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TMI Blog2025 (5) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... led under Section 7 by State Bank of India ("SBI"), Corporate Insolvency Resolution Process ("CIRP") against CD - M/s JSSI Hydraulics Pvt. Ltd. Commenced. Form-G was published on 04.10.2022. Resolution Plan submitted by Prospective Resolution Applicants were put to vote and the Resolution Plan submitted by M/s JM Hydraulics Solutions Pvt. Ltd. was approved by the Committee of Creditors ("CoC") as well as by the Adjudicating Authority vide order dated 29.04.2024. ii. The Successful Resolution Applicant ("SRA") - JM Hydraulics Solutions Pvt. Ltd. Deposited the Bank Guarantee, which was found to be forged. The Resolution Professional ("RP") filed an IA No.3762 of 2024 for recall of the order dated 29.04.2024, which IA was allowed on 19.12.2024 and the order dated 29.04.2024 was recalled. The Adjudicating Authority while recalling the order dated 29.04.2024, remitted the matter back to the CoC to take fresh steps in the direction of resolution of the CD. The Adjudicating Authority directed the process to be completed within 60 days. iii. In pursuance of the order, the CoC decided to not to publish Form-G and decided to maintain eligibility of all existing PRAs, excluding JSSI Hydra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations"). After rectification by the order dated 27.01.2025, the Appellant was provided the request for submitting the Resolution Plan along with evaluation sheet only on 29.01.2025, hence, the Appellant has only short period of five days before submission of the Resolution Plan, which was not in accordance with the Regulation 36B, sub-regulations (3) and (5). The CD being MSME, the Appellant was entitled to submit a Resolution Plan. The RP has adopted a process, which is not in accordance with the CIRP Regulations. The Adjudicating Authority committed error in rejecting IA No.856 of 2025 filed by the Appellant. 5. Learned Counsel for the RP refuting the submissions of learned Counsel for the Appellant submits that immediately after the order dated 27.01.2025 was passed, the CoC Meeting was convened on 28.01.2025 and 29.01.2025. The CoC decided to give opportunity to Promoters, to submit a Resolution Plan by 03.02.2025 with EMD of Rs.2 crores. Sunrise Industries, which has submitted a Resolution Plan was also allowed the same time. The period of 60 days allowed by the NCLT was expiring on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2024, the 7th Meeting of the CoC was held, where the CoC decided to call Resolution Plans from all eligible Prospective Resolution Applicants. In the order dated 19.12.2024, it was held that JSSI Hydraulics Pvt. Ltd. is not eligible to submit the Plan, was rectified and corrected by Adjudicating Authority by its order dated 27.01.2025. After the said order dated 27.01.2025 was passed by Adjudicating Authority, effect of which is that the CD became eligible to submit a Resolution Plan and the CoC in its Meeting dated 28.01.2025 decided to invite the CD also, to file a Resolution Plan by 08:00 PM of 03.02.2025. An email dated 28.01.2025 was sent to the Appellant, informing that Resolution Plan should be accompanied along with payment of EMD of Rs.2 crores and the Appellant was communicated by the email to submit the Plan by 03.02.2025. The Appellant did not submit the Plan by 03.02.2025 and wrote an email asking for certain clarifications. The Appellant sent email on 02.02.2025, pointing out certain disparities between certain figures i.e. mentioned in the Information Memorandum, which was replied by RP on 03.02.2025. On 05.02.2025, the Appellant again sent request for extension of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution plan(s). (5) Any modification in the request for resolution plan or the evaluation matrix issued under sub-regulation (1), shall be deemed to be a fresh issue and shall be subject to timeline under sub-regulation (3). " 12. The present is a case where process of issuance of Form-G had commenced on 04.10.2022, under which all Prospective Resolution Applicants were allowed time as per Regulation 36B. The process, which commenced after the order dated 19.12.2024 was not direction for start of a fresh process by issuance of fresh Form-G, rather Adjudicating Authority has remitted the matter to CoC and it was left to the commercial wisdom of the CoC to take steps. The Adjudicating Authority further held that if steps are not completed within 60 days, the CD would be deemed to be liquidated. The CoC in its 7th Meeting held on 13.01.2025, resolved to invite PRAs, who had submitted the Resolution Plans in the previous round. The CD was also not eligible to submit the Resolution Plan, in view of the order dated 19.12.2024 and CoC decided to seek Resolution Plan from three Resolution Applicants, who had submitted the Resolution Plans in the previous round. In Agenda Item No.5, foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded the time for submitting the Plan to 03.02.2025, which was extended both for Appellant as well as other PRAs, we do not find any error in the order of Adjudicating Authority rejecting the Application filed by the Appellant, praying for extension of timeline for submission of the Plan by the Appellant. In IA 856 of 2025, the Appellant has prayed for following reliefs: "a. Allow the present Application and direct the Respondents to extend the timeline for submission of the Resolution Plan, and/or; b. Permit the Applicant to submit a Resolution Plan for resolution of the Corporate Debtor; c. Direct the Respondent No. 1/ RP to place the Resolution Plan proposed to be submitted by the Applicant before the CoC of the Corporate Debtor; d. Pass an ex parte ad-interim order directing the Respondents not to consider and approve any resolution plans submitted by other PRAs till the adjudication of the present Application; and e. Pass any other orders in favour of the applicant to secure the ends of justice." 14. The CoC having already extended the time till 03.02.2025 for the Appellant to submit the Resolution Plan, the prayer of the Appellant to extend further time for submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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