Final extension granted to Resolution Applicant with strict reporting requirements

The Tribunal granted a final extension until 31.10.2021 to the Resolution Applicant to fulfill commitments under the Resolution Plan. The applicant must submit weekly progress reports, and stakeholders were instructed to cooperate fully. Liquidation would be considered as a last resort if the Resolution Applicant failed to comply. Connected matters were scheduled for consideration on 01.11.2021.

---

---

Issues Involved:
1. Revision of payment timelines to creditors.
2. Issuance of NOC by Axis Bank for share transfer.
3. Support from the Monitoring Agency for reconstitution of the Board of Directors.
4. Smooth implementation of the Resolution Plan.
5. Ex-parte ad interim order for maintaining status quo.

Issue-wise Detailed Analysis:

1. Revision of Payment Timelines to Creditors:
The Resolution Applicant, Tricounty Premier Hearing Services Inc., sought to revise the payment timelines to various creditors as per the approved Resolution Plan. The applicant highlighted the delays in payments and requested an extension. The Tribunal acknowledged the applicant’s efforts but noted significant lapses and non-compliance with previous orders. Despite the pandemic, the default occurred before its onset. The Tribunal granted a final extension till 31.10.2021 for the Resolution Applicant to meet its commitments.

2. Issuance of NOC by Axis Bank for Share Transfer:
The Resolution Applicant requested Axis Bank to issue a No Objection Certificate (NOC) to facilitate the transfer of shares of the Corporate Debtor. The shares were in dematerialized form and pledged with Axis Bank. The Tribunal recognized the necessity of the NOC for the transfer but did not issue a specific directive to Axis Bank within this order.

3. Support from the Monitoring Agency for Reconstitution of the Board of Directors:
The applicant sought support from the Monitoring Agency to reconstitute the Board of Directors of the Corporate Debtor. The Tribunal acknowledged the applicant’s efforts to appoint new directors but noted the "ACTIVE Non-Complaint" status of the Corporate Debtor, which hindered the process. The Tribunal directed all stakeholders to cooperate fully with the Resolution Applicant to ensure successful implementation of the Resolution Plan.

4. Smooth Implementation of the Resolution Plan:
The applicant requested directions for the smooth implementation of the Resolution Plan. The Tribunal noted the applicant’s partial compliance and efforts, including payments made towards CIRP costs and other dues. However, the Tribunal emphasized the applicant’s failure to meet the financial obligations fully and directed the Resolution Applicant to submit weekly progress reports on the implementation of the Resolution Plan.

5. Ex-parte ad interim order for maintaining status quo:
The applicant sought an ex-parte ad interim order to maintain the status quo regarding the Corporate Debtor during the pendency of the application. The Tribunal did not explicitly address this request in the final order, focusing instead on the extension and compliance requirements.

Conclusion:
The Tribunal granted a final extension to the Resolution Applicant till 31.10.2021 to fulfill all commitments under the Resolution Plan. The Resolution Applicant was directed to submit weekly progress reports, and all stakeholders were instructed to cooperate fully. The Tribunal emphasized that liquidation would be considered only as a last resort if the Resolution Applicant failed to comply. The connected matters were kept in abeyance and scheduled for consideration on 01.11.2021.

---