2019 (5) TMI 1850 - Tri - Insolvency and Bankruptcy

Seeking additional time of 30 days for filing the affidavit stating its acceptance or rejection of the modifications in terms of order - HELD THAT - It is pertinent to mention that after General Elections 2019 is over and the new Government is to be formed on May 30, 2019. Modification of the resolution plan may have financial implications, which requires approval from different Departments of Government of India ; therefore, we are of the considered opinion that time should be allowed for filing affidavit of acceptance/rejection of modified resolution plan on this basis the applicant has sought 30 days - We think it appropriate to grant 30 days for filing an affidavit, but this will be treated as the last opportunity, failing which, we will be forced to pass the liquidation order under section 33 of the IBC, 2016. Till then, RP will look after the work of the corporate debtor with effect from today. Learned counsel representing unsuccessful resolution applicant Adani Port raised objections against granting an extension of 30 days' times. List on July 2, 2019.

Summary

Issues:
1. Request for additional time by the successful resolution applicant to file an affidavit regarding acceptance or rejection of modifications in the resolution plan.
2. Requirement of internal approvals for the Government of India undertaking before proceeding with the resolution plan.
3. Financial implications of the resolution plan modifications and the need for approval from various government departments.
4. Granting of a 30-day extension for filing the affidavit and consequences of failure to do so.

Analysis:

Issue 1: Request for additional time by the successful resolution applicant
The successful resolution applicant, Jawaharlal Nehru Port Trust (JNPT), filed M. A. No. 1853 of 2019 seeking an extension of 30 days to file an affidavit regarding its acceptance or rejection of modifications in the resolution plan. The Tribunal had directed the resolution applicant to file an affidavit regarding the modifications within a specified timeline, and JNPT requested additional time to evaluate the impact of the modifications comprehensively.

Issue 2: Requirement of internal approvals for the Government of India undertaking
As a Government of India undertaking, JNPT needed to follow a specific procedure to obtain internal approvals, including from the Ministry of Shipping, Ministry of Finance, and other relevant government departments before proceeding with the resolution plan. The financial implications of the modifications necessitated consultations and approvals at the highest levels of the Government of India.

Issue 3: Financial implications and approval process
The Tribunal acknowledged that the modification of the resolution plan could have significant financial implications, requiring approvals from different departments of the Government of India. With the General Elections over and the formation of a new government imminent, JNPT needed time to secure the necessary approvals and evaluate the impact of the modifications effectively.

Issue 4: Granting of a 30-day extension and consequences
Considering the circumstances, the Tribunal granted JNPT a 30-day extension to file the affidavit but emphasized that it would be the last opportunity. Failure to comply within the extended timeline would result in the Tribunal passing a liquidation order under section 33 of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional (RP) was tasked with overseeing the corporate debtor's operations until the next hearing scheduled for July 2, 2019.

This detailed analysis of the judgment highlights the key issues addressed by the Tribunal concerning the request for additional time, internal approval requirements, financial implications, and the granting of an extension for filing the affidavit, emphasizing the consequences of non-compliance.