Appeal Dismissed: Timely Resolution Plan Key in Liquidation Process

The National Company Law Appellate Tribunal dismissed both appeals, emphasizing that the Committee of Creditors' decision for liquidation was valid due to the untimely submission of the resolution plan by the appellant. The Tribunal highlighted the importance of complying with the deadlines set under the Insolvency and Bankruptcy Code, 2016, and clarified the provision under Section 12A for satisfying creditors during liquidation. The appellant's grievances regarding lack of opportunity and dispute over the submission method were considered but ultimately did not alter the outcome in favor of the appellant.

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Issues involved:
1. Submission of resolution plan and decision for liquidation without giving opportunity to the appellant.
2. Timeliness of submission of resolution plan.
3. Dispute regarding submission of resolution plan through a Director.
4. Decision of Committee of Creditors for liquidation.
5. Provision under Section 12A for satisfying Committee of Creditors during liquidation.

Issue 1: Submission of resolution plan and decision for liquidation without giving opportunity to the appellant
The appellant raised a grievance that the Committee of Creditors decided on liquidation without providing an opportunity to consider the resolution plan submitted by the appellant. The Resolution Professional argued that the appellant submitted the plan on the 178th day, just two days before the completion of the 180-day period. Due to the late submission, the application for liquidation was moved before the Adjudicating Authority.

Issue 2: Timeliness of submission of resolution plan
The Resolution Professional stated that no resolution plan was submitted within the stipulated time, and the plan submitted by the appellant was delayed, being presented on the 178th day. The Committee of Creditors decided on liquidation on the 179th day, as the 180th day marked the deadline for passing an order under Section 31 of the Insolvency and Bankruptcy Code, 2016 (I&B Code). No extension was granted due to the absence of a valid reason.

Issue 3: Dispute regarding submission of resolution plan through a Director
The counsel for the Central Bank of India contended that the resolution plan was submitted through a Director, a fact disputed by the appellant's counsel. This discrepancy added a layer of complexity to the submission process of the resolution plan.

Issue 4: Decision of Committee of Creditors for liquidation
The Committee of Creditors decided on liquidation promptly after the submission of the resolution plan on the 178th day, leading to the application for liquidation before the Adjudicating Authority. The Tribunal, considering the timeline and lack of extension reasons, declined to provide any relief to the appellant.

Issue 5: Provision under Section 12A for satisfying Committee of Creditors during liquidation
Section 12A allows for a person, not barred under Section 29A, to satisfy the demands of the Committee of Creditors even during the liquidation phase. If the Committee of Creditors, with a 90% voting share, accepts an offer and decides to withdraw the application under Section 7 of the I&B Code, the Adjudicating Authority can pass an appropriate order disregarding the previous liquidation decision. Both appeals were dismissed with these observations, and no costs were imposed.

This detailed analysis covers the issues raised in the judgment, providing a comprehensive understanding of the legal complexities and decisions made by the National Company Law Appellate Tribunal.

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