Resolution Plan Approved for Adhunik Metalliks Ltd. by Liberty House Group - Operational Creditor Claim Rejected

The National Company Law Tribunal approved the Resolution Plan by Liberty House Group Pte. Ltd. for M/s. Adhunik Metalliks Ltd. with a high voting percentage. Additional expenses claim by an Operational Creditor was rejected. Disputes arose over upfront payment timelines and plan interpretation. The Tribunal ruled against extending payment deadlines based on CCI approval. It also clarified that dues to Operational Creditors pre-Insolvency Commencement Date cannot be appropriated during the moratorium period. Liberty House Group was granted an additional 30 days for upfront payment, with potential legal consequences for non-compliance.

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Issues:
1. Approval of the Resolution Plan under the Insolvency and Bankruptcy Code, 2016.
2. Rejection of additional expenses claim by an Operational Creditor.
3. Dispute regarding upfront payment and implementation of the Resolution Plan.
4. Interpretation of clauses in the Resolution Plan.
5. Assessment of CCI approval and its impact on the effective date of the Resolution Plan.
6. Appropriation of dues to Operational Creditors during the moratorium period.

Analysis:
1. The National Company Law Tribunal approved the Resolution Plan submitted by Liberty House Group Pte. Ltd. for M/s. Adhunik Metalliks Ltd., as approved by the Committee of Creditors with 99.94% voting shares.
2. The claim of MSTC Limited to treat additional expenses as Resolution Cost was rejected by the Adjudicating Authority.
3. Liberty House Group failed to make upfront payment within the specified timeline, leading to disputes and applications before the Adjudicating Authority.
4. Liberty House Group argued that certain clauses in the Resolution Plan dictated the obligations and assumptions, while MSTC Limited claimed outstanding dues not to be Resolution Costs.
5. The issue of CCI approval was raised, with Liberty House Group seeking an extension for payment based on the approval timeline, which was rejected by the Tribunal.
6. The Tribunal held that dues to Operational Creditors prior to the Insolvency Commencement Date cannot be appropriated during the moratorium period, dismissing the claim by MSTC Limited.

In conclusion, the Tribunal disposed of the appeals, allowing Liberty House Group another 30 days for upfront payment as per the Resolution Plan, failing which appropriate legal action could be taken by the Adjudicating Authority.

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