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Tribunal to Decide on Payment Extension in Corporate Debtor Resolution The State Bank of India filed for liquidation of a Corporate Debtor taken over by a successful resolution applicant, while the Resolution Applicant sought ...
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Tribunal to Decide on Payment Extension in Corporate Debtor Resolution
The State Bank of India filed for liquidation of a Corporate Debtor taken over by a successful resolution applicant, while the Resolution Applicant sought an extension for payment. The Tribunal acknowledged the challenges faced by both parties, considering the ongoing resolution process and the impact of the COVID-19 pandemic on payment timelines. The Tribunal scheduled a hearing to deliberate on the extension request, emphasizing the importance of addressing liquidation and payment issues in a balanced manner to facilitate an effective resolution process.
Issues: 1. Application filed by State Bank of India seeking liquidation of Corporate Debtor taken over by a successful resolution applicant. 2. Application filed by Resolution Applicant seeking extension of time for making payments as per the approved resolution plan.
Analysis: 1. The State Bank of India filed an application (IA No. 333/CB/2020) seeking the liquidation of the Corporate Debtor, which has been taken over by a successful resolution applicant. The implementation of the resolution plan is currently in progress. This application indicates a significant development in the ongoing resolution process, highlighting the need for the Tribunal to address the issue of liquidation in light of the new circumstances.
2. The Resolution Applicant filed an application (CA No. 58/CTB/2020) requesting an extension of time until 31.10.2021 for making payments as per the approved resolution plan. The Senior Counsel representing the applicant, Mr. Ratnanko Banerjee, explained that while substantial payments have been made, delays have occurred due to the COVID-19 pandemic. The applicant is in negotiations with the State Bank of India for a settlement, with talks in the final stages. The applicant faces challenges in implementing the plan and consolidating resources, but is committed to making considerable payments by 31.03.2021 to demonstrate good faith. The Tribunal decided to list this application, along with other pending applications, for a hearing on 12.04.2021, indicating a need for further deliberation on the extension of time sought by the Resolution Applicant.
Overall, the judgment addresses the pressing issues of liquidation and payment extensions in the context of a corporate insolvency resolution process. It reflects the complexities and challenges faced by both the State Bank of India and the Resolution Applicant, emphasizing the need for careful consideration and a balanced approach in resolving the matter effectively.
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