2019 (11) TMI 1403 - SC - Insolvency and Bankruptcy

Reconsideration of nil payment to all Operational Creditors as per the Resolution Plan submitted by Committee of Creditors - whether the matter should be sent back to the Committee of Creditors to balance the interests of all the stakeholders and to reconsider the issue - HELD THAT - It will be open for the parties to argue before the NCLT that the amount that has been paid by the Resolution Applicant should not be enhanced and that the secured creditors should be asked to take a call on whether a further hair-cut needs to be ordered so that the Operational Creditors may also receive some proportion of debts owed to them. All arguments will be open to all the parties to make before the NCLT which will be decided strictly in accordance with our latest judgment - the implementation of the Resolution Plan is not stayed. Appeal disposed off.

Summary

Issues:
1. Delay condonation
2. Interpretation of previous judgment
3. Consideration of Operational Creditors' interests
4. Directions to National Company Law Tribunal (NCLT)
5. Implementation of Resolution Plan

Delay Condonation:
The Supreme Court condoned the delay and proceeded to hear the case after considering the arguments presented by all parties involved.

Interpretation of Previous Judgment:
Referring to a recent judgment, the Court directed the National Company Law Tribunal (NCLT) to decide the case in line with specific paragraphs of the mentioned judgment. The NCLT was instructed to assess whether the matter should be referred back to the Committee of Creditors to ensure a fair balance of interests among stakeholders. Additionally, the Committee of Creditors was directed to review the nil payment proposed for Operational Creditors in the submitted Resolution Plan.

Consideration of Operational Creditors' Interests:
The Court allowed the parties to present arguments before the NCLT regarding the payment made by the Resolution Applicant, emphasizing that secured creditors should determine if further adjustments are necessary to ensure Operational Creditors receive a portion of the debts owed to them.

Directions to National Company Law Tribunal (NCLT):
All parties were granted the opportunity to present their arguments before the NCLT, which was mandated to make decisions strictly in accordance with the Supreme Court's latest judgment. The Court clarified that the implementation of the Resolution Plan was not halted and that the civil appeals were disposed of.

Implementation of Resolution Plan:
The Supreme Court made it explicit that the Resolution Plan's execution was not stayed, indicating that the decisions and directions provided in the judgment were to be followed without delay.