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2017 (12) TMI 654 - Tri - Insolvency and BankruptcyCorporate insolvency procedures - whether scheme sanctioned by the BIFR shall be deemed to be approved resolution plan under Sec. 31(l) of I & B Code? - Held that:- It is pertinent to mention that part 2 of the I & B Code 2016 there is no such power which empowers adjudicating authority to review the already sanction scheme under sub-section (1) of Sec. 31 of the I & B Code. Since the petitioner has sought an extension of the sanctioned scheme, given the modification of MDRS already submitted before the BIFR. It is also to be pointed out that this power was earlier vested under sec. 262(6) of the Companies Act, 1956 and after that Companies Act, 2013. The said section has been omitted from I & B Code, and further I & B Code has not made any provision which empowers adjudicating authority to review the sanctioned scheme under the Code because there is no specific provision which authorises the Tribunal to review the scheme. So, we are not authorized to extend the term of scheme even though the matter is pending before the BIFR and under Sec.262(6) of the Companies Act Tribunal was empowered to do so but now coming into force of the I & B Code and without any statutory provision to the effect we cannot extend the term of sanctioned scheme. Since the scheme has already been approved and it is also on record that till-date, the company could not turn its net worth into positive within the period of sanctioned scheme, therefore, it will be presumed that corporate applicant has violated the term of the sanctioned scheme. Thus, liquidation proceedings shall follow, in accordance with the provisions of I & B Code, 2016.
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