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2022 (10) TMI 524 - AT - Insolvency and BankruptcyValidity of Liquidation order passed - sum in the resolution plan remitted - HELD THAT - In view of the fact that the Appellant had Remitted a total sum of Rs.72 Crore to the 2nd Respondent / State Bank of India (Sole Committee of Creditor Member), in Terms of Settlement, and that fact is not Contradicted on the Respondents side, this Tribunal, to prevent an aberration of Justice and to permit the substantial cause of Justice, sets aside the Order of Liquidation dated 06.06.2022 in IA/196(CHE)/2022 in IBA/578/2019 passed by the Adjudicating Authority (National Company Law Tribunal, Special Bench II, Chennai), and directs the Adjudicating Authority (National Company Law Tribunal, Special Bench II, Chennai), to take on Record the Improved Resolution Plan dated 30.08.2022, which was submitted by the Appellant to the 2nd Respondent / State Bank of India (Sole Member of the Committee of Creditor) and to proceed further, as per the ingredients of the Insolvency Bankruptcy Code, 2016 and as per the Rules and Regulations that are in force. As regards the Exclusion of a Time, prayed for, by the Appellant, i.e., from 07.03.2022 till 28.09.2022 (205 Days), being the Time Spent before the Adjudicating Authority (National Company Law Tribunal, Special Bench II, Chennai) and the Period Spent from 06.06.2022, till this Date (13.10.2022), shall be Excluded, for the purpose of computing the Completion of Corporate Insolvency Resolution Process period, by the Adjudicating Authority (National Company Law Tribunal, Special Bench II, Chennai). Application disposed off.
Issues:
1. Challenge against the Order of Liquidation 2. Submission of Resolution Plan and payment details 3. Setting aside the Order of Liquidation 4. Continuation of the Liquidator as Resolution Professional 5. Exclusion of time for computing the completion period 6. Permission for the Bank to plead for appropriation Analysis: 1. The Appellant, a Suspended Director of a company, challenged the Order of Liquidation passed by the Adjudicating Authority. The Appellant contended that a total Resolution Plan of Rs.72 Crore was submitted, with an upfront payment of Rs.17.51 Crore followed by Rs.54.49 Crore. The Respondents acknowledged the receipt of the total sum. The Appellant sought to set aside the Order of Liquidation, which was not opposed by the Committee of Creditor or the Liquidator. 2. The Tribunal noted the receipt of Rs.72 Crore by the Committee of Creditor and set aside the Order of Liquidation to prevent injustice. The Tribunal directed the Adjudicating Authority to consider the Improved Resolution Plan submitted by the Appellant and proceed as per the Insolvency & Bankruptcy Code, 2016. The Liquidator was to continue as the Resolution Professional due to being in charge of the Corporate Debtor's operations. 3. The Appellant's request for the exclusion of time spent before the Adjudicating Authority and during the proceedings was granted for computing the completion period of the Corporate Insolvency Resolution Process. The Tribunal allowed the Bank to plead for the appropriation of the Rs.72 Crore before the Adjudicating Authority, with the final decision to be made in accordance with the law. 4. The Tribunal disposed of the appeal with no costs and closed the connected applications. The Contempt Case filed by the Appellant was dismissed following the disposal of the main appeal by the Appellate Tribunal.
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