Appellate Tribunal Orders Revised Resolution Plan Submission by Sept 12; Ensures Fair Treatment of Creditors. The Appellate Tribunal mandates the submission of a revised 'Resolution Plan' under Section 12A by 12th September 2019, addressing payment allocations for ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Appellate Tribunal Orders Revised Resolution Plan Submission by Sept 12; Ensures Fair Treatment of Creditors.
The Appellate Tribunal mandates the submission of a revised 'Resolution Plan' under Section 12A by 12th September 2019, addressing payment allocations for all 'Financial Creditors' and 'Operational Creditors'. Failure to comply will result in proceedings on merit. The 'Committee of Creditors' must ensure non-discriminatory treatment among creditors, with an order due by 26th September 2019. The next hearing is scheduled for 30th September 2019, and the 'Resolution Professional' is required to provide a status report by 27th September 2019, ensuring transparency and adherence to equitable treatment principles.
Issues involved: Revised 'Resolution Plan' under Section 12A pending consideration before the 'Committee of Creditors'; Allocation for payment to a specific 'Financial Creditor' disputed; Requirement for a fresh proposal for payment to all 'Financial Creditors' and 'Operational Creditors'; Deadline for submission of revised proposal; Potential consequences of failure to submit a revised proposal; Instructions for the 'Committee of Creditors' to ensure no discrimination among creditors; Next hearing date scheduled; Requirement for a status report from the 'Resolution Professional'.
The judgment revolves around a revised 'Resolution Plan' under Section 12A that is currently being reviewed by the 'Committee of Creditors'. The counsel for a 'Financial Creditor' highlights the absence of any allocation for payment to their client in the plan. Consequently, the Appellant and the Promoters are directed to present a fresh proposal during the 'Committee of Creditors' meeting, specifying the amounts to be paid to all 'Financial Creditors' and 'Operational Creditors'. Failure to submit a revised proposal equating the creditors by 12th September 2019 would result in the Appellate Tribunal proceeding with the case on merit. However, if a revised proposal is submitted by the specified date, the 'Committee of Creditors' must ensure no discrimination among 'Financial Creditors', 'Operational Creditors', and 'Creditors', issuing an appropriate order by 26th September 2019.
The judgment sets the next hearing date for the case as 30th September 2019, indicating the timeline for further proceedings. Additionally, it mandates the 'Resolution Professional' to submit a status report by 27th September 2019, ensuring transparency and accountability in the resolution process. These directives aim to streamline the resolution proceedings, address the concerns raised by the 'Financial Creditor', and uphold the principles of fairness and equality among all categories of creditors involved in the resolution plan.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
