2019 (9) TMI 1098 - SCH - Insolvency and Bankruptcy

Failure of Resolution plan - non-fulfillment of the commitment by Liberty House - completion of resolution plan within 90 days - Section 12 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - We permit the Resolution Professional to invite fresh offers within a period of 21 days. Let steps be taken by the Resolution Professional by tomorrow i.e. by 25.09.2019 for invitation of the fresh offers in accordance with the rules. Within 2 weeks thereafter, the Committee of Creditors shall take a final call in the matter and the decision of the Committee of Creditors and the offers received be placed before this Court on the next date of hearing for consideration. List the matter on 05.11.2019.

Summary

Issues:
1. Failure of resolution plan by Liberty House
2. Provisions of Section 12 of the Insolvency and Bankruptcy Code, 2016
3. Amendment Bill, 2019 and its impact on resolution process timeline
4. Decision in "Arcelormittal India Pvt. Ltd Vs. Satish Kumar Gupta and Ors."
5. Fresh offers invitation by Resolution Professional
6. Timeline for submission of fresh offers
7. Committee of Creditors' final decision process
8. Next hearing date and submission deadlines

Analysis:
1. The judgment addresses the failure of a resolution plan by Liberty House for Amitek Auto Limited, leading to the consumption of time beyond the provisions of Section 12 of the Insolvency and Bankruptcy Code, 2016. The Solicitor General highlighted the third proviso of the Amendment Bill, 2019, allowing completion of the resolution process within 90 days from the Amendment Act's commencement, up to 15th November, 2019. Reference was made to the case of "Arcelormittal India Pvt. Ltd Vs. Satish Kumar Gupta and Ors." for context.

2. Without a final decision on the matter, the parties agreed to make another effort to resolve the issue, considering expressions of interest from eight other parties. The Resolution Professional was permitted to invite fresh offers within 21 days, instead of the earlier timeline, to meet the 15th November deadline. The Committee of Creditors was directed to make a final decision within two weeks from the fresh offers' submission, to be presented in the next hearing on 05.11.2019.

3. Additionally, another civil appeal was detagged, scheduled for a separate hearing on 03.10.2019. Written submissions were required to be filed by 30.09.2019, ensuring a systematic and timely process for addressing the legal complexities and resolving the issues at hand. The court's meticulous approach in managing the resolution process and timelines reflects a commitment to upholding the legal framework and ensuring fair proceedings for all parties involved.