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2024 (10) TMI 1181 - AT - IBCRejection of application for time extension to implement resolution plan - Appellant is ready to deposit the balance amount of the Resolution Plan - HELD THAT - The entire amount has been deposited in the account of the Corporate Debtor, Liquidator shall distribute the amount to the Creditors as per the Resolution Plan. Appellant shall make payment of Rs.10.5 Lakhs to the Liquidator towards the liquidation cost within two weeks from today by a Bank Draft or by RTGS. Liberty granted to the Liquidator to file an Application before the Adjudicating Authority with regard to entitlement of fee, if any, which may be decided in accordance with law. In view of the fact that Financial Creditors have expressed their willingness to accept the amount of the Resolution Plan, the time as prayed was required to be extended by the Adjudicating Authority - the Order of the Adjudicating Authority set aside - appeal allowed.
Issues:
Appeal against rejection of application for time extension to implement resolution plan. Analysis: The appeal was filed against the rejection of an application seeking to exclude a specific period for the implementation of a resolution plan approved by the Adjudicating Authority. The Appellant contended readiness to deposit the balance amount of the resolution plan. The Bank of India, holding 67% vote shares, had no objection to the appellant making the payments within a specified timeframe. The Appellant was directed to deposit the entire balance amount within four weeks. The Bank of India reiterated its support for the exclusion of the time period for implementing the resolution plan, emphasizing the importance of resolving the corporate debtor rather than liquidation. The Appellant confirmed the payment of the balance amount in the corporate debtor's account. The liquidator mentioned incurring liquidation expenses and claimed entitlement to a fee. Other financial creditors requested distribution of the amount as per the plan, with the Appellant directed to pay the liquidator for incurred costs within two weeks. The liquidator was granted liberty to file an application regarding the entitlement of a fee. Considering the willingness of financial creditors to accept the resolution plan amount and the objective of corporate debtor revival, the Adjudicating Authority's order was set aside, and the appeal was allowed for the resolution and revival of the corporate debtor. In conclusion, the Appellate Tribunal allowed the appeal, overturning the Adjudicating Authority's decision and disposing of the appeal to ensure the revival and resolution of the corporate debtor. The resolution plan implementation was facilitated by directing the Appellant to deposit the balance amount and pay the liquidator for expenses incurred, with financial creditors supporting the distribution of funds as per the plan. The importance of resolving the corporate debtor's situation was emphasized throughout the judgment, highlighting the preference for resolution over liquidation.
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