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2022 (12) TMI 711 - AT - Insolvency and BankruptcyCancellation of approval of Resolution Plan - Breach of conditions of the Plan - forfeiture of amount of Rs. 20 Crore deposited by the Resolution Applicant - Appellant contended that, Appellant had come to know that there have been various transactions with regard to the 05th floor which was never communicated to the Appellant by the Resolution Professional. Appellant has further come to know that there are disputes with regard to second floor of the hotel. Resolution Professional having never mentioned about the transaction regarding the second floor in Information Memorandum, no breach of the Resolution Plan can be imputed to the Resolution Applicant. HELD THAT:- The Resolution Professional has brought on record the entire information memorandum running into 111 pages which contains all details regarding the assets, financial information, details of liabilities, details of certain litigation and ongoing investigations or proceedings were also mentioned in the Information Memorandum including provisional attachment order passed in the Enforcement Directorate. Information Memorandum is a comprehensive document containing all details and in view of the detailed information memorandum which is part of the record, it is not open for the Appellant to contend that certain information was not shared with the Appellant by the Resolution Professional which furnishes the basis for the Appellant not to implement the Resolution Plan. The Order passed in so far as it canceled the approval given to the Resolution Plan by Order dated 04.01.2022 as well as forfeiting Rs. 20 Crores deposited by the Resolution Applicant is affirmed. Wilful contravention of terms of the Resolution Plan - Referring Matter to IBBI for apapropriate action u/s 74(3) - direction No. III- HELD THAT:- there has to be a consideration by the Adjudicating Authority as to whether facts of the particular case require any reference under Section 74(3). There is no observation in the Order that Appellant has knowingly and willfully contravened any of the terms of the Resolution Plan. Without there being any observation even in prima facie basis that the Resolution Applicant has knowingly and willfully contravened any of the terms of the Resolution Plan, reference under Section 74(3) was not called for, in the facts of the present case. The Order dated 01st November, 2021 in so far as direction No. III is concerned, is set aside
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