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of <h1>Appeal to Withdraw Resolution Plan Dismissed for Financial Difficulties</h1> <h3>Shraddha Buildcon Pvt. Ltd. Versus The Dhar Textile Mills Ltd.</h3> Shraddha Buildcon Pvt. Ltd. Versus The Dhar Textile Mills Ltd. - TMI Issues:- Appeal against rejection of application to withdraw resolution plan- Interpretation of Supreme Court judgment in Ebix Singapore Pvt. Ltd. case- Financial difficulty as a ground for withdrawal from resolution planAnalysis:The judgment pertains to an appeal filed against the rejection of an application to withdraw a resolution plan by the Adjudicating Authority. The appellant sought permission to withdraw the resolution plan dated 24.10.2019, citing financial difficulties. The Adjudicating Authority rejected the application based on the judgment of the Hon'ble Supreme Court in the Ebix Singapore Pvt. Ltd. case. The appellant argued that the cases considered in the Ebix Singapore case were different from the present case, where financial difficulty was the reason for withdrawal request. However, the Tribunal examined the submissions and the record.The Tribunal referred to the Supreme Court's observations in the Ebix Singapore case regarding the adverse impact of the Covid-19 pandemic on businesses and the insolvency resolution process. The Supreme Court highlighted the lack of legislative provisions allowing successful resolution applicants to withdraw plans due to economic slowdown. The Court emphasized that enabling such withdrawals through judicial interpretation would contradict the legislative intent of the Insolvency and Bankruptcy Code (IBC). The Tribunal noted that allowing a successful resolution applicant to withdraw after plan approval would disrupt the IBC process aimed at reviving the corporate debtor.The appellant's argument that financial incapacity was not their fault and resulted from subsequent developments was considered. However, the Tribunal held that financial difficulties alone cannot justify withdrawal from an approved resolution plan. It was emphasized that permitting withdrawal based on financial incapacity would undermine the objectives of the IBC. Therefore, the Tribunal found no merit in the appeal and dismissed it, upholding the rejection of the application to withdraw the resolution plan.
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