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TMI Blog2018 (12) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... on Plan sent by the Applicant and to return the same to the Applicant without considering the resolution plan on its merits, be pleased to quash and set aside the decision of the CoC; b. That 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 fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n after the expiry of the date of the last day of submission of EOI so long as the CIRP period has not elapsed and/or any other Resolution Plan has not already be accepted by the CoC. 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 sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Applicant herein has not submitted the Resolution Plan on or before 31.10.2018, however the Applicant has submitted the Resolution Plan on 12.12.2018 which is beyond 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicant further submits that the order of admission of CIRP was passed on 03.04.2018 but the said order copy was received by the Applicant only 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , for a direction to the Resolution Professional, who is the Applicant herein, to consider the Resolution Plan submitted by it belatedly and considering the facts and circumstances therein, this Bench allowed the said application by directing the Resolution Professional to consider the Resolution Plan submitted by them.
5. In view of the above said circumstances, this Bench, considering the warranting situation in this case, hereby excludes the period of 5 days i.e. the period of pendency of Application No. 1529 of 2018 before this bench from 17.12.2018 to 21.12.2018, considering the facts, the Resolution Professional has to carry out the certain duties and obligations with regard to the resolution plan before submission of same to the COC. In the normal course, the CIRP period will come to an end on 29.12.2018. But in view of the above extraneous circumstances warranting the interference of this Bench which is of the considered view that the period of 5 days during which the Application No. 1529/2018 was pending, is required to be excluded and consequently the CIRP period of 270 days will end on 03.01.2019.
6. Accordingly, the Application is disposed in the above terms. X X X X Extracts X X X X X X X X Extracts X X X X
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