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2018 (7) TMI 2139 - Tri - Insolvency and BankruptcySubmission of Resolution Plan - section 60(5) of I B Code, 2016 - HELD THAT - Regulation 36A has recently been amended (03.07.2018). Subclause(6) of 36A mandates the RP to reject the EOI received after the time specified in the invitation. In this case, last date of submission of EOI was 30.05.2018 and the last date of submission of RP was 18.06.2018. Admittedly, the applicant did not submit EOI on or before 30.05.2018 and the RP on or before 18.06.2018. The reason for non-submission of EOI in the plan is not at all convincing. Whether the authority while invoking its jurisdiction under section 60(5) of the Code can direct the RP to consider the applicant's plan? - HELD THAT - The CIRP period of 180 days would be completing on 05.09.2018. No doubt it can be extended further for 90 days but it can be done only if COC desires. The broad object of the Code is that for insolvency process of Corporate Persons in time-bound manner for maximization of value of assets of such person. In this case, the RP has already received three plans. In order to have maximization of the value of assets of the Corporate Debtor on competitive basis, I feel that the RP should be directed to consider the applicant's plan also because CIRP period of 180 days is yet to be completed and more particularly, even further period of 90 days is still at the hands of the COC. The RP is directed to receive the Resolution Plan of the applicant for consideration of COC. The plans to be submitted on or before 30.07.2018. The applicant to pay cost of ₹ 1,00,000/- by cheque/Demand Draft to be drawn on account of the Corporate Debtor which is being operated by the Resolution Professional and RP shall use that amount as resolution cost - Application allowed.
Issues involved:
Application under section 60(5) of the Insolvency & Bankruptcy Code, 2016 for direction to allow submission of resolution plan after missing deadlines. Analysis: 1. The applicant, a prospective Resolution Applicant, filed an application under section 60(5) of the I&B Code, seeking permission to submit a resolution plan after missing the deadlines. The Resolution Professional (RP) had made a public announcement of the Corporate Insolvency Resolution Process (CIRP) through newspapers, setting deadlines for Expression of Interest (EOI) and resolution plan submission. 2. The RP confirmed that the applicant did not submit the EOI or the resolution plan within the specified timelines. Despite the applicant's claim of not receiving a response to their EOI email, the RP received three other resolution plans and opened bids for consideration by the Committee of Creditors (COC). 3. The RP highlighted the time constraints under the I&B Code, emphasizing the need to finalize the resolution plan within the stipulated period to avoid prejudice to the CIRP process. The RP argued against considering the applicant's plan at a belated stage, citing regulatory provisions on the rejection of late EOIs. 4. The applicant's counsel argued for the consideration of their plan, pointing out the objective of maximizing the value of the Corporate Debtor's assets within the defined timelines. They referenced past orders by the Authority directing consideration of belated plans to support their case. 5. After considering the submissions, the Authority deliberated on the amended Regulation 36A and the jurisdiction under section 60(5) of the Code. The Authority acknowledged the RP's receipt of multiple plans and the ongoing CIRP process, but ultimately decided to allow the applicant's application, directing the RP to receive their resolution plan for COC consideration. 6. In allowing the application, the Authority imposed costs on the applicant for the delay in submission, emphasizing that the applicant should bear the expenses related to the consideration of their plan. The order directed the RP to receive the applicant's plan by a specified date and instructed the applicant to pay a designated amount towards resolution costs. 7. The judgment concluded by disposing of the application filed by the applicant, with instructions for communication of the order to the concerned parties and issuance of a certified copy upon compliance with formalities.
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