2020 (9) TMI 1146 - Tri - Insolvency and Bankruptcy

Implementation of approved ResoIution Plan on or before the extended date - HELD THAT - The prayer for reversal of the money to the Successful Resolution Applicant in the event of the dismissal order from the Hon'ble Apex Court cannot be granted at this stage only on speculations, Accordingly, the said prayer is rejected at this stage. It is expected that the Successful Resolution Applicant will implement the approved resolution plan on or before the extended date i.e. 30.09.2020. Application disposed off.

Summary

Issues:
1. Application filed by the erstwhile Committee of Creditors (COC) under Section 60(5) of the IBC for direction to the Successful Resolution Applicant to implement the approved resolution plan by a specified date.
2. Prayer for reversal of money paid by the Successful Resolution Applicant if the resolution plan is set aside by the Hon'ble Apex Court.

Analysis:
1. The Tribunal considered an application filed by the erstwhile COC under Section 60(5) of the IBC, seeking direction for the Successful Resolution Applicant to implement the approved resolution plan by the extended date of 30.09.2020. The applicant argued that the appeal before the NCLAT had been dismissed, emphasizing the need for timely implementation. The resolution applicant, represented by counsel, assured readiness to implement the plan. The Tribunal, after hearing both parties, noted that the prayer for reversal of money in case of a dismissal order from the Hon'ble Apex Court could not be granted based on speculations. Consequently, the prayer was rejected, and it was expected that the Successful Resolution Applicant would adhere to the implementation timeline.

2. The second issue pertained to the prayer for the reversal of the entire amount paid by the Successful Resolution Applicant if the resolution plan faced challenges in higher courts. The Tribunal, while acknowledging the concern raised by the erstwhile COC, emphasized that such a request could not be entertained merely on speculative grounds. The resolution applicant's commitment to implementing the plan within the stipulated timeframe was highlighted, and the Tribunal directed the Successful Resolution Applicant to adhere to the agreed terms and conditions for plan implementation by the extended date of 30.09.2020. Consequently, the Tribunal disposed of the application, expecting compliance with the resolution plan within the specified timeline.