Tribunal Overturns Liquidation Order, Approves Rs.72 Crore Resolution Plan, Grants Time Extension

The Tribunal set aside the Order of Liquidation and directed consideration of an Improved Resolution Plan totaling Rs.72 Crore, with the Liquidator continuing as the Resolution Professional. The Appellant's request for exclusion of time for computing the completion period was granted, and the Bank was permitted to plead for appropriation of the sum. The appeal was disposed of with no costs, and the Contempt Case was dismissed after the main appeal was resolved.

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Issues:
1. Challenge against the Order of Liquidation
2. Submission of Resolution Plan and payment details
3. Setting aside the Order of Liquidation
4. Continuation of the Liquidator as Resolution Professional
5. Exclusion of time for computing the completion period
6. Permission for the Bank to plead for appropriation

Analysis:
1. The Appellant, a Suspended Director of a company, challenged the Order of Liquidation passed by the Adjudicating Authority. The Appellant contended that a total Resolution Plan of Rs.72 Crore was submitted, with an upfront payment of Rs.17.51 Crore followed by Rs.54.49 Crore. The Respondents acknowledged the receipt of the total sum. The Appellant sought to set aside the Order of Liquidation, which was not opposed by the Committee of Creditor or the Liquidator.

2. The Tribunal noted the receipt of Rs.72 Crore by the Committee of Creditor and set aside the Order of Liquidation to prevent injustice. The Tribunal directed the Adjudicating Authority to consider the Improved Resolution Plan submitted by the Appellant and proceed as per the Insolvency & Bankruptcy Code, 2016. The Liquidator was to continue as the Resolution Professional due to being in charge of the Corporate Debtor's operations.

3. The Appellant's request for the exclusion of time spent before the Adjudicating Authority and during the proceedings was granted for computing the completion period of the Corporate Insolvency Resolution Process. The Tribunal allowed the Bank to plead for the appropriation of the Rs.72 Crore before the Adjudicating Authority, with the final decision to be made in accordance with the law.

4. The Tribunal disposed of the appeal with no costs and closed the connected applications. The Contempt Case filed by the Appellant was dismissed following the disposal of the main appeal by the Appellate Tribunal.

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