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2021 (2) TMI 1244 - Tri - Companies LawImplementation of approved Resolution Plan - HELD THAT - When the CoC invoked the Bank Guarantee, the issuing Bank, i.e. Banque De Luxembourg Bank informed the CoC that it is a non enforceable guarantee since already the Resolution Applicant has already deposited ₹ 10,000,000 in lieu of the Bank Guarantee. The Counsel for the RA also submitted that the approval from the Regulatory Authorities were obtained and they are ready to implement the plan as approved by this Bench. The Resolution Applicant assures that the balance sum of ₹ 10 crores will be infused within 2 weeks. No fruitful purpose presently would be served by invoking the Bank Guarantee. Since an amount of ₹ 10 crores has already been deposited against the Bank Guarantee, the CoC (State Bank of India) is directed to write to the Bank which have issued the Bank Guarantee for ₹ 10 crore releasing the Bank Guarantee - The CoC is directed to provide the Account details in which a sum of ₹ 10 crores would be deposited by the Resolution Applicant. The Registry is directed to list this Application on 19thFebruary, 2021 high on Board for compliance and further orders. Application disposed off.
Issues: Implementation of Resolution Plan, Non-enforceable Bank Guarantee, Compliance with CIRP cost and share issue, Account details for deposit
The Tribunal addressed the issue of the Resolution Applicant's failure to implement the approved Resolution Plan. The Resolution Applicant had already deposited ?10 crores instead of providing a Bank Guarantee as per the Plan's requirements. The Applicant committed to bringing in an additional ?10 crores within two weeks to fulfill CIRP cost and share issuance obligations. The Tribunal accepted this submission, directing the Committee of Creditors (CoC) to release the Bank Guarantee for ?10 crores, as the Applicant had already deposited the equivalent amount. The Tribunal considered the matter of a non-enforceable Bank Guarantee issued by Banque De Luxembourg Bank for ?10 crores. Upon invoking the Bank Guarantee, the Bank informed the CoC that it was non-enforceable due to the Resolution Applicant's prior deposit of ?10,000,000. The Resolution Applicant assured the Tribunal that the remaining ?10 crores would be infused within two weeks. Given the existing deposit, the Tribunal directed the CoC to write to the Bank for the release of the Bank Guarantee. The Resolution Applicant highlighted that the CoC had not provided the Bank Account Number for depositing the remaining ?10 crores. Consequently, the CoC was instructed to furnish the necessary Account details for the Resolution Applicant's compliance. The Tribunal ordered the Registry to list the Application for compliance and further orders on 19th February 2021. By addressing the issues of Plan implementation, Bank Guarantee enforcement, compliance with financial obligations, and providing necessary Account details, the Tribunal ensured progress towards resolving the matter effectively and in accordance with the approved Resolution Plan.
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