TMI Blog2022 (6) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... n as guarantee. The conduct of the successful Resolution Applicant does reflect poorly on the successful Resolution Applicant and whether the successful Resolution Applicant should be given an opportunity to make the payments as resolved under the Resolution Plan is a very doubtful question. In the interest of the integrity of the process of resolution with an ultimate aim to allow the enterprise once again to stand on its feet, all the stakeholders should strive towards reviving the Corporate Debtor and avoid the liquidation to the extent possible.Hence, the successful Resolution Applicant is directed to pay the balance amount to the Applicant, as agreed in the Resolution Plan within two months from the date of this order, failing wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meeting held on 21 May 2019. The successful Resolution Applicant proposed to make payments in the following manner: a. ₹50,00,000/- (Rupees fifty lakh only) as CIRP Cost within fourteen days of approval of the Resolution Plan, b. ₹30,00,00,000/- (Rupees thirty crore only) to the Secured Financial Creditor within two years through the debtor s realisation/internal accruals, infusion of funds from promoters by debt and/or equity and sale of properties mortgaged with Indian Bank (Allahabad Bank) in separate tranches. c. ₹5,00,000/- (Rupees Five Lakh only) to the Unsecured Financial Creditor within one month from the date of approval of the Resolution Plan by the Adjudicating Authority. d. ₹7,11,543 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent No. 2 never mentioned that the amounts specified in Resolution Plan would be paid by the successful Resolution Professional only after receipt of money that was held up in litigation. 9. That the Applicant has been affected by the violation of the Resolution Plan and hence the Applicant prays for liquidating the Corporate Debtor. Submissions of Ms Urmila Chakraborty, learned Counsel for Respondent Nos.1 to 3 and 5 10. The Respondent No. 2 is involved in infrastructural projects and real estate activities with owned/leased properties. The liquidation value was estimated at ₹26,54,34,919/- (Rupees Twenty-Six Crore Fifty-Four Lakh Thirty Four Thousand Nine Hundred and Nineteen only) and the payment proposed by the successf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 2021 with a proposal for settlement/closure of the cash credit account maintained with the Applicant and the Respondent No. 1 deposited ₹1,50,00,000/- (Rupees One Crore Fifty Lakh only) vide Demand Draft No. 002646 dated 21 May 2021. 16. The Respondent No. 2 sat with the officials of the Applicant in June 2021 and discussed that the valuation done before the Covid-19 pandemic would no longer be valid and a fresh valuation was required to be conducted. 17. After the amalgamation of Allahabad Bank with Indian Bank, the process of negotiation slowed down, and hence the Resolution Plan could not be implemented. 18. The extinguishment of the claim of Fab Leathers Limited was part of the Resolution Plan as additional prayers and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded to the Respondent No. 2 upon rejection of the offer for one time settlement. 23. It would have been impermissible for the Applicant to enter into a One-Time Settlement as it would have amounted to the modification of the approved resolution plan, which would not have been permissible. Mr. Om Narayan Rai placed reliance on the judgment rendered by the Hon ble Supreme Court in Ebix Singapore Private Limited vs Committee of Creditors of Educomp Solutions Limited and Anr (2022) 2 SCC 401 decided on 13 December 2021 (Paragraphs 220 to 222 at page 541). The learned Counsel submitted that in Ebix Singapore (supra), the Resolution Plan was pending approval before the Adjudicating Authority. In the present I.A., the Resolution Plan has alr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Corporate Debtor to get liquidated. 30. Firstly, the payments made under the Resolution Plan would have to be refunded unless otherwise stated in the Resolution Plan. 31. Secondly, the Resolution Plan was approved in 2019, whether the assets of the Corporate Debtor have depreciated in value or increased in value would be a moot question, especially in the light of the pandemic. 32. Thirdly, liquidating the Corporate Debtor would result in dissolving a corporate entity, which has a chance of being revived at this stage. 33. In the interest of the integrity of the process of resolution with an ultimate aim to allow the enterprise once again to stand on its feet, all the stakeholders should strive towards reviving the Corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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