TMI Blog2022 (5) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... o him by the IMC. The payment plan got further derailed due to holding back of the NOC by the financial creditors/IMC - In terms of the approved resolution plan attached with the application, it is seen that the SRA had proposed to dispose of non-business assets of the CD in accordance with Regulation 37(a) (d) of the CIRP regulations, and had stated that the same may be used for payment of the Resolution amount proposed under the plan. The Applicant had at least twice written to Respondent Nos. 2 and 3 dated 24.03.2021 and 20.09.2021 seeking NOC for 'sale of the asset but the respondent did not issue the same. Had this NOC been issued on time the remaining proceeds of the plan could have been met from the sale of the assets which wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditors viz. State Bank of India and Indian Bank are arrayed as respondents. Facts of the Case 4. The Corporate Insolvency Resolution Process ('CIRP') of Prime Retail India Limited was initiated, pursuant to an 'order of admission' dated 27.08.2019 in CP (IB)1127/KB/2019 filed by Swatch Group (India) Limited (hereinafter referred to as Operational Creditor ), against Prime Retail Limited or ( the corporate Debtor ) under the provisions of the Insolvency and Bankruptcy Code 2016 ( Code/IBC ). 5. The CoC approved the Resolution Plan submitted by BMS Commercial Private Limited ( Successful Resolution Applicant ) with an 89.21% voting share on February 13, 2020. The RP applied for approval of the Resolution Plan of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as per the Resolution plan, the IMC recommended the matter to this Adjudicating Authority for ordering the liquidation of the corporate debtor. The SRA however contends that it had inter-alia proposed to sell the non-business assets of the CD for making some portion of the payments required to be made under the plan, for which, the NOC for which has been held back by the IMC itself and as such it could not implement the plan thus far. 7. The sale of such assets was an intrinsic part of the Resolution plan. 8. As such the applicant has filed this application under section 60(5) of the IBC, inter alia praying for the following reliefs: a. Direction upon the respondents to forthwith issue a no-objection certificate and do all acts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the IMC was deliberating on the issue of granting extension to the SRA and also whether to press for the liquidation of the Corporate Debtor, it received a proposal for the sale of the 'non-business assets' of the Corporate Debtor and the proposal was intimated to the IMC vide letter dated 24th March 2021 requesting for 'sell-approval in terms of clause 6 of the Resolution Plan for running smooth course. The Applicant submits that it wrote to Respondent Nos. 2 and 3 dated 24.03.2021 and 20.09.2021 seeking NOC for the sale of the asset but the respondent was reluctant to even reply. Even though in the 5th IMC meeting the approval for selling the property at 1/1 Camac Street was recorded in the minutes, the required NOC was still ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities. 17. This Adjudicating Authority had directed the concerned bank authorities to be present in the court vide order dated 28.02.2022. 18. On the next date of hearing the Ld. Counsel appearing for the State Bank of India presented a draft NoC which was a conditional document that did not explicitly say that the Bank would have no objection if the subject properties were disposed of. Analysis and Finding 19. From the submissions made by the applicant it is seen that out of the total plan size of ₹ 11,05,00,000/- a sum of ₹ 8,07,00,000/- which works out to about 73.03% of the total consideration. 20. Even though the upfront payment of ₹ 5.0 Cr was made as per the plan, the SRA was not able to make the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... showroom of the corporate debtor at Kolkata was disconnected by the mall authorities due to nonpayment of electricity charges. 23. Further whereas IMC had extended the time for payment till 11.03.2021 as depicted in the minutes of the 4th meeting of the IMC, still on 22.02.2021, chose to file I.A. No. 252/2021 before this Tribunal for proceeding with the liquidation of the corporate debtor and pursued the application despite receiving sizeable payments in March 2021, thus showing their disinterest in putting the Corporate Debtor back on its feet in accordance with the approved resolution plan. 24. In light of the facts stated in the application and the submissions made, we make the following order: a) The application is allowed i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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