2023 (7) TMI 1349 - AT - Insolvency and Bankruptcy

Imposition of moratorium - Existence of two Orders on record of allowing two separate Resolution Plans - HELD THAT - Let Notice be issued to the Respondents. At this stage, Sh. VVN Raju accepts Notice on behalf of the Respondent No. 2 (Corporate Debtor). Sh. HS Hredai accepts Notice on behalf of Respondent No. 3 - Let Notice be also issued to Respondent No. 4, the Erstwhile Committee of Creditors. Necessary requisites etc., and the process fee shall also be filed for the date already fixed. Counsel for Respondent No. 4 be also served through email which shall be provided by Counsel for the RP to the Registry by Monday i.e., 17.07.2023. List this matter on 31st July, 2023 and this matter should be shown in the list of Hearing After Notice.

Summary

Issues Involved:
The issues involved in the judgment are the imposition and lifting of the Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, approval of Resolution Plans, extension of time for inviting fresh Expression of Interest (EoI), dismissal of applications, and the challenge to the orders passed by the Adjudicating Authority.

Imposition and Lifting of Moratorium:
The Bank of India filed an Application under Section 7 of the Code against the Corporate Debtor, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) and imposition of Moratorium under Section 14. The Appellant's Resolution Plan was initially approved, and the Moratorium was lifted. However, subsequent events led to the filing of applications for extension of time and fresh EoI, raising questions about the reinstatement of the Moratorium.

Approval of Resolution Plans and Extension of Time:
The Appellant submitted a Resolution Plan that was approved by the Committee of Creditors and the Adjudicating Authority. However, the Appellant failed to fulfill the necessary conditions, leading to the filing of applications for extension of time. The RP sought an extension for inviting fresh EoI, which was ultimately granted by the Adjudicating Authority, directing the RP to start the CIRP afresh.

Dismissal of Applications and Challenges to Orders:
Several applications were filed and dismissed throughout the proceedings, including challenges by the Appellant against orders related to extension of time and approval of new Resolution Plans. The Appellant raised concerns about the imposition and lifting of the Moratorium, legitimate expectations, and lack of opportunity to present relevant facts.

Notice and Further Proceedings:
In light of the arguable points raised in the Appeal, the Tribunal intended to issue Notice to the Respondents for a detailed hearing. Notice was accepted on behalf of the Respondents, and directions were given for filing necessary requisites, providing a complete Paper Book, and scheduling further proceedings. The matter was listed for a future date, with proceedings stayed until then.