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2022 (9) TMI 907 - AT - Insolvency and BankruptcyCIRP - power to entertain new Resolution Plan after approval of another resolution plan by the CoC - whether the Respondents after expressing their inability to submit the Resolution Plan vide their e-mail dated 06.11.2019 can again submit the Resolution Plan after lapse of more than 5 months and that to after approval of the Resolution Plan by the CoC in accordance with law? - HELD THAT:- From the provisions of law and the Regulation the procedure for submission of resolution plan and the powers of the Committee of Creditors in approving the resolution plan by a vote of not less than 66% of voting share of the Financial Creditors after considering its feasibility and viability may approve the plan. Once the plan is approved by the Committee of Creditors, the Adjudicating Authority empowered to approve the plan under Section 31 which was approved by the Committee of Creditors and meets the requirements as referred to in sub-section (2) of Section 30. Further, the procedure encapsulated under the regulations and as per Regulation 39(1-B) the Committee shall not consider any resolution plan received after the time as specified by the Committee under Regulation 36B. In view of the reasons every Resolution Applicant shall comply with the procedure as prescribed under the law and regulations. The due procedure and the scrutiny are a continuous process and cannot be considered as a simple contractual negotiation between two parties. In the instant case, the Respondents have failed to submit the Resolution Plan within the time therefore there is no immunity to the respondents to file beyond the time prescribed. The RP rightly rejected the request of the Respondents - the Respondents failed to establish that the RP violated the CIRP process. It is only the case of the Respondents such averments allegations have been made and the Adjudicating Authority without going into the reality simply ratified the submissions of the Respondents, which this Tribunal highly deprecate the said stand. It is not in dispute that the CIRP period has been expired prior to submission of plan by the Respondents and the Respondents have not evinced any interest in submitting of resolution plan, after they backed out from the submission of plans vide letter dated 06.11.2019. It is not in dispute that the Respondents backed out and submitted its plan beyond the ‘CIRP’ period by levelling baseless allegations against the RP to pressurise the RP to place its plan before the ‘CoC’. Such conduct of the Respondents is unwarranted. The Adjudicating Authority vide its impugned order had directed the CoC to consider the 2nd settlement offer of the 1st Respondent therein, when the resolution plan after approval from CoC was pending adjudication under Section 31 before the Adjudicating Authority. The Appellant has made out a prima-facie case to be interfered with the Order, passed by the Adjudicating Authority, whereby the Adjudicating Authority exceeded its jurisdiction in directing the Resolution Professional to place the Resolution Plan of the Respondents before the CoC is amounts to interference with the Commercial Wisdom exercised by the CoC in its Commercial Decision, more particularly, in the absence of any material irregularity and violation of any law for the time being inforce - this Tribunal comes to a resultant conclusion that the impugned order passed by the Adjudicating Authority (National Company Law Tribunal, Bengaluru Bench, Bengaluru) is illegal, exceeded its jurisdiction and hence, the same is set aside. Appeal allowed.
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