2019 (8) TMI 1455 - AT - Insolvency and Bankruptcy

Approval of Resolution plan - Section 30(2) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - In view of such statement made by the learned Counsel for the successful Resolution Applicant, no further order or clarification is required to be made. However, Appellant will not take any action which, in effect, will annul the Resolution Plan. It will be also open to the parties to reach an amicable settlement in terms of the Resolution Plan. Appeal disposed off.

Summary

Issues:
1. Appeal against the order approving a Resolution Plan
2. Clarifications required regarding ownership of land where the company operates
3. Agreement termination notice issued by the Appellant
4. Compliance with Section 30(2) of the Insolvency and Bankruptcy Code, 2016
5. Possibility of reaching an amicable settlement

Analysis:
1. The appeal was filed by the Municipal Corporation of Greater Mumbai challenging the order passed by the Adjudicating Authority approving the Resolution Plan submitted by Dr. B.R. Sethi to B.R. Sethi's New Medical Centre Private Limited. The Appellant did not contest the Resolution Plan but sought clarifications regarding the ownership of the land where the company operates.

2. The Appellant claimed that the land belonged to them, and Seven Hills Healthcare Pvt. Ltd. was allowed to construct and operate on it based on an agreement. The Appellant had previously issued a notice to terminate the contract due to alleged violations by the erstwhile Promotors of the Corporate Debtor.

3. The Counsel for the successful Resolution Applicant argued that the Resolution Plan was clear and complied with Section 30(2) of the Insolvency and Bankruptcy Code, 2016. The Appellant acknowledged no grievances against the Resolution Plan, and the successful Resolution Applicant committed to acting in accordance with it.

4. The Adjudicating Authority, considering the submissions, stated that no further orders or clarifications were necessary. However, the Appellant was cautioned against taking any actions that could undermine the Resolution Plan. The parties were encouraged to explore the possibility of an amicable settlement in line with the Resolution Plan.

5. The appeal was disposed of with the above observations and directions, emphasizing the importance of adherence to the Resolution Plan and the potential for resolving any outstanding issues through an amicable settlement.