2019 (1) TMI 1773 - AT - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - case of Committee of Creditors is that in absence of any resolution plan the application under Section 33 was filed by the Resolution Professional with the approval of the Committee of Creditors after 80 days. However the Adjudicating Authority awaited to find out whether any other person is ready to file resolution plan . The impugned order was passed on 26th October 2018 only on completion of 180 days. HELD THAT - In view of the aforesaid stand taken by the respondent and not denied by the appellant and in absence of any resolution plan no other option left but to dismiss the appeal - Appeal dismissed.

Summary

Issues:
Liquidation order under Section 33(2) of the Insolvency and Bankruptcy Code, 2016; Timeliness of resolution plan submission; Dismissal of appeal due to absence of resolution plan.

Analysis:
The appeal was filed by the appellant, the Director of Forgings Private Ltd., against the order of liquidation passed by the Adjudicating Authority under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The appellant argued that the order of liquidation was passed after 80 days without a resolution plan being submitted. However, the Appellate Tribunal noted that no resolution plan was submitted within the time frame for filing, and the argument regarding the short period given to submit the plan was not raised before the Adjudicating Authority.

The Committee of Creditors, represented by their counsel, stated that the application under Section 33 was filed by the Resolution Professional with their approval after 80 days, as no resolution plan was submitted. The Adjudicating Authority waited to see if any other party would submit a plan, and the impugned order was passed after 180 days. As the appellant did not contest the respondent's position and no resolution plan was submitted, the appeal was dismissed by the Appellate Tribunal.

In conclusion, the Appellate Tribunal dismissed the appeal due to the absence of a resolution plan and the failure to raise the issue of the short time frame for plan submission before the Adjudicating Authority. The decision was made in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016, and no costs were awarded in the matter.