TMI Blog2023 (5) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... time Settlement) proposal to the financial creditor namely Punjab National Bank till 13.03.2020, and as per information available with Resolution Professional as the said revised one time settlement proposal has not been submitted to the bank till date and the CIRP period will be expiry on 18.03.2020 . The Appellant has miserably failed to make the proposal of the amount of Rs. 7.30 Crore along with upfront of Rs. 80 lakh before 13.03.2020 which was the committed date. Be that as it may, the Corporate Debtor had rather sent an email through Ravi Vaishnav of Mayur Xerox Centre (third party) dated 16.03.2020 with the proposal along with copy of two DD dated 16.03.2020 of Rs. 40 lakh which was not the upfront amount of Rs. 80 lakh, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed. 2. Brief facts of the case are that the Corporate Debtor availed various credit facilities from the Financial Creditor (Punjab National Bank), by way of Cash Credit Facility, Bills Discounting, Term Loan, in the year 2005, the said facilities were renewed and the limits were enhanced from time to time by the Financial Creditor on the request of the Corporate Debtor. The Corporate Debtor executed various documents such as Hypothecation Agreement dated 09.11.2011 to secure the Term Loan. Since the Corporate Debtor did not maintain the financial discipline, therefore, its accounts were declared as NPA by the Financial Creditor on 30.09.2017 and recall notice dated 03.10.2017 was issued and outstanding amount of Rs. 11,25,09,298.94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he RP convened the 5th Meeting of the CoC on 17.03.2020 and informed that he had neither received any OTS proposal nor any upfront amount before 13th March, 2020 from the Ex-Director of the Corporate Debtor. Since, the statutory time limit of 180 days for CIRP was going to expire on 18.03.2020 and no resolution plan was received till then for the purpose of resolution / revival of the Corporate Debtor as well as no viable proposal was submitted by the Erstwhile Director of the Corporate Debtor for settlement of the account, the CoC in its wisdom decided to proceed with liquidation of the Corporate Debtor in the said meeting (5th Meeting). Apropos, the decision taken by the CoC, the application bearing IA No. 131/JPR/2020 in CP No. 205/7/JPR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to pay the dues rather by making various litigations to different forum/ authority creating hurdles in the recovery proceedings. Thus, such assurance of the erstwhile director of the corporate debtor can't be relied upon. As the statutory time limit of 180 days for CIRP proceedings is going to complete shortly and no resolution plan received therein for resolution/ revival of the corporate debtor as well as no viable proposal is submitted by the erstwhile director of the corporate debtor for settlement of the account, COC has decided to proceed for liquidation of the corporate debtor as per provisions of IBC, 2016 7. Counsel for the Liquidator has also referred to the 5th meeting of the CoC to contend that time was granted to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to whether the period of 180 days should have been further extended for the purpose of accepting/awaiting the proposal made by the Appellant for the purpose of keeping the Corporate Debtor as a going concern? 9. From the perusal of the record, we have found that sufficient time was given to the Appellant for this purpose on their own asking because it has been recorded in the 5th meeting of the CoC The Chairman found that in the previous COC meeting the erstwhile directors of the corporate debtor have informed to the CoC that they will submit revise OTS (One time Settlement) proposal to the financial creditor namely Punjab National Bank till 13.03.2020, and as per information available with Resolution Professional as the said revised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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