2021 (3) TMI 1324 - Tri - Insolvency and Bankruptcy

Seeking extension of time for making payments as per the approved resolution plan - HELD THAT - The resolution applicant has made substantial payments, however, due to COVID 19 pandemic there is considerable delay in honouring the commitments. Hence, this application is made seeking extension of time. The Ld. counsel further states that the resolution applicant and State Bank of India are negotiating for settlement, and that the settlement talks are in final stages. Considerable amount has been paid to SBI, and substantial payment shall be made on or before 31.03.2021. The negotiations are in final stages. The Ld. Counsel also states that there were various difficulties from different quarters, hence, the Resolution Applicant had to face lot of hardships and difficulties, implementing the plan, consolidating the resources of corporate debtor, people etc. Be it as it may, the applicant shall make all endeavours to make considerable payments on or before 31.03.2021, to prove its bona fide. List this application, along with all other pending applications on 12.04.2021 for hearing.

Summary

Issues:
1. Application filed by State Bank of India seeking liquidation of Corporate Debtor taken over by a successful resolution applicant.
2. Application filed by Resolution Applicant seeking extension of time for making payments as per the approved resolution plan.

Analysis:
1. The State Bank of India filed an application (IA No. 333/CB/2020) seeking the liquidation of the Corporate Debtor, which has been taken over by a successful resolution applicant. The implementation of the resolution plan is currently in progress. This application indicates a significant development in the ongoing resolution process, highlighting the need for the Tribunal to address the issue of liquidation in light of the new circumstances.

2. The Resolution Applicant filed an application (CA No. 58/CTB/2020) requesting an extension of time until 31.10.2021 for making payments as per the approved resolution plan. The Senior Counsel representing the applicant, Mr. Ratnanko Banerjee, explained that while substantial payments have been made, delays have occurred due to the COVID-19 pandemic. The applicant is in negotiations with the State Bank of India for a settlement, with talks in the final stages. The applicant faces challenges in implementing the plan and consolidating resources, but is committed to making considerable payments by 31.03.2021 to demonstrate good faith. The Tribunal decided to list this application, along with other pending applications, for a hearing on 12.04.2021, indicating a need for further deliberation on the extension of time sought by the Resolution Applicant.

Overall, the judgment addresses the pressing issues of liquidation and payment extensions in the context of a corporate insolvency resolution process. It reflects the complexities and challenges faced by both the State Bank of India and the Resolution Applicant, emphasizing the need for careful consideration and a balanced approach in resolving the matter effectively.