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2019 (2) TMI 1819 - NATIONAL COMPANY LAW TRIBUNAL, KOLKATA.Liquidation of Corporate Debtor - approval of CoC - whether the plan submitted for approval meets the requirement of law as stated in section 30(2) and section 31 of I&B Code? - HELD THAT:- The CoC having issued public notice of invitation of Eol/Plan on AS IS WHERE IS AND AS IS WHAT IS basis, the CoC made exception to the above condition and approved the plan. The plan as approved by them cannot be effectively implemented because resolution applicant made it very clear that his plan is subject to fulfilment of conditions, i.e. eviction of Daaksh Jute LLP. CoC ought not have approved the plan. The commercial wisdom of CoC herein is not questioned but it appears that the CoC did not consider the legal implications while approving the plan. They approved the plan ignoring the provisions of section 30(2)(e) of I&B Code. The resolution plan submitted for my approval is in contravention of above provisions of law. It cannot be approved by this authority. The resolution plan of M/s. K.L.Jute Products Private Ltd. is rejected. CIRP period of 270 days already expired two months ago. Hence, it is of no use to refer other two plans- one by Mr. Madan Mohan Mal and the other by Mr. Prashant Damani back to CoC's consideration. It cannot be done now. I am not entering into controversy whether both of them are related party of the corporate debtor or not and whether the provisions of section 29A are not applicable to the corporate debtor, in view of section 240A of I&B Code. Such questions are irrelevant. CoC has approved the only one plan i.e. M/s.K.L.Jute Private Ltd. However, in my considered opinion that plan does not comply all provisions stated in section 30(2) of I&B Code. I have to reject that plan. The Liquidator, in view of provision of section 33(6) of I&B Code is replaced - Corporate Debtor - Tirupati Jute Industries Limited is liquidated as a going concern under regulation 32(c) of the IBBI (Liquidation Process), Regulation 2016. List the matter on 30.04.2019 for filing of the progress report.
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