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2019 (3) TMI 1287 - AT - Insolvency and BankruptcyApproval of resolution plan - proceeding for liquidation of the company after non-compliance of approved resolution plan - submission made on behalf of the ‘Liberty House Group’ that the ‘effective date’ of plan is date of approval by ‘CCI’ - Liberty House Group’ submitted that the ‘Resolution Plan’ not only contemplated corresponding obligations of the parties who were required to take necessary steps for implementation of the ‘Resolution Plan’, it also contemplated certain material assumptions on the basis of which the Appellant prepared and structured the ‘Resolution Plan’ - HELD THAT:- We find that the submissions as made on behalf of the Appellant- ‘Liberty House Group’ is an afterthought as the Appellant being ‘Resolution Applicant’ was knowing that the ‘Resolution Plan’ is to fulfil all the requirements in terms of Section 30 (2) of the ‘I&B Code’. Section 30 (2) (f) mandates that the ‘Resolution Plan’ should not be against any of the provisions of the existing law. Whether the ‘Resolution Plan’ is against Section 6(1) of the Competition Act, 2002 can be decided only by the ‘CCI’. Pursuant to the ‘Resolution Plan’ as the ‘Liberty House Group’ will acquire ‘Adhunik Metalliks Ltd.’ – (‘Corporate Debtor’) being ‘Successful Resolution Applicant’ is required to intimate the ‘CCI’ in terms of Section 6(2) of the Competition Act, 2002. Therefore, the submission made on behalf of the ‘Liberty House Group’ that the ‘effective date’ of plan is date of approval by ‘CCI’ cannot be accepted. The prayer is rejected. Case of ‘MSTC Limited’ - ‘Resolution Professional’ disputed the claim and taken plea that ‘MSTC Limited’ is a facilitator and not a vendor or owner of raw materials, ‘MSTC Limited’ procure such materials from different vendors and supplies to the buyers - According to Appellant – ‘MSTC Limited’, whatever payment made by the ‘Resolution Professional’ has been appropriated towards the old dues - HELD THAT:- Adjudicating Authority rightly held that Section 14 of the ‘I&B Code’ will override any other provisions contrary to the same. Any amount due to the ‘Operational Creditor’ prior to the date of ‘Corporate Insolvency Resolution Process’ (Admission) cannot be appropriated during the moratorium period. In view of the aforesaid findings, we hold that no case has been made out by the ‘MSTC Limited’ to treat any amount as a ‘Resolution Cost’. Having rejected the prayer, as made by both the Appellants, to give one opportunity for the purpose of compliance of this order and implementation of the plan, we allow the Appellant- ‘Liberty House Group’ another 30 days to make upfront payment in terms of the ‘Resolution Plan’. On failure, it will be open to the Adjudicating Authority, Kolkata Bench to pass appropriate order in accordance with law.
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