Appellate Tribunal Ensures Fair Distribution in Resolution Plans, Reserves Right to Modify

The Appellate Tribunal clarified that the Resolution Plan should be implemented as per the Adjudicating Authority's directions, emphasizing fair distribution between Financial Creditors and Operational Creditors. The Tribunal reserved the right to modify the plan if discriminatory without affecting its viability. It directed the Resolution Professional to convene a meeting of the Committee of Creditors to decide in line with the Adjudicating Authority's directions and corrected a typographical error in a previous order to ensure proper implementation of the Resolution Plan. The Tribunal scheduled appeals for admission on a later date to safeguard the interests of the Successful Resolution Applicant and maintain the plan's integrity.

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Issues:
1) Application for recall of interim order dated 18th March, 2019 or to pass an appropriate order.
2) Interpretation of the Adjudicating Authority's approval of the plan as discriminatory.
3) Implementation of the Resolution Plan by Arcelor Mittal India Pvt. Ltd.
4) Concerns raised by Financial Creditors regarding the impact of non-implementation.
5) Clarification of orders by the Appellate Tribunal regarding the Resolution Plan.

Analysis:
1) The Appellant, Standard Chartered Bank, filed an application seeking the recall of the interim order dated 18th March, 2019, or an appropriate order. The order was related to the approval of the Resolution Plan submitted by Arcelor Mittal India Pvt. Ltd. The Appellant argued that the plan's distribution of amount among Financial Creditors and Operational Creditors was discriminatory.

2) The Adjudicating Authority conditionally approved the Resolution Plan, which was challenged for discriminatory distribution. The Appellate Tribunal clarified that it did not stay the implementation of the plan but reserved the right to modify it if found discriminatory without affecting its viability. The Tribunal emphasized the need for proper distribution between Financial Creditors and Operational Creditors.

3) The Respondents, representing some Financial Creditors, opposed the Appellant's prayer for non-implementation of the Resolution Plan. They argued that failure to implement the plan as ordered would adversely affect Financial Creditors. The Appellate Tribunal observed that the Resolution Plan should be implemented as per the Adjudicating Authority's directions, subject to the Tribunal's decision.

4) The Appellate Tribunal directed the Resolution Professional to convene a meeting of the Committee of Creditors to decide in line with the Adjudicating Authority's directions. The Tribunal also noted a typographical error in the previous order and instructed the necessary correction. The order dated 18th March, 2019 was clarified to ensure the Resolution Plan's proper implementation.

5) The Appellate Tribunal disposed of the application, clarifying the order and scheduling the appeals for admission on a later date. The Tribunal aimed to safeguard the interests of the Successful Resolution Applicant during the appeal process and maintain the integrity of the Resolution Plan's implementation.

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