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2019 (7) TMI 1603 - Tri - Insolvency and BankruptcyImplementation of Resolution Plan - It is due to lackadaisical approach of Liberty House Group in implementing the Plan or it is because the Committee of Creditors/Monitoring Committee's non-cooperation to Liberty House Group in implementing the Plan? - HELD THAT:- It is the say of State Bank of India/Committee of Creditors that Liberty House Group was obliged to make upfront cash payment of ₹ 410 Crore within 57 days of approval of the Resolution Plan. They did not make the payment thereby they committed breach of the implementation of the Resolution Plan. As against the Liberty House Group contends that Committee of Creditors/Monitoring Committee did not issue in their favour offer letter of equity shares of the Corporate Debtor. Unless such offer letter is issued, it is difficult for them to invest the funds as per the Plan. All parties in the appeal before Hon'ble NCLAT are bound by this order unless it is set aside or varied by the Appellate Tribunal/Court. This Adjudicating Authority is also bound by this order. In view of the above order this Adjudicating Authority cannot again go in to the question whether Liberty House Group can be allowed to not to make upfront payment because Committee of Creditors/Monitoring Committee did not give them offer letter. In this case, the Committee of Creditors while approving the Resolution Plan of Liberty House Group, did not ask them to give performance security for successful implementation of the Resolution Plan. Moreover, this provision is added in Regulation by Amendment dated 24.04.2019. If this provision is to be used against Liberty House Group by forfeiting their amount treating as performance's security, it would be nothing but penalising them at this stage. Such provision cannot be used retrospectively. Their Plan is approved almost year ago before the amendment. Hence, the prayer of Committee of Creditors to allow them to forfeit sum of ₹ 50 Crore deposited by Liberty House Group treating it as a performance's Security cannot be allowed. e submissions of learned Senior Counsel though appears to be attractive, but cannot be accepted. Committee of Creditors had an opportunity to consider the Plan submitted by M/S Maharashtra Seamless Limited at earlier point of time. Their Plan was rejected by Committee of Creditors because in the Plan they had offered the investment in the Corporate Debtor below the liquidation value. In such a situation, the authority cannot reset the clock back to day one - the Committee of Creditors cannot be allowed to restart the Corporate Insolvency Resolution Period afresh over and again. Since the Liberty House Group, the Successful Resolution Applicant failed to implement Resolution Plan as submitted by them, I cancelled their Resolution Plan and proceed to pass order of liquidation of Corporate Debtor as contemplated under Section 33 of Insolvency and Bankruptcy Code, 2016 - the Liquidator is directed to liquidate the Corporate Debtor as a going concern as per Regulation 32 (f) of Insolvency and Bankruptcy Board of India (Liquidation Process Regulation, 2016) - The Liquidator is directed to proceed with the process of Liquidation in a manner laid down in Chapter Ill of the Insolvency and Bankruptcy Code, 2016.
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