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TMI Blog2020 (1) TMI 1523X X X X Extracts X X X X X X X X Extracts X X X X ..... de, 2016 r/w Rule 11 of NCLT Rules, 2016 seeking a relief to condone the delay of 35 days in filing the Application for extension of a period of 90 days from 01.10.2019 till 29.12.2019, to follow the entire process under Section 230 of the Companies Act, 2013 in respect of the Corporate Debtor M/S. Forward Shoes (India) Pvt. Ltd. 2. The reasons stated in the Application appear to be plausible, hence delay condoned. 3. The MA/1323/2019 has been filed by the Liquidator under Section 35(n) and 60(5) of the Insolvency and Bankruptcy Code, 2016 r/w Section 230 of the Companies Act, 2013 r/w Regulation 32 of IBBI (Liquidation Process) Regulations 2016 and Rule 11 of NCLT Rules, 2016 seeking reliefs as follows; a. To Pass an Order directing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Tribunal on 19.06.2017 and the Applicant herein was appointed as the Interim Resolution Professional and subsequently came to be appointed as Resolution Professional vide order dated 08.09.2017. 4. Thereafter, the Applicant effected Public Announcement on 21.07.2017 and in pursuance of the same, claim was received from One Financial Creditor M/S. JM Financial Asset Reconstruction Company Limited, 240 and more Operational Creditors and 1,500 and more Workmen / Employees. Pursuant thereto, the Invitation for Expression of Interest was published on 30.12.2017 and the Committee of Creditors at the meeting held on 15.03.2018, after due deliberations, approved the Resolution Plan submitted by M/S. Acestar Properties Private Limited, unanimo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mit her to continue with the Liquidation of the Corporate Debtor and the said Application came to be dismissed by this Tribunal as infructuous on 05.09.2019. 6. It is stated that pending disposal of the above MA/846/2019, the Liquidator caused a public notice on 11.08.2019,inviting suitable bidders to submit a Scheme of Compromise or Arrangement for the Corporate Debtor under Liquidation either for revival of the Company through the said Scheme or to take over the Company as a "Going Concern". Further, when the last date of the submission of EOI was on 02.09.2019, an Application MA/931/2019 was filed by the Promoter / Ex - Director, the Respondent herein seeking permission to extend the time period for submission of the Scheme and this Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee. 9. The Learned Counsel for the Liquidator further submitted that the time frame for the submission of the Scheme expired on 30.09.2019 and the Scheme submitted by the Respondent through M/S. Shriram Properties Limited and M/S. Vijaya Raja Home Private Limited are in respect of the entire Forward Group of Companies, viz. (1) Forward Leather Co. (2) Forward Shoes (India) P. Ltd., (3) Conceria Virginia P. Ltd.,. It was submitted that the Applicant being the Liquidator for the Forward Shoes (India) Private Limited is duty bound to process the Scheme submitted by the Respondent / Promoter, primarily for the purpose of Resolution concerning the Corporate Debtor and as such, the Applicant sought a relief to comply with the NCLAT Order, to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mar Jagatramka (Promoter), can be said to be ineligible under Section 29A of the Code and can ask for Financial Scheme of Comprise and Arrangement for itself in terms of Section 230 and 232 of the Companies Act of the I&B Code. 10. As noticed above, the Hon'ble Supreme Court in Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors. - Writ Petition (Civil) No.99 of 2019 held that the 'primary focus of the legislation is to ensure revival and continuation of the corporate debtor by protecting the corporate debtor from its own management and from a corporate death by liquidation'. 11. The aforesaid judgment makes it clear that even during the period of Liquidation, for the purpose of Section 230 to 232 of the Companies Act, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Respondent, contradicting the submissions made by the Learned Counsel for the Liquidator has emphatically contended that the Corporate Debtor is an MSME and as such the ineligibility in relation to Section 29 A of the IBC, 2016 would have no bearing upon them by virtue of Section 240A of the IBC, 2016. A perusal of the MSME Certificate attached with the typed set filed by the Respondent would goes on to show that the said Certificate was obtained on 02.04.2018, which is after the initiation of the CIRP by this Tribunal. Further, it may be seen in the said MSME Certificate that the Investment (Plant & Machinery / Equipments) is shown as Rs. 2 Lakhs, whereas the Liquidation value as per the Scheme itself is stated to be around Rs. 67 C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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