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2021 (3) TMI 281 - SC - Insolvency and BankruptcyFailure to implement Resolution Plan - NCLAT noted that the appellant had failed to implement the Resolution Plan for a period of over eight months and, hence, declined to exercise its jurisdiction pursuant to its inherent power under Rule 11 of the NCLAT Rules, 2016 - HELD THAT:- By the order of the court dated 9 October 2020, which was passed on the statement which was made by Senior Counsel, an amount of ₹ 50 crores was required to be deposited before 10 January 2021. On 25 November 2020, while clarifying the earlier order by which the order of NCLAT was stayed, time for the deposit of ₹ 50 crores was extended until 25 February 2021. The appellant was clearly put on notice that the amount of ₹ 20 crores already deposited would stand forfeited in the event the appellant fails to comply with the terms of the order. The appellant has been unable to raise the funds. The fact of the matter, as it emerges from Mr Vishwanathan’s submissions, is that the appellant will be unable to raise funds from the Term Lenders who are insisting that the status of the Company should change from a company under liquidation to an active status. The order of liquidation has not been set aside. Ultimately, what the request of the appellant reduces itself to, is that it would raise funds on a mortgage of the assets of the Company and unless the Company is brought out of liquidation, it would not be in a position to raise the funds. This is unacceptable. The appellant has failed to abide by its obligations. In that view of the matter, there are no reason or justification to entertain the Civil Appeal any further. The consequence envisaged under the order of this Court shall accordingly ensue in terms of the forfeiture of the amount of ₹ 20 crores. As a consequence of this order, the management shall revert to the liquidator for taking steps in accordance with law. Application disposed off.
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