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2021 (5) TMI 574 - Tri - Insolvency and BankruptcyLiquidation of Corporate Debtor - Section 60 (5) of the Insolvency and Bankruptcy Code, 2016, as amended and Rule 11 of the National Company Law Tribunal, Rules, 2016 - HELD THAT:- Though the Resolution Plan was approved by the NCLT on 25.11. 2019, till date the Resolution Applicant has deliberately failed to implement the Resolution Plan. Aggrieved by the order of the Steering Committee, the Resolution Applicant filed an appeal before the Hon'ble NCLAT and NCLAT did not agree with the submissions of the Resolution Applicant, dismissed the appeal and confirmed the order of this bench dated 18.02.2020. The Resolution Applicant blatantly violated NCLT order dated 18.02.2000 and the Hon'ble NCLAT order dated 25.06.2020. From the records it appears that the total value of the Resolution Plan is approx. ₹ 900/- crores out of which ₹ 420 crores to be upfront payment and ₹ 480 crores by issuing NCDs and the Resolution Applicant failed to bring in even 5% of the plan amount. CoC permitted the Resolution Applicant to submit performance security of ₹ 42 crores with balance of ₹ 48 crores to be deposited within 90 days of the CoC's approval. However, till date the Resolution Applicant has failed to deposit the balance amount. As per I & B code if no Resolution Plan is approved by the COC/Adjudicating Authority within the prescribed timeline, the extended timeline the natural corollary, automatic next step is only Liquidation of the Corporate Debtor therefore in the instant case the Adjudicating Authority did not satisfy to grant additional time to complete the resolution process as prayed for instead this Adjudicating Authority is completely satisfied to pass an order for Liquidation of the Corporate Debtor - The entire CIRP process has been carried out by exercising the Commercial Wisdom of the COC therefore the failure to implement the plan by the successful Resolution Applicant after carrying out the required due diligence, various approval process including valuation matrix, financial matrix etc therefore there is no need to grant additional time to start the process once again. Considering the above facts and background we are of the considered view that in the interest of all stake holders it is better to order for liquidation of the Corporate Debtor and the process may be completed at the earliest and in the liquidation the Corporate Debtor may be sold as a going concern among various other methods provided in I & B code. Since time is essence, maximisation of value of assets of the Corporate Debtor is primary object of I & B Code, we direct the Monitoring Agency, the Steering Committee, COC to carry out the Liquidation process in accordance with I & B code as well as the Rules, Regulations prescribed there under and we hereby appoint the Applicant Mr. Abhijit Guhathakurta as Liquidator and he is directed to complete the Liquidation Process in accordance with Law - The initiation of liquidation process against the Corporate Debtor is allowed. Application allowed.
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