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2019 (5) TMI 822 - AT - Insolvency and BankruptcyLiquidation - expiry of lime limit for resolution - case of appellant is that without placing the matter under provisions of Section 30(2) of the I B Code before the Committee of Creditors for voting, the Resolution Professional applied for liquidation - HELD THAT - The Corporate Insolvency Resolution Process against the Corporate Debtor was initiated on 9th January, 2018 and on 13th November, 2018, when the Resolution Professional filed Miscellaneous Application under Sections 33 34 of the I B Code by that time approximately 270 days had passed - the Adjudicating Authority having ordered for liquidation, it cannot be held to be illegal. It was informed to the Committee of Creditors on 5th October, 2018 but due to late submission of the Resolution Plan , the Committee of Creditors declined to consider the same - thus, the Resolution Plan submitted by M/s. Grandvalult Enterprises, Bengaluru was not submitted within time and therefore, the Resolution Plan of the said M/s. Grandvalult Enterprises, Bengaluru was not considered. We are not inclined to interfere with the impugned order dated 5th December, 2018, we direct the Liquidator to act in accordance with law - appeal disposed off.
Issues:
1. Appeal against order of liquidation under Insolvency and Bankruptcy Code, 2016. 2. Submission of Resolution Plan by Grandvalult Enterprises, Bengaluru. 3. Timeliness of Resolution Plan submission. 4. Liquidator's directive to act in accordance with law. Analysis: Issue 1: The appeal was filed against the order of liquidation passed by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016. The Appellate Tribunal noted that the Corporate Insolvency Resolution Process was initiated against the Corporate Debtor, and after approximately 270 days, the Resolution Professional applied for liquidation. The Tribunal found that the order for liquidation by the Adjudicating Authority was not illegal in the given circumstances. Issue 2 and 3: The Appellant contended that a Resolution Plan submitted by Grandvalult Enterprises, Bengaluru, complied with the provisions of the I&B Code and should have been placed before the Committee of Creditors for voting. However, the Resolution Professional applied for liquidation without presenting the Plan to the Committee. The Tribunal observed that the Resolution Plan was submitted after the deadline, and the Committee of Creditors declined to consider it due to the late submission. Issue 4: The Tribunal directed the Liquidator to act in accordance with the law, referencing a previous judgment. The Tribunal emphasized the importance of completing the liquidation process within a reasonable time frame, preferably within two years. It highlighted the need for the Adjudicating Authority to consider objections and ensure that the arrangement or scheme benefits the Corporate Debtor and stakeholders without discrimination. The Liquidator was instructed to take steps under Section 230 of the Companies Act, 2013, for compromise or arrangement proposals by creditors. In conclusion, the appeal was disposed of with the mentioned observations and directions, emphasizing the need for adherence to legal procedures and timelines in insolvency proceedings.
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