Tribunal dismisses application, directs handover to Monitoring Committee for Resolution Plan implementation.

The Tribunal dismissed the application filed by the erstwhile Resolution Professional, finding no breach of the Resolution Plan by the Resolution Applicant. The Tribunal directed the immediate handover of documents and the unit to the Monitoring Committee for the smooth implementation of the Resolution Plan within three days. The Tribunal also closed the related applications filed by the Resolution Applicant.

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Issues Involved:
1. Alleged willful and deliberate violation of the Resolution Plan by the successful Resolution Applicant (RA).
2. Request for encashment of Performance Guarantee to meet CIRP costs.
3. Handover of management and control of assets and documents of the Corporate Debtor to the RA.
4. Replacement of the erstwhile Resolution Professional (RP) in the Monitoring Committee (MC).
5. Compliance with orders of the Adjudicating Authority.

Issue-wise Detailed Analysis:

1. Alleged Willful and Deliberate Violation of the Resolution Plan by the Successful Resolution Applicant (RA):
The erstwhile RP filed an application under Section 74(3) of the IBC, alleging that the RA failed to make the down payment as per the approved Resolution Plan, thus violating the Plan. The RP sought criminal prosecution against the RA. The Tribunal noted that the RA had taken out Bankers Cheques for Rs. 40 crores on 02.02.2021 and was ready to hand over the payment subject to receipt of necessary documents. The Tribunal concluded that the RA's conduct appeared bona fide and did not warrant punishment under Section 74(3) of the IBC, as there was no willful contravention of the Resolution Plan.

2. Request for Encashment of Performance Guarantee to Meet CIRP Costs:
The erstwhile RP sought permission to encash the Performance Guarantee of Rs. 2 crores to meet the CIRP costs. The Tribunal found that since the RA had not breached the Resolution Plan, the question of forfeiture or encashment of the Performance Guarantee did not arise. The Tribunal dismissed this request.

3. Handover of Management and Control of Assets and Documents of the Corporate Debtor to the RA:
The RA sought directions for the handover of management and control of all assets, documents, and records of the Corporate Debtor, including various login credentials and original property documents. The Tribunal directed the erstwhile RP to hand over all necessary documents, details, and the unit to the Monitoring Committee for the smooth implementation of the Resolution Plan within three days of the order.

4. Replacement of the Erstwhile Resolution Professional (RP) in the Monitoring Committee (MC):
The RA sought to replace the erstwhile RP in the MC, alleging non-cooperation. The Tribunal noted that the erstwhile RP had failed in his duties by absenting himself from the MC meeting on 29.01.2021 and filing the application without referring to the provisions of Section 236 of the IBC. The Tribunal did not explicitly order the replacement but directed the RA and the erstwhile RP to comply with the handover process.

5. Compliance with Orders of the Adjudicating Authority:
The Tribunal observed that the erstwhile RP had filed the application despite an earlier order directing him not to take coercive steps against the RA. The Tribunal emphasized that any failure to comply with the handover process would be deemed an attempt to derail the insolvency resolution process and would be dealt with accordingly.

Conclusion:
The Tribunal dismissed the application filed by the erstwhile RP, finding no breach of the Resolution Plan by the RA and directing the immediate handover of documents and the unit to the Monitoring Committee. The Tribunal also closed the related applications filed by the RA.

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