2021 (5) TMI 14 - Tri - Insolvency and Bankruptcy

Condonation of delay of 381 days in relation to the main Application filed seeking inter alia to institute and enquire into the conduct of the Resolution Professional - seeking declaration that CIRP culminating with the acceptance of the Resolution Plan of M/s. Hi-tech Bio Products Pvt. Ltd. as null and void and to direct to restart of the CIR process - HELD THAT - It is evident that the Resolution Plan itself has been approved by this Tribunal against which no appeal seems to have been preferred and even in relation to the rejection of the Applicants being declared as ineligible under Section 29(A) of IBC, 2016 even though Appeals have been preferred up to the highest Court of the land, no worthwhile relief has been granted to the Applicants herein. A Resolution Plan which stood approved by this Tribunal as per the averments contained by the 1st Respondent has been fully implemented in as much as the claimants have been settled as envisaged under the Resolution Plan. Pertaining to the allegations as made against the conduct of the Resolution Professional, it is required to be noted that the appropriate Authority for consideration of the same is the Regulator viz., IBBI, if at all the Applicants have any grievance, the same is required to be made with the IBBI in the capacity as a Regulator and not before this Tribunal so that if it is found true, appropriate action can be taken against the conduct of the Resolution Professional, who conducted the CIRP of the Corporate Debtor. There are no sufficient cause being given in the Application seeking for the condonation of delay of 381 days other than merely stating that due to administrative reasons, there has been a delay - application for COD dismissed.

Summary

Issues:
Delay condonation application for main application seeking to investigate Resolution Professional's conduct and declare CIRP null and void.

Analysis:
1. The Applicants filed an Application seeking to condone a 381-day delay in filing the main Application, which aimed to investigate the Resolution Professional's conduct and challenge the acceptance of the Resolution Plan by M/s. Hi-tech Bio Products Pvt. Ltd.
2. Allegations were made against the Resolution Professional for not providing necessary documents on time, leading to the discovery of serious errors in tax calculations and dues to the Electricity Board.
3. The State Sales Tax Department filed a case against the Resolution Professional for incorrect tax calculations, and the Applicants were only made aware of this after inspecting records in October 2019.
4. Respondent No. 2 contended that the Applicants were ineligible under specific sections of the IBC, and previous challenges to this decision were dismissed by the NCLAT and the Supreme Court.
5. The Resolution Plan submitted by M/s. Hi-tech Bio Products Pvt. Ltd. was approved by the Tribunal and no challenges were raised against this approval.
6. The Applicants invoked Section 87 of the IBC, which was deemed unsustainable for their case, and failed to provide sufficient reasons for the delay in filing the main Application.
7. The Resolution Professional highlighted that the Resolution Plan was successfully implemented, all creditors were paid, and commercial production commenced as per the approved plan.
8. Despite opportunities, the Applicants failed to submit necessary documents and plans, leading to rejection by the CoC under Section 29(A) of the IBC.
9. The Tribunal dismissed the Application for delay condonation, citing insufficient cause beyond administrative reasons, and no costs were awarded in this matter.