Tribunal directs compliance with approved scheme, payment of undisputed amounts, and resolution of disputed costs

The Tribunal disposed of all applications, directing compliance with the approved scheme, payment of undisputed amounts, and resolution of disputed costs through the statutory auditor. The liquidator was instructed to hand over the company's management and assets promptly, act as an independent observer, and address disputed amounts efficiently to prevent prolonged litigation.

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Issues Involved:
1. Compliance with the approved scheme and section 29A of the Insolvency and Bankruptcy Code, 2016.
2. Payment of CIRP cost, liquidator's fees, and liquidation expenses.
3. Handing over of the company's management and assets.
4. Dispute over liquidation costs and fees.
5. Role of the liquidator as an independent observer.
6. Agreement with Knowledge Marine Engineering Works P. Ltd. (KMEWPL).
7. Condonation of delay in filing requisite forms.

Issue-wise Detailed Analysis:

1. Compliance with the Approved Scheme and Section 29A of the Insolvency and Bankruptcy Code, 2016:
The Tribunal approved the scheme proposed by Amma Lines P. Ltd. and Meka Infrastructure P. Ltd. on January 10, 2020, subject to compliance with section 29A of the IBC, 2016. The scheme proponents filed an affidavit confirming compliance, which the liquidator verified and reported back to the Tribunal.

2. Payment of CIRP Cost, Liquidator's Fees, and Liquidation Expenses:
The Tribunal's order on May 5, 2020, directed the scheme proponents to pay the CIRP costs, including the resolution professional fees and liquidation costs, as quantified by the liquidator. The liquidator was to provide supporting vouchers and documents. In case of disputes, the statutory auditor of Meka Dredging Co. P. Ltd. was to verify the claims.

3. Handing Over of the Company's Management and Assets:
Despite the Tribunal's order, the liquidator failed to hand over the company's management and assets, citing unpaid CIRP costs and liquidation fees. The Tribunal found this delay unjustified and reiterated that the liquidator should have handed over the reins by May 5, 2020, if not earlier.

4. Dispute Over Liquidation Costs and Fees:
The scheme proponents disputed certain liquidation costs, including payments to KMEWPL and claim verification costs. The Tribunal directed the statutory auditor to provide an opportunity for the scheme proponents to raise objections and to submit a reconciled report on the disputed amounts.

5. Role of the Liquidator as an Independent Observer:
The Tribunal emphasized that the liquidator should act as an "independent observer" on the board of the corporate debtor, overseeing the implementation of the scheme and reporting any infractions to the Tribunal. The liquidator's fees were to be paid only upon the occurrence of specific events, as per the Tribunal's order.

6. Agreement with Knowledge Marine Engineering Works P. Ltd. (KMEWPL):
The Tribunal addressed the dispute regarding payments to KMEWPL, which were part of the liquidation costs. The liquidator had entered into an agreement with KMEWPL, approved by the Tribunal, to protect the dredging equipment. The Tribunal directed that the board of the corporate debtor, along with the liquidator as an independent observer, decide whether to extend the agreement or engage another party.

7. Condonation of Delay in Filing Requisite Forms:
The Tribunal directed the liquidator to seek remedies under section 460 of the Companies Act, 2013, for the delay in filing the requisite forms, as sought in Application No. I. A. No. 478 of 2020.

Conclusion:
The Tribunal disposed of all applications with specific directions for compliance with the approved scheme, payment of undisputed amounts, and resolution of disputed costs through the statutory auditor. The liquidator was instructed to hand over the company's management and assets within ten days and to act as an independent observer in future proceedings. The Tribunal also provided a mechanism to address the disputed amounts to avoid prolonged litigation.

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