TMI Blog2018 (12) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... result in a huge loss to the Company. Any Regulation which does not anticipate such a situation and if the same comes in the way of proper justification and implementation of the principles of the Code, the same need not be considered nor can be treated as an impediment in the implementation of the Code. The spirit of the Code is first and then comes the other things. The rejection of the Resolution Plan by the CoC even without opening the envelope containing the Resolution Plan on the ground that the same is submitted after the expiry of the stipulated time fixed by the CoC, is certainly against the law/Code and we hereby direct the Respondent to forthwith consider the Resolution plan of the Applicant on its merits and judicious decision may be taken in the best interest of the parties concerned - the Application is allowed. Seeking exclusion of period of 15 days from the Corporate Insolvency Resolution Process - section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The Hon ble NCLAT in its order dated 08.05.2018 in the case of QUINN LOGISTICS INDIA PVT. LTD. VERSUS MACK SOFT TECH PVT. LTD., MOHD. SABIR PARVEZ AND MR. M.L. JAIN, (RESOLUTION PROFESSIONAL) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t this Hon ble tribunal be pleased to direct the CoC to consider the resolution plan submitted by the Applicant on its merits as Applicant believes that its plan will maximize the asset value of the Corporate Debtor; c. That this Hon ble Tribunal by an order and injunction restrain the CoC from approving any resolution plan without considering the resolution plan of the Applicant; d. Any other order that this Hon ble Tribunal may deem fit in the facts and circumstances of the present cae. 2. It is submitted that the Corporate Debtor was put into CIRP by an order of this Tribunal dated 03.04.2018 and consequently the present Applicant submitted its claim to the IRP and on admission of the claim the Applicant was made as member of the Committee of Creditors ( CoC ) of the Corporate Debtor. On 08.06.2018, CoC invited prospective resolution Applicants to submit Expression of Interest ( EOI ) on or before 29.06.2018 which was subsequently extended to 31.10.2018 and the RP received three EOI from prospective resolution Applicants. The CoC fixed 31.10.2018 as the cut-off date for the Resolution Applicants ( RA ) to submit the Resolution Plan for approval by the CoC. It is further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . c. RP is required to present the Resolution Plan to the CoC as provided under Section 30(3) of the Code, but admittedly RP in the present case has not submitted the Resolution Plan in the manner as contemplated but as only forwarded the envelop to the CoC and by doing so RP in fact has extended the period for submission of Resolution Plan and therefore CoC was duty bound to consider the Resolution Plan on merits. d. CoC is mandated under section 30(4) of the Code to consider the Resolution Plan on merits and it cannot reject the Resolution Plan forwarded by RP without considering the same on its merits. e. The object of the Insolvency Code is to maximize the value of the assets and to ensure that best possible returns has drawn from Resolution Plan and the action of the CoC in rejecting the Resolution Plan would defeat the object of the Insolvency Code. f. The Regulations framed under the Code cannot be construed in a way so as to deprive any Resolution Applicant from coming forward at any stage prior to acceptance of other Resolution Plan by CoC/NCLT and/or expiry of CIRP period. g. The Applicant submits that in the following cases, NCLT and NCLAT have permitted s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cut-off date. It is further submitted that the 270 days of CIRP will expire on 29.12.2018. The Respondent submits that the present application is a clear abuse of process of law with mala fide intent to disrupt the CIRP and this Application is to be dismissed with exemplary cost. 6. In reply to the contention of the Respondent, the Applicant further submits that they were making efforts to tie up with some prospective investors and it was only few days back a concrete picture has emerged which would in their opinion can definitely revive the prospects of the company. The delay in submitting the Resolution Plan is neither deliberate nor wanton and is purely on account of the reasons beyond their control. 7. This Bench after hearing both the parties, looked into the Regulations which would not allow the acceptance of any proposal by any resolution Applicant beyond the date as fixed by the CoC. It is clear that the Resolution Applicant had approached the RP with a proposal at the 12th hour but certainly before accepting or finalization of any Resolution Plan. 8. Now the point is whether the Resolution Plan of the Applicant can be considered at this belated hour or should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 06.04.2018. One Omkara Asset Reconstruction Pvt. Ltd. (Potential Resolution Applicant) who is also a member of Committee of Creditor (COC) of the Corporate Debtor belatedly submitted a resolution plan on 11.12.2018 to the Applicant after the last date for submission of the resolution plan which was fixed on 31.10.2018, the said resolution plan was not considered by the COC since it was received after the due date. The said Omkara Asset Reconstruction Company filed an application before this Tribunal for a direction to the COC/RP to consider the Resolution Plan and the said application was pending before the adjudicating authority from 17.12.2018 onwards. The Applicant further submits that he has to examine the resolution plan submitted by the Potential Resolution Applicant to find out whether the resolution plan is in consonance with the provisions of section 29(A), 30(2) of the Code and the applicable provisions of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016. He further submits that the Resolution Plan has to be evaluated by COC, COC has to negotiate with the Resolution Applicant etc. Therefore, it is submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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