9911796707
TMI Blog2023 (12) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... Mode ) [ Per : Shreesha Merla , Member ( Technical ) ] 1. Aggrieved by the Impugned Order dated 31.10.2023 passed by the National Company Law Tribunal, Bengaluru Bench in IA. No. 404/BB/2023 in CP (IB) No. 68/BB/2018, whereby and whereunder the Adjudicating Authority has allowed Liquidation of the Corporate Debtor Company, M/s. Linen Art Pvt. Ltd. / the Appellant / the erstwhile SRA preferred this Appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 (herein after referred to as "the Code"). 2. Learned Counsel for the Appellant submitted that the Adjudicating Authority has erroneously allowed the Application seeking Liquidation on the ground that the Appellant had not adhered to the terms of the Resolution Plan. It is subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n letter dated 29.09.2021 and cannot be permitted to approbate and reprobate at the same time. 4. It is submitted that the Appellant was willing to arrange for Rs.35 Crores as on 02.02.2023 and also produced a letter from an interested Company for purchase of Peenya Plant for Rs. 41.60 Crores and also arranged Rs.50 Crores on 21.02.2023 and sought to deposit the same in a no-lien account but the same was not acceptable to the Respondent Bank. It is submitted that if the Appellant is allowed to manage the Corporate Debtor Company, the amount shall be repaid to the Respondent bank in a short period while protecting the interest of the Company in the Going Concern. 5. Learned Counsel for the First Respondent submitted that a Joint Lenders Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n three weeks from the date of approval. Except for the First Respondent, all other CoC members rejected the modified Plan. The First Respondent being a majority shareholder of the CoC accepted the modified Plan, but the Appellant failed to apply even with the revised Plan Despite repeated communication. More than two and half years has lapsed and the Appellant has paid only Rs.32.60 Crores under the Plan from 2019. 7. It is further submitted that in IA No. 53 / 2022 filed on 10.02.2022, the First Respondent/Canara Bank has prayed for declaration that the resolution plan has failed and sought for the exclusion of 924 days from 24.07.2019 to 02.02.2022, to reinstate the CoC and Resolution Professional, so that the CIRP can be restored to pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A and take a reasonable and dispassionate decision on the issue by keeping in mind the object of the Code. Admittedly there were several rounds of discussions held and the Appellant sent a letter dated 12.08.2021 where it sought for modification for the repayment Plan promising to deposit Rs.25 Crores in a no-lien account and a balance 15 Crores within three weeks from the date of approval. 10. We find force in the contention of the Learned Counsel for the First Respondent that though the other CoC members, SBI and IDBI, did not accept the modified payment terms, the First Respondent being the majority voting shareholder of the CoC accepted the modified payment terms way back on 29.09.2021, but the Appellant did not comply with the terms a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal Plan as well as the modified Plan. Keeping in view the law laid down by the Hon'ble Apex Court in Ebix Singapore Pvt. Ltd. vs. Educomp Solutions Ltd. reported in (2022) 2 SCC 401, wherein the Hon'ble Apex Court has clearly emphasised the importance of adhering to strict timelines, keeping in view the scope and objective of the Code. In the instant case as the Appellant / SRA could not implement the Resolution Plan within the specified time, the Adjudicating Authority has rightly, as provided for under Section 33 of the Code, allowed IA No. 363 / 2022 & IA No. 404 / 2023, filed by the Monitoring Committee of Scott Garments and Canara Bank respectively, seeking Liquidation. 13. For all the foregoing reasons, this Appeal is dismissed a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
