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2021 (7) TMI 499 - Tri - Insolvency and BankruptcySeeking permission by suspended director of the Corporate Debtor to submit a Resolution Plan to the R.P and members of the COC - Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - Learned counsel for the respondent stated that since the CIR Process is to be completed on or before 23.7.2021, if this Tribunal grants a short period to the applicant to submit the Resolution Plan, the Resolution Professional has no objection in accepting the Resolution Plan for placing before the CoC for its consideration. Learned counsel for the applicant stated that he may be granted a short time to submit the Resolution Plan bringing to the notice of the Resolution Professional the Certificate obtained by the applicant as an MSME. In view of the fact that the CIR Process is to be completed on 23.7.2021, the applicant is granted permission to submit the Resolution Plan within a week from the date of receipt of this order. If the applicant submits such a Resolution Plan, the Resolution Professional shall place the Resolution Plan before the Committee of Creditors for their consideration and further steps in the matter shall be taken without further delay, so that the CIR Process can be concluded in time. Application disposed off.
Issues:
1. Application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 by the suspended director seeking permission to submit a Resolution Plan. 2. Eligibility of the suspended director to submit a resolution plan based on the classification of the Corporate Debtor as an MSME. 3. Consideration of the belated Resolution Plan by the Committee of Creditors (CoC) and Resolution Professional. 4. Granting permission to the applicant to submit the Resolution Plan within a specified timeline. Issue 1: Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 The suspended director of the Corporate Debtor filed an application seeking permission to submit a Resolution Plan under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The application requested approval to allow the suspended director to present a Resolution Plan to the Resolution Professional and members of the Committee of Creditors (CoC). Issue 2: Eligibility of the suspended director to submit a resolution plan The applicant, as the suspended director of the Corporate Debtor, claimed eligibility to submit a Resolution Plan based on the revised classification of the Corporate Debtor as a medium enterprise under the Ministry of Micro, Small and Medium Enterprises notification. The applicant argued that certain clauses of Section 29A of the Code would not be applicable to the Corporate Debtor, making the suspended director eligible to propose a resolution plan. Issue 3: Consideration of the belated Resolution Plan The Resolution Professional informed that the applicant submitted a belated Resolution Plan without prior approval from the Tribunal. The Committee of Creditors (CoC) considered the request but required explicit permission from the Tribunal to accept the late submission. Despite extensions granted, the applicant failed to comply with the timeline, leading the CoC to proceed with the examination of other resolution plans due to the impending completion date of the Corporate Insolvency Resolution Process (CIRP). Issue 4: Granting permission to submit the Resolution Plan After hearing arguments from both sides, the Tribunal granted permission to the applicant to submit the Resolution Plan within a week from the date of the order. The Resolution Professional was directed to present the plan to the Committee of Creditors promptly for their consideration to ensure the timely conclusion of the CIR Process. It was emphasized that no further extensions would be granted for the submission of the Resolution Plan. In conclusion, the Tribunal disposed of the application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, allowing the suspended director to submit a Resolution Plan within a specified timeline. The decision was based on the eligibility of the suspended director as an MSME and the necessity to conclude the Corporate Insolvency Resolution Process without further delays.
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