Tribunal orders Resolution Applicant to comply with approved Plan terms, payment deadlines emphasized

The Tribunal ordered the Resolution Applicant to comply with the approved Resolution Plan terms, directing payment of overdue upfront amount, issuance of NCDs to Financial Creditors, and depositing balance performance guarantee within specified timelines to rectify non-compliance. The Tribunal emphasized the binding nature of the Resolution Plan and the Monitoring Agency's authority to ensure successful implementation.

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Issues:
1. Relief sought by the Monitoring Agency of the Corporate Debtor against the Resolution Applicant under section 60(5) of the IBC 2016 for implementing the approved Resolution Plan.
2. Dispute regarding the implementation of the Resolution Plan by the Resolution Applicant, including non-payment of upfront consideration and issuance of NCDs to Financial Creditors.
3. Contention on the amendment of the Resolution Plan terms by the Resolution Applicant post-approval by CoC and NCLT.
4. Dispute over the adjustment of cash balances accruing in the Corporate Debtor against the upfront payment.
5. Locus standi of the Monitoring Agency to file a Miscellaneous Application for implementation of the Resolution Plan.

Analysis:

1. The Monitoring Agency sought directions against the Resolution Applicant to implement the approved Resolution Plan promptly to avoid hindrance in the Corporate Debtor's resolution process, citing the Resolution Applicant's failure to adhere to the approved terms.

2. The Resolution Applicant failed to make the upfront payment and issue NCDs to Financial Creditors within the stipulated timeline post NCLT approval, leading to a breach of the Resolution Plan terms.

3. The Resolution Applicant's attempts to retrospectively amend the Resolution Plan terms were rejected by the Monitoring Agency, emphasizing that approved plans are binding and cannot be modified unilaterally post-approval.

4. Dispute arose over the Resolution Applicant's claim to adjust cash balances accruing in the Corporate Debtor against the upfront payment, contrary to the Resolution Plan's clear provision to accrue and pay such balances to Financial Creditors till the upfront payment date.

5. The Resolution Applicant challenged the Monitoring Agency's locus standi to file the Application, contending that it required authorization from the Steering Committee. However, the Tribunal clarified that the Monitoring Agency and Resolution Professional are duty-bound to ensure successful plan implementation, as permitted by the Tribunal's order.

The Tribunal found the Resolution Applicant's contentions unfounded and ordered compliance with the Resolution Plan terms, directing the Resolution Applicant to make the overdue upfront payment, issue NCDs to Financial Creditors, and deposit the balance performance guarantee within specified timelines to rectify the non-compliance. The Tribunal emphasized the binding nature of the approved Resolution Plan and the Monitoring Agency's authority to seek compliance for successful plan implementation.

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