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2023 (4) TMI 445 - AT - Insolvency and BankruptcyDiminishing the possibility of implementation of the Resolution Plan, and in the absence of an Approval, from NHAI - despite its all possible endeavours NHAI, had declined to agree to a Terms of Resolution Plan - HELD THAT - It is to be remembered that the Terms of Resolution Plan, being implemented, ofcourse, depends upon the contingent on execution of necessary documents, by NHAI (inclusive of the Supplementary Agreement) - In any event, the refusal on NHAI, in not accepting the Terms of Resolution Plan, cannot in any manner, be attributed, to the Appellant, which took all reasonable and commercially possible steps, to fulfil the Conditions Precedent. That apart, it cannot be brushed aside that the Appellant, had not claimed a relief of Cancellation of the Resolution Plan. Instead, it was sought for by the 1st Respondent, in its own commercial wisdom. This Tribunal, on an entire conspectus of the attendant facts and circumstances of the case, in a holistic fashion, to prevent an aberration of justice, and to secure the ends of justice, hereby Expunges, the Observations / Findings (including the aspect of Initiation of Proceedings, under Section 74 (3) of the I B Code, 2016), made by the Adjudicating Authority / Tribunal - Application disposed off.
Issues involved:
The judgment addresses the issue of setting aside findings in the Impugned Order dated 08.04.2022, passed by the Adjudicating Authority, National Company Law Tribunal, Hyderabad Bench, Hyderabad, in IA No. 79 / 2022 in CP(IB) No. 262 / 7 / HDB / 2018, regarding alleged failure/default on the part of the Appellant. Details of the Judgment: The Appellant expressed willingness to forego its prayer for restoration of the bank guarantee or the amounts recovered by Respondent No.1, with the condition that adverse observations and directions against the Appellant are set aside, and no further proceedings are initiated. The Appellant clarified that it does not admit fault but is ready to waive its claim to resolve all issues. The Appellant contended that NHAI's refusal to agree to the Terms of Resolution Plan hindered its implementation, making it impossible to revive the Corporate Debtor. The Appellant argued that the Resolution Plan could not be implemented within the stipulated period due to NHAI's resistance to executing the Supplementary Agreement. The Appellant maintained that it should not be held responsible for the non-implementation of the Resolution Plan, emphasizing NHAI's crucial role in the process. Despite NHAI's refusal, the Appellant asserted it took all reasonable steps to fulfill the Conditions Precedent. Moreover, the Appellant did not seek relief for the cancellation of the Resolution Plan, which was requested by the 1st Respondent. Considering these factors and the lack of objection from the Respondents, the Tribunal decided to expunge/set aside the findings in the Impugned Order to prevent an aberration of justice and secure the ends of justice. Consequently, the Tribunal expunged the observations/findings made by the Adjudicating Authority in the Impugned Order, including the initiation of proceedings under Section 74 (3) of the I & B Code, 2016, in specified paragraphs. The Comp. App (AT) (CH) (INS.) No. 136 of 2022 was disposed of with no costs, and any connected pending Interlocutory Applications were closed.
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