2018 (7) TMI 2157 - AT - Insolvency and Bankruptcy

Liquidation of Corporate Debtor - no viable Resolution Plan placed on record - HELD THAT - Today, learned counsel for the Appellant reiterated the arguments as was made in the earlier date that there were Resolution Plans though there is nothing on the record in support of such arguments. Even if it is presumed that there were some other place but if they were not in accordance with Section 30(2) were not to be placed before the Committee of Creditors . In fact, the Resolution Plans were taken into consideration but the Committee of Creditors held that there is no viable Resolution Plan . In this situation, the Committee of Creditors was not required to request for more time than 180 days. We find that in absence of any viable plan, the Adjudicating Authority has rightly ordered for liquidation of the Corporate Debtor . Appeal dismissed.

Summary

Issues:
1. Dispute over liquidation order by the Adjudicating Authority.
2. Approval of Resolution Plan by Committee of Creditors.
3. Existence of viable Resolution Plan.
4. Adherence to Section 30(2) requirements.
5. Decision on liquidation of Corporate Debtor.

Analysis:

1. The Appellant challenged the order of liquidation passed by the Adjudicating Authority, contending that there were Resolution Plans available. The Appellate Tribunal noted the absence of concrete evidence supporting the existence of these plans. Despite the Appellant's arguments, the Committee of Creditors unanimously recommended liquidation due to the lack of a viable Resolution Plan. The Tribunal found that without a viable plan, the Adjudicating Authority's decision for liquidation was appropriate, leading to the dismissal of the appeal.

2. The Resolution Plan submitted was not approved by the Committee of Creditors, as confirmed by their unanimous recommendation for liquidation. The Appellant argued that the Board of Directors, if given the chance, could have presented a Resolution Plan. However, the Respondent emphasized the absence of any viable Resolution Plan or eligible Resolution Applicant. The Tribunal, after considering these arguments, upheld the Committee of Creditors' decision and found no grounds to overturn the liquidation order.

3. The Appellant reiterated claims of the existence of Resolution Plans, but failed to provide substantial evidence to support these assertions. The Tribunal highlighted that even if such plans existed, they were not in compliance with Section 30(2) requirements and were not presented to the Committee of Creditors. The absence of a viable plan led to the Committee's decision and the subsequent order for liquidation by the Adjudicating Authority.

4. In the absence of a concrete and viable Resolution Plan meeting the necessary legal criteria, the Adjudicating Authority's decision to order liquidation of the Corporate Debtor was deemed appropriate by the Appellate Tribunal. The Tribunal emphasized the importance of adherence to statutory provisions and the lack of compelling evidence to support the Appellant's claims regarding Resolution Plans, ultimately resulting in the dismissal of the appeal.

5. The Appellate Tribunal dismissed the appeal challenging the liquidation order, emphasizing the lack of a viable Resolution Plan and the Committee of Creditors' unanimous recommendation for liquidation. The Tribunal found no merit in the Appellant's arguments, leading to the affirmation of the Adjudicating Authority's decision regarding the liquidation of the Corporate Debtor, with no costs imposed.