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Tribunal orders additional deposit for CIRP costs & directs release of Bank Guarantee The Tribunal accepted the Resolution Applicant's commitment to deposit an additional Rs. 10 crores within two weeks to fulfill CIRP cost and share ...
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Tribunal orders additional deposit for CIRP costs & directs release of Bank Guarantee
The Tribunal accepted the Resolution Applicant's commitment to deposit an additional Rs. 10 crores within two weeks to fulfill CIRP cost and share issuance obligations. The CoC was directed to release the Bank Guarantee for Rs. 10 crores as the Applicant had already deposited the equivalent amount. The Tribunal also instructed the CoC to write to the Bank for the release of a non-enforceable Bank Guarantee and provide necessary Account details for compliance. The matter was listed for further orders on 19th February 2021, ensuring progress towards effective resolution in line with the approved Resolution Plan.
Issues: Implementation of Resolution Plan, Non-enforceable Bank Guarantee, Compliance with CIRP cost and share issue, Account details for deposit
The Tribunal addressed the issue of the Resolution Applicant's failure to implement the approved Resolution Plan. The Resolution Applicant had already deposited Rs. 10 crores instead of providing a Bank Guarantee as per the Plan's requirements. The Applicant committed to bringing in an additional Rs. 10 crores within two weeks to fulfill CIRP cost and share issuance obligations. The Tribunal accepted this submission, directing the Committee of Creditors (CoC) to release the Bank Guarantee for Rs. 10 crores, as the Applicant had already deposited the equivalent amount.
The Tribunal considered the matter of a non-enforceable Bank Guarantee issued by Banque De Luxembourg Bank for Rs. 10 crores. Upon invoking the Bank Guarantee, the Bank informed the CoC that it was non-enforceable due to the Resolution Applicant's prior deposit of Rs. 10,000,000. The Resolution Applicant assured the Tribunal that the remaining Rs. 10 crores would be infused within two weeks. Given the existing deposit, the Tribunal directed the CoC to write to the Bank for the release of the Bank Guarantee.
The Resolution Applicant highlighted that the CoC had not provided the Bank Account Number for depositing the remaining Rs. 10 crores. Consequently, the CoC was instructed to furnish the necessary Account details for the Resolution Applicant's compliance. The Tribunal ordered the Registry to list the Application for compliance and further orders on 19th February 2021.
By addressing the issues of Plan implementation, Bank Guarantee enforcement, compliance with financial obligations, and providing necessary Account details, the Tribunal ensured progress towards resolving the matter effectively and in accordance with the approved Resolution Plan.
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