Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2018 (12) TMI 1807

..... itors has not been seriously dealt with in the time frame. If the COC and RP would have taken adequate care to have negotiation with the resolution applicant day by day, bearing in mind the very object of the Code which is Resolution and maximisation of value, chances of success in having a resolution in the case in hand was not too remote. The laxity in dealing with negotiation with the resolution applicant for having a resolution is visible from the mode of discussion process entertained by the COC in the case in hand. Thereby, the chance of revival has been blocked. The period of CIRP cannot be extended for any reasons advanced on the side of the Ld. RP as well as on the side of the Resolution Applicant, as Section 12 mandates, no further extension beyond 270 days is to be granted in the like case - Having failed in obtaining the Resolution Plan within the mandatory period of 270 days and since the Committee of Creditors has decided to have liquidation of the Corporate debtor, I have no other alternative than to pass an order requiring the Corporate Debtor to be liquidated in the manner as laid down in the Chapter Ill read with Section 33 of the I&B code, 2016. Application d .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ttee of Creditors did not vote in favour of the Plan. 88.04% voted against the Resolution Plan and only 11.96% vote shares were cast in favour of the Resolution Plan. Thereby, the Resolution Professional was unsuccessful in getting the approval of only one resolution Plan received by him to take over the stressed assets of the Corporate Debtor and in the meanwhile, the extended period of CIRP was expired on 1 st October, 2018. 4. When this case was taken up for hearing on 29-10-2018, three applications were filed, i.e., CA(IB) No. 582/KB/2018, CA(IB) No. 955/KB/2018 and CA(IB) No. 965/KB/2018. Two other applications also came up for consideration which were filed by the two Operational Creditors contending that their claims have not been admitted by the Resolution Professional. 5. In the meanwhile, the Resolution Applicant also filed CA(IB) No. 965/KB/2018 for reconsideration of the resolution Plan by the Committee of Creditors. 6. All these applications came up for consideration after the expiry of the mandatory period of the CIRP process. Therefore, none of the Applications requires any consideration and therefore, those applications are not elaborately discussed here in this cas .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... on Plan. (Annexure B in CA(IB) No. 965/KB/2018). 12. It is significant to note that the Plan of the resolution Applicant has been under consideration of the Resolution Professional as well as before the Committee of creditors from 29 th June, 2018 onwards i.e. before the 180 days from the starting period of CIRR The 180 days expired on 03-072018. The RP was obliged to identify Resolution Applicant finally prior to 03-07-2018. It has not happened in the case in hand. 13. The Committee of Creditors has undergone discussion with the Resolution Applicant for modification up to 24-09-2018 i.e. about three months have been taken by the Committee of Creditors for completing negotiation with the only one Resolution Applicant. On 26-09-2018, the Resolution Plan was put in for voting and it was not successful. Even on 2609-2018, there were few more days left for completion of the CIRP period. No effort seems to have been made from the Resolution Professional or from the Committee of Creditors to see that the Plan is to be modified to suit the demand on the side of the Resolution Applicant for waiver of furnishing Performance Bank Guarantee. What is the modification expected from Resolution A .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... Norm Latest Timeline Section 16(1) Commencing of CIRP and appointment of IRP Regulation 6(1) Public announcement inviting claims Within 3 days of Appointment of IRP T+3 Section 15(1) (c) Regulations 6(2)(c) and 12(1) Submission of claims For 14 days from Appointment of IRP T+14 Regulation 12(2) Submission of claims Upto 90 th day of commencement T+90 Regulation 13(1) Verification of claims received under Regulation 12(1) Within 7 days from the receipt of the claim T+21 Regulation 13(2) Verification of claims received T+97 under Regulation 12(2) Section 21(6A)(b)/Regulation 16A Application for appointment of AR Within 2 days from verification of claims received under regulation 12(1) Within 7 days of the constitution of the COC, but with seven days' notice In the first meeting of the coc On approval by the AA If RP is not appointed by 40th day of commencement T+23 Regulation 17(1) Report certifying constitution of COC T+23 Section 22(1)/Regulation 19(1) 1 st meeting of the coc T +30 Section 22(2) Resolution to appoint RP by the coc T+30 Section 16(5) Appointment of RP Regulation 17(3) IRP performs the functions of RP till the RP is appointed T+40 Regulation 27 Appointment of Va .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... he above said discussion, I am of the considered opinion that I could not extend the period of CIRP for any reasons advanced on the side of the Ld. RP as well as on the side of the Resolution Applicant, as Section 12 mandates, no further extension beyond 270 days is to be granted in the like case. 19. Having failed in obtaining the Resolution Plan within the mandatory period of 270 days and since the Committee of Creditors has decided to have liquidation of the Corporate debtor, I have no other alternative than to pass an order requiring the Corporate Debtor to be liquidated in the manner as laid down in the Chapter Ill read with Section 33 of the I&B code, 2016. 20. The CA(IB) No. 965/KB/2018, upon the reason highlighted above, requires no consideration and it is liable to be dismissed. The CA(IB) No. 955/KB/2018 is an Application for admitting the claim put forward by the Operational Creditor. Since an order of liquidation is passed, this CA also requires no consideration. It is liable to be dismissed. However, with a liberty to submit the claim, if any, to the Liquidator. The Resolution Professional in the instant case has consented to continue the liquidation process as a L .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||