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TMI Blog2021 (2) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Tribunal may deem fit and proper in the facts and circumstances of this case. Interim Relief: 5. To direct the Respondents not to conduct any COC meetings or processed further in order to finalize the Resolution Plan till the matter is finally disposed of by the Hon'ble NCLAT. 2. The Learned Counsels representing for both sides are present. The Counsel of the Petitioner has submitted that this IA has been filed on 19.11.2020 serving a copy upon the Respondents. 3. It is stated that the Petitioner is the promoter, shareholder and chairman and Managing Director (suspended of the Corporate Debtor -- National Plywood Industries Ltd. presently undergoing CIRP). 4. That the Respondent No. 1 filed an application under Section 7 of Insolvency and Bankruptcy Code, 2016, being C.P. No. (IB)/09/GB/2019, against the Corporate Guarantor -- National Plywood Industries Ltd. and the same was admitted by this Tribunal on 26.08.2019, and the Respondent No. 2 was appointed as Interim Resolution Professional and, on 08.11.2019, Respondent No. 2 was confirmed as Resolution Professional of the Corporate Debtor. 5. That the Hon'ble Supreme Court vide its order dated 20.01.2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as ANNEXURE -- A4. 11. That there is another aspect which disentitles the Respondents to proceed in the matter until the final judgment is passed by the Hon'ble NCLAT after the order of admission was set aside by the Hon'ble Apex Court by its judgment dated 20.01.2020. The process under the IBC, once set in motion, is irreversible and leads to exceptional and serious consequences, which the Corporate Debtor is already going through. A running business which has made no default, has been put under the resolution process and is undergoing huge financial loss as well as loss of opportunities in the hands of the Respondent No. 2. It is pertinent to mention that after the set aside order of the Hon'ble Supreme Court, the CIRP is continuing without any order of admission of Section 7 application filed by the Respondent No. 1. The actions that are continuing cannot be reversed and the Corporate Debtor cannot be compensated in any manner. Copy of the financial statement for FY 2019 -- 2020 depicting the periods before and under CIRP process is attached with the application marked as ANNEXURE - A5. 12. That on the other hand, the Principal Borrower offered to pay the balance d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of dates and the same should not be permitted by this Tribunal till the pronouncement of the judgment by the Hon'ble NCLAT, final hearing of which was concluded on 22.09.2020. 17. That the present application is being filed under Section 60(5) of the IBC, 2016, seeking direction to allow the Petitioner to file the Resolution Plan after the outcome of the decision passed by the Hon'ble NCLAT and to remove the liens and debt freezes from the account of the Petitioner which were imposed by the Respondent No. 2 without having any jurisdiction. 18. That such arbitrary act of the Respondent No. 2 shall prejudice the rights of the Petitioner under the Code. 19. That any acceptance or admission of Resolution Plan by the Respondents without giving the Petitioner the first right to file the Resolution Plan shall be bad in law and against the objective of the Code. 20. The Counsel representing the RP has submitted that IA No. 61 of 2020 has been filed under Section 60(5) of the IBC, 2016 enclosing a Resolution Plan after approval of the COC via e-voting in its meeting held on 10.11.2020. 21. Heard both sides. The Counsel appearing for the RP has denied the allegations made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lear how the FC has claimed 43 times of the amount of loan disbursed 21 years back when the FC is under RBI Regulations and capping of interest rate, implementation of Base Rate (2010)/MCLR is in operation for last several years in the Country especially for MSME Unit. 22.12. Even when the Guarantee was invoked by the original lender --IDBI, an amount of Rs. 5,42,94,868.00 as on 31.10.2001 was claimed by the original lender. Now the FC has claimed Rs. 133,54,94,330.00 i.e. 24 times of the claimed amount in 18 years. When the OTS was agreed for Rs. 215.89 lacs, the FC has not pursued the case before the DRT and the DRT adjourned the matter sine-die for non-cooperation of the FC. 22.13. The higher officials of the FC may be called for at an appropriate time, if required, to clarify the calculation of the amount claimed in their application filed under Section 7 of IBC when the FC has claimed 43 times of the amount of loan disbursed 21 years back when the FC is under RBI Regulations and capping of interest rate, implementation of Base Rate (2010)/MCLR is in operation for last several years in the Country especially for MSME Unit. It may attract Section 75 of the IBC, 2016. 22.14. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or adhering into day to day life/functioning of Industries Office. 22.20. COC has approved a Resolution Plan on 10.11.2020 and the said plan is placed now before this Adjudicating Authority by the RP for consideration. ORDER 1. Considering the arguments from both sides and all the points mentioned in point No. 22.1 to 222.20 above, especially the following points, we are of the considered view that the Suspended Management of the CD be given a chance to submit Resolution Plan as prayed for. (a) The issue of limitation is clear only from the orders of the Hon'ble Supreme Court of India and the order of the Hon'ble NCLAT dated 20.01.2020 and 24.11.2020 respectively. Hence, the pleadings of the Suspended Management to give him a chance for submitting a Resolution Plan, after the final judgment, being as an MSME Unit is reasonable. (b) Major part of the CIRP Proceedings and the approval of the present Resolution Plan had taken place during Covid Pandemic Period. (c) The CD is an MSME Unit a Corporate Guarantor to the Principal Borrower National Boards Ltd. (NBL). The CD is an Enterprise established on 11.12.1973 functioning fully and the provisions of Section 240 -- ..... 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