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2021 (4) TMI 1288 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - non-compliance with the order dated 16.03.2021, the direction that the CoC shall deliberate and take a decision on the resolution plan, on or before 25.03.2021 - whether there has been any violation of the order dated 16.03.2021 and if so, whether it is sufficient to order liquidation of the corporate debtor? - HELD THAT:- The argument that in view of the extension and exclusion granted by this Adjudicating Authority, there was plenty of time left for concluding the CIRP and therefore, the CoC was justified in taking time in violation of the order dated 16.03.2021, cannot be countenanced at all. While it is true that following the order of exclusion of 52 days vide order dated 16.03.2021 in IA 259/KB/2021, the CIRP was to expire only on 07.05.2021, it does not follow as a natural corollary that time up to 07.05.2021 is available with the CoC to take final call on the resolution plan. The entire CIRP was to be completed on or before 07.05.2021, which is to say, either the resolution plan was to be finally approved after a resolution in its favour was passed by the CoC, or the corporate debtor would have to be sent into liquidation. This was the underlying intention of the order dated 16.03.2021, which specifically provided for a decision to be taken on or before 25.03.2021. The defence that the CoC took the decision that it did on the ground of maximisation of the corporate debtor cannot be accepted because the IBC envisages maximisation of value but within a definite timeframe. Emphasising one aspect at the expense of the other will derail the whole process of resolution. Therefore, the RP and the CoC were certainly not correct in not adhering to the timelines given in the order dated 16.03.2021 without approaching or even once mentioning the matter before the Court for enlargement of time. Given the circumstances and the fact that voting has already been taken place in resolution plan, we do not at this stage pass any orders with respect to liquidation of the corporate debtor. However, the conclusion is inescapable that we have been presented with a fait accompli both by the RP and by the CoC in the guise of maximisation of value of the corporate debtor - Application disposed off.
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