Tribunal Orders Revised Resolution Plan, Rejects Waiver of Public Invitation Requirement

The Tribunal directed the Resolution Professional (RP) to prepare a revised resolution plan considering the Operational Creditor's claim, emphasizing the need for valid unpaid invoices. The Committee of Creditors (COC) approved a Bank Guarantee for the disputed amount pending resolution by the High Court. The COC sought a waiver of the public invitation requirement for management continuity of the Corporate Debtor (CD), contested by the Operational Creditor (OC). The Tribunal emphasized the mandatory nature of inviting prospective resolution applicants, rejecting the RP's request to dispense with public notice. The RP's duties, including inviting resolution applicants, were deemed mandatory, with compliance and further proceedings outlined by the Tribunal.

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Issues:
1) Validity of the claim made by the Operational Creditor
2) Protection of Operational Creditor's interest through Bank Guarantee
3) Waiving the requirement of public invitation for resolution plan submission
4) Compliance with duties of Resolution Professional
5) Reduction of claim amount by the Resolution Professional
6) Dispute over alleged custom duty liability
7) Compliance with previous orders of the Tribunal

Analysis:
1) The Tribunal had previously directed the Resolution Professional (RP) to prepare a revised resolution plan considering the Operational Creditor's claim. The RP raised concerns about the lack of valid unpaid invoices supporting the claim, stating that all invoices produced were paid by the Corporate Debtor (CD). The Committee of Creditors (COC) approved a Bank Guarantee for the disputed amount, pending resolution by the High Court. The RP emphasized the need for valid invoices to support the claim.

2) The COC set an eligibility criterion for the management continuity of the CD, seeking a waiver of public invitation requirement. The Operational Creditor (OC) questioned the RP's conduct in not inviting other Resolution Applicants and submitting a sole plan from the Promoters/Directors. The RP's reduction of the claim amount without proper examination was also contested by the OC.

3) The OC highlighted discrepancies in the RP's handling of the claim and disputed custom duty liability. The RP suggested protecting the OC's interest through a Bank Guarantee, but the OC found this approach vague. The Tribunal emphasized the mandatory nature of inviting prospective resolution applicants, rejecting the RP's request to dispense with public notice.

4) The Tribunal reiterated its previous order regarding the OC's claim and directed compliance by the RP. The OC was instructed to produce invoices, with the CD directed to make payments without a Bank Guarantee. Pending customs classification issues were noted, with potential adjustments based on the Supreme Court's verdict in favor of the CD.

5) The Tribunal addressed the RP's request for a CIRP extension, granting a 60-day extension. The RP's duties, including inviting resolution applicants, were deemed mandatory, emphasizing the importance of public notice for transparency. The applications were disposed of accordingly, with directions for compliance and further proceedings outlined by the Tribunal.

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