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2021 (1) TMI 1231 - Tri - Insolvency and BankruptcySeeking liquidation of the Corporate Debtor as a going concern - forfeiting the performance security and to initiate penal action as per section 74 (3) of The Insolvency and Bankruptcy Code, 2016 - Resolution Plan has been already approved by this Tribunal - whether the applicant has any locus standi to file the applications, especially for liquidating the Corporate Debtor when a Resolution Plan has been already approved by this Tribunal and the Resolution Applicant has taken over the Corporate Debtor and its properties, as also the revival of the Corporate Debtor factory is under process? HELD THAT:- If the Corporate Debtor acts in a manner that infringes the norms of the Resolution Plan, then that can be contested. Moreover, any stakeholder’s right stands violated as a consequence of this infringement, he can make an application to the Adjudicating Authority for liquidation of the Corporate Debtor as per Section 33 (3) of the Code - A liquidation proceeding shall be initiated only when the Corporate Insolvency Resolution Process fails. Section 33 of the Insolvency and Bankruptcy Code, 2016 sets out the conditions laying down three scenarios wherein liquidation proceedings can be initiated against the Corporate Debtor. In a situation where a Resolution Applicant succeeds as Corporate Debtor but it fails to comply with its assurance in terms of the resolution plan, what step is to be taken has already been laid down in Sub-Section (3) of Section 33 of the I&B Code. The expression ‘person aggrieved’ does not include a person who suffers from a psychological or an imaginary injury; a person aggrieved must, therefore, necessarily be one, whose right or interest has been adversely affected or jeopardized - It is significant to point out that pre-occupation of the ‘I & B’ Code with ‘timely resolution of insolvency’ is an important factor. In so far as ‘Liquidation’ is concerned, it destroys the organizational capital etc. ‘I & B’ Code allows ‘Liquidation’ only on failure of ‘CIRP’ and it facilitates/encourages resolution in several manners. This Bench approved the Resolution Plan submitted by Kerala Industrial Infrastructure Development Corporation (KINFRA), a Statutory authority of the Government of Kerala pursuant to the approval of the Resolution Plan by the COC with 92.72% voting rights - the claim of the applicant was also settled in accordance with the Resolution Plan on 19th March 2021 paying ₹ 12,87,926 within 45 days as provided under the Resolution Plan. The mere allegation that CoC has not constituted the Monitoring Committee and that the conduct of the first meeting of the purported Board would not hold water. This Tribunal, taking note of the entire conspectus of the attendant facts and circumstances of the instant case in an encircling manner and also keeping in mind the plea taken by the ex- Resolution Professional that out of 145.60 Crores, 144.96 Crore has been disbursed to the stakeholders immediately and balance 0.64 Crore is pending in the accounts of Hindustan Newsprint Limited due to incorrect account details of certain claimants, returned amount due to dormant account details, for which the communication has been sent to claimants to the available Email. The ex-Resolution Professional to disburse the balance amount finding out the correct account details and complete the process without further delay. Application dismissed.
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