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TMI Blog2020 (4) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... ure that the CIRP of both the Corporate Debtors - M/s. Adhunik Metaliks Limited and M/s. Zion Steel Limited now reaches finality, the Committee of Creditors , other Creditors etc., now have no objection and the liquidation will not be in the interest of both the Corporate Debtors - M/s. Adhunik Metaliks Limited and M/s. Zion Steel Limited , its employees etc., set aside the impugned order dated 9th July, 2019. Appeal allowed. - Company Appeal (AT) (Insolvency) No. 724 of 2019, 725 of 2019, 870 of 2019 - - - Dated:- 3-3-2020 - Justice S.J. Mukhopadhaya Chairperson And Justice Bansi Lal Bhat Member (Judicial) For the Appellant : Mr. Virender Ganda, Senior Advocate with Mr. Arvind Kumar Gupta, Ms. Henna George, Mr. Vishal Ganda, Ms. Shelly Khanna, Mr. Aman Choudhary and Mr. Saransh Kothari, Advocates., Mr. Joy Saha, Senior Advocate with Ms. Misha and Mr. Nikhil Mathur, Advocates For the Respondents : Mr. Joy Saha, Senior Advocate with Ms. Misha and Mr. Nikhil Mathura, Advocates. Mr. Kushal Sarkar and Mr. Vikas Mehta, Advocates for IBBI., Mr. Virender Ganda, Senior Advocate with Mr. Arvind Kumar Gupta, Ms. Henna George, Mr. Vishal Ganda, Ms. Shelly Khanna, Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse Group Pte. Ltd. initially moved before the Adjudicating Authority bringing certain facts of non-implementation of certain agreements in terms of the Resolution Plans by the Committee of Creditors , which having rejected, it preferred the appeals before this Appellate Tribunal. 8. At that stage, the appeal of MSTC Limited was pending. The case of Liberty House Group Pte. Ltd. was also heard subsequently. 9. On 15th March, 2019, this Appellate Tribunal while rejected the prayer of MSTC Limited , gave opportunity to the Appellant- Liberty House Group Pte. Ltd. for the purpose of compliance of the order and implementation of the plan and provided another 30 days to make upfront payment in terms of the Resolution Plan . It was observed that on failure, it was open to the Adjudicating Authority, Kolkata Bench, Kolkata, to pass appropriate order in accordance with law. 10. For some reasons, Liberty House Group Pte. Ltd. failed to make upfront payment within 30 days of extended period. At that stage, the Committee of Creditors moved an application for re-initiation of the Corporate Insolvency Resolution Process and to allow it to consider the other Resoluti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of the Committee of Creditors and others and we are of the view that in the interest of the stakeholders/financial creditors, operational creditors (employees) if the period of compliance of both the resolution plans of Adhunik Metaliks Ltd. (one Corporate Debtor) and Zion Steel Ltd. (another Corporate Debtor ) are extended, who otherwise will suffer Liquidation , we allowed the Successful Resolution Applicant - Adhunik Metaliks Ltd. to file undertaking giving timeframe of compliance of both the plans by depositing the amount as offered in their approved plans. 3. Pursuant to the earlier, an affidavit has been filed on behalf of Liberty House Group Pte. Ltd. on 20th January, 2020 which reads as follows: 1. I am the Authorized Signatory of the Appellant/Resolution Applicant Company and I say that I am fully conversant with the facts and circumstances of the case and am duly empowered and competent to swear and affirm this affidavit. 2. I state that the information is based on the record of Resolution Applicant Company and information received and believed to be true and correct from the said record. The legal submissions are based on legal advice re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultaneously, the CoC should deposit the signed and executed Deed of Debt Assignment of both Adhunik Zion as per agreed format with the Registrar, NCLAT for simultaneous exchange as per Resolution Plans. v. NCLAT can release the said deposited amounts to the CoC and simultaneously hand over the Debt Assignment Deeds to Liberty House and all rights over the Debt, Charges of Lenders etc. against the Corporate Debtors shall stand transferred to Liberty House as per Resolution Plans. vi. The Resolution Applicant shall make the payment of CIRP costs and Operational Creditors of Adhunik and Zion as per the Resolution Plans. vii. Resolution Applicant is ready and willing to pay maximum of ₹ 10 crores additional amount towards any and all contingencies arising from this resolution as a goodwill gesture. viii. The Resolution Plans shall be deemed to have been implemented by Liberty House without any default on payment of aforesaid amount to the Financial Creditors by Liberty House. ix. Liquidation order passed by Ld. Adjudicating Authority in the matter of Adhunik Zion to be set aside. The entire Resolution Plans approved by the Ld. Adjudicating Authority s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich reads as follows: O R D E R 17.02.2020 Mr. Virendra Ganda, learned Senior Counsel for the Appellant(s) submits that the amount in terms of the earlier order dated 21st January, 2020 has been paid. Mr. Joy Saha, learned Senior Counsel appearing on behalf of Committee of Creditors has also accepted the same. In view of the development, the order of Liquidation is stayed and the Liquidator will function as Resolution Professional . The only question, which is required to be determined, is about the corporate insolvency resolution process cost . According to the Appellant, it has already paid the amount. The table of payments have been provided by the Appellant, which is as follows: In view of the above development, we allow the Resolution Professional / Liquidator to hand over the records, control etc. to the Appellant ( Successful Resolution Applicant Liberty House Group Pte. Ltd.). Parties will also ensure to implement the plan in its letter and spirit. The detailed affidavit(s) be filed by the Appellant and the Committee of Creditors within a week. Rest of the issues will be decided on the next date. Post the case for o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to ensure that the CIRP of both the Corporate Debtors - M/s. Adhunik Metaliks Limited and M/s. Zion Steel Limited now reaches finality, the Committee of Creditors , other Creditors etc., now have no objection and the liquidation will not be in the interest of both the Corporate Debtors - M/s. Adhunik Metaliks Limited and M/s. Zion Steel Limited , its employees etc., set aside the impugned order dated 9th July, 2019. Both the Resolution Plans be implemented in its letter and spirit. The claim of all the Creditors stand settled. Control and records of both the Corporate Debtors - M/s. Adhunik Metaliks Limited and M/s. Zion Steel Limited have already been handed over to the Successful Resolution Applicant by Committee of Creditors / Monitoring Committee/ Resolution Professional . Committee of Creditors / Monitoring Committee/ Resolution Professional stand discharged. 21. Mr. Vikas Mehta, Advocate has appeared on behalf of the Insolvency and Bankruptcy Board of India (IBBI). Let a copy of this order be handed over to the Chairperson, IBBI to enable the IBBI to withdraw the complaints, if any, made before the Special Judge. Company Appeal (AT) (Insolve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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