National Company Law Appellate Tribunal sets deadline for intervention applications on Liberty House Group resolution plan

The National Company Law Appellate Tribunal directed intervention applications by Deccan Value Investors, LP and Shareholders/Members regarding a resolution plan approved for Liberty House Group to be filed within two weeks. The Tribunal sought explanations for non-compliance with the approved plan and considered setting aside the impugned order. The Committee of Creditors was barred from approving alternative plans during the appeal, while the Resolution Professional was tasked with maintaining the company's operations, ensuring wage payments, and collaborating with relevant parties for compliance. The matter was scheduled for further orders on April 22, 2019.

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Issues: Intervention applications by Deccan Value Investors, LP and Shareholders/Members; Compliance with resolution plan approved in favor of Liberty House Group; Functioning of Resolution Professional and Committee of Creditors.

In this judgment by the National Company Law Appellate Tribunal, two intervention applications were filed by Deccan Value Investors, LP (DVI) and Shareholders/Members regarding a resolution plan approved in favor of Liberty House Group. The advocates representing these parties were granted two weeks to file their applications and state their stand. The Appellate Tribunal directed the parties to explain why the impugned order should not be set aside and the Adjudicating Authority be directed to pass an order under section 33(3) of the Insolvency and Bankruptcy Code, as the approved resolution plan had not been complied with. The appeal was posted for orders on April 22, 2019.

During the pendency of the appeal, the Committee of Creditors was prohibited from approving any other plan based on the impugned order. The Resolution Professional was instructed to ensure the company's continuity as a going concern, prevent disruption in manufacturing and production, ensure timely payment of wages to employees/workers, and make payments to suppliers for any goods supplied during the corporate resolution process. Additionally, the Resolution Professional was directed to seek assistance from the (suspended) Board of Directors, paid Directors, and employees. Banks holding accounts of the corporate debtor were also instructed to cooperate with the Resolution Professional to ensure compliance with the Tribunal's order.

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