the 46 Committee of Creditors meetings in person and only two more via his representatives.
His wife and co-promoter, Aarti Singal, did not attend any of the COC meetings.
“It can thus be seen that after the NCLT had heard the matter in detail, various applications had been filed by the erstwhile management, including Singal, before 48 various forums. This had led to a delay in the pronouncement of the approval order by the NCLT,” the judgement said.
“A specific observation has been made by the NCLT that the erstwhile promoters were making efforts to cause delays, which indicated how desperate and frustrated they were. The NCLT also imposed a cost of Rs 1 lakh on the appellants — the erstwhile promoters — as it concluded that the application seeking copies of the resolution plan filed by them was frivolous,” added.
The court said it could clearly be seen that the entire attempt of the former promoters was to thwart the insolvency proceedings and “not permit the same to be taken to a logical end.”
