9911796707
TMI Blog2021 (7) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... Resolution Plan, grant of any further time is not called for in this matter - application dismissed. - IA/37/(KOB)/2021 in IBA/21/KOB/2019 - - - Dated:- 30-6-2021 - Ashok Kumar Borah, Member (J) And Satya Ranjan Prasad, Member (T) For the Appellant : Jagriti Sanghi, Advocate For the Respondents : Jasin Jose, RP and Sunil Shanker, Advocate ORDER 1. The Successful Resolution Applicant Mr. Jose Pradeep has filed this IA/37/KOB/2021 under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (hereinafter referred as I B Code, 2016) read with Rule 11 of the National Company Law Tribunal Rules, 2016 (hereinafter referred as rules ) against South Indian Bank and others seeking the following reliefs:- 1. Resolution Plan be modified by incorporating the mutually agreed position regarding the grace period. 2. The Applicant be permitted to follow the revised timeline based on mutual agreement between the parties during the 9th CoC meeting or; 3. Considering the medical condition of the Applicant, grant an extension of two months to the timelines proposed under the Resolution Plan. 2. It is stated that on finalisation of their Application as Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the 10th CoC meeting. Unfortunately, the applicant could not attend that CoC meeting due to post Covid illness, though the notice of the meeting was received by him. In this meeting the CoC approved the Resolution Plan and the Resolution Professional presented the same before the Tribunal for approval. Vide order dated 08.01.2021, the Tribunal approved the Resolution Plan. In the final approved Resolution Plan under the head 'Infusion of Funds by Resolution Applicant' it is stated as under: - The Resolution Plan proposes that the amount proposed in this Resolution Plan for settling all the dues of the Corporate Debtor at ₹ 26.75 crores would be sourced by the Resolution Applicant in the following manner: (I) Upfront contribution towards performance guarantee. (II) Immediate settlement of CIRP Interim Fund with 2 weeks of approval of Resolution Plan by AA (III) Settlement of Operational Creditors including Employees Workmen's Dues, Statutory Dues and Operational Creditors at least 7 days before the payment is made to the Financial Creditors. (IV) Settlement of 10.00% of approved financial claims to Financial Creditors on paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses he requires some grace period, to be mutually agreed 30 days or till 19.03.2021. There was no agreement on the grace period in the minutes of the meeting recorded by the Resolution Applicant. Therefore, Respondents seeks the leave of the Tribunal to rely upon the minutes of the meetings for their true intent and purport. It was further contended that there was never a mutually agreed cure period as submitted by the Applicant. The request of the applicant for a mutually agreed cure period for the final payment as per Resolution Plan subject to maximum of 19.03.2021 was recorded. 9. It is also stated that pursuant to the default committed, the performance guarantee was invoked on 04-02-2021. It is clear from the events that the Resolution Applicant has found it difficult to comply with his commitments under the Resolution Plan, and the same clearly belies of his financial capacity. The Resolution Applicant had only made payment of interim fund within two weeks of approval of the Resolution Plan. The said amount approximating ₹ 1.85 Crores is less than 10% of the commitment of the Resolution Applicant to the financial creditors under the Resolution Plan. 10. In the rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olution Applicant in the following manner: (i) Upfront contribution towards performance guarantee. (ii) Immediate settlement of CIRP Interim Fund with 2 weeks of approval of Resolution Plan by AA. (iii) Settlement of Operational Creditors including Employees Workmen Dues, Statutory Dues and Operational Creditors at least 7 days before the payment is made to the Financial Creditors. (iv) Settlement of 10.00% of approved financial claims to Financial Creditors paid on or before 30th November, 2021 or 30 days from the date of approval of the Resolution Plan by AA, whichever is later. (v) Settlement of balance 90.00% approved financial claims to Financial Creditors paid on or before 31 January, 2021 or 90 days from the date of approval of the Resolution Plan by AA, whichever is later. 15. However, the Resolution Applicant has failed to honour his commitments under the Resolution Plan. The Resolution Applicant had only made payment of interim fund within two weeks of the approval of Resolution Plan to the tune of ₹ 1.85 Crores which is less than 10% of the committed amount in the Resolution Plan. On some pretext or the other he was going on seeking extension of the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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