2020 (5) TMI 66 - AT - Insolvency and Bankruptcy

Condonation of delay in the submission of the Resolution Plan - condonation sought on the ground that Applicant is not in a position to reasonably evaluate the liabilities and claims that may devolve upon the said Applicant- Sify Technologies Limited - HELD THAT - As per third proviso to Section 12, now 90 days more time has been given to complete the Resolution Process from the date the aforesaid amendment has come into force i.e. from 16th August, 2019 - In view of the aforesaid development, as further time has been allowed under the I B Code , we are not inclined to interfere with the impugned order dated 7th August, 2019 merely on the ground that the Appellant will have to face the consequence. If one or other Resolution Plan is found to be more viable and feasible and will maximise the assets of the Corporate Debtor , balancing all the stakeholders by maximising the assets of the Financial Creditor / Operational Creditor and others, no right accrues to any individual Applicant(s) to stall such process. Appeal dismissed.

Issues:
1. Consideration of additional information for submission of Resolution Plan by Sify Technologies Limited.
2. Direction to Committee of Creditors to consider Resolution Plan by Honest Orbit Ventures.
3. Admission of claim by Government Employee Provident Fund Employees Organisation.
4. Challenge to impugned order dated 7th August, 2019.
5. Objections to Resolution Plan submitted by Sify Technologies Limited.
6. Interpretation of Section 12 of the Insolvency and Bankruptcy Code.

Analysis:

1. The judgment pertains to a Corporate Insolvency Resolution Process involving Print House (India) Private Limited. An application was filed by Sify Technologies Limited seeking additional information from the Resolution Professional to submit a Resolution Plan. The delay in submission was requested to be condoned due to difficulties in evaluating liabilities. The Adjudicating Authority directed the Committee of Creditors to consider the Resolution Plan submitted by Sify Technologies Limited along with objections.

2. Another Resolution Applicant, Honest Orbit Ventures, filed a Miscellaneous Application to direct the Committee of Creditors to consider their Resolution Plan submitted within the prescribed time. The Adjudicating Authority allowed this application, leading to a meeting being convened for the consideration of the Resolution Plan.

3. A third Miscellaneous Application filed by the Government Employee Provident Fund Employees Organisation was entertained and allowed, admitting the claim of the Government Department. The impugned order dated 7th August, 2019, which included these decisions, was challenged in the appeal.

4. The Appellant, a Resolution Applicant, raised objections to the Resolution Plan submitted by Sify Technologies Limited, citing unrealistic aspects due to lack of information. The counsel for the Appellant argued that the Resolution Plan submission deadline was met, and the plan by Sify Technologies Limited should not be considered.

5. The judgment delves into the recent amendment of Section 12 of the Insolvency and Bankruptcy Code, extending the time for completing the Resolution Process. The Tribunal declined to interfere with the impugned order based on this development, emphasizing the importance of maximizing assets for all stakeholders involved. The appeal was dismissed without costs, as no merit was found.

This detailed analysis covers the various issues addressed in the judgment, including the consideration of Resolution Plans, admission of claims, challenges to orders, objections to plans, and the interpretation of relevant legal provisions.

← Previous Next →