2023 (4) TMI 352 - AT - Insolvency and Bankruptcy

Extension Granted for Resolution Plan Implementation, Encroachment Issue Addressed

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, allowed a further 90 days for parties to implement the Resolution Plan without ... Encroachment on the land of the Corporate Debtor - consequential implementation of the Resolution Plan - HELD THAT:- The steps have been taken for implementation of the plan and on 20.03.2023, parties submitted that the Appellant – Successful Resolution Applicant is at the verge of completion of implementation of plan. Today, both the parties submit that the plan stands implemented w.e.f. 31.03.2023. In view of the fact that the plan stands implemented, there are no reason to entertain this Appeal - appeal disposed off. Issues Involved:The issues involved in this case are the challenge to an order regarding encroachment on the land of the Corporate Debtor and the implementation of the Resolution Plan, as well as the applicability of Section 32A of the Code.Regarding Challenge to Order on Encroachment:The Appeals were filed challenging an order dated 11.11.2022, where two applications were partly allowed and dismissed, filed by the Successful Resolution Applicant seeking directions for encroachment on the land of the Corporate Debtor and the implementation of the Resolution Plan. The Adjudicating Authority allowed a further 90 days for both parties to implement the Resolution Plan, directing compliance with financial obligations within the stipulated period without linking it to the clearance of properties from encroachment. The Monitoring Committee Chairman was directed to take actions to remove encroachments over the properties, especially the nine mentioned properties, with cooperation from Revenue and Police Authorities. The need for a separate local Commissioner to inspect the properties was deemed unnecessary.Regarding Implementation of Resolution Plan:Two Company Appeals were filed, one by the Successful Resolution Applicant and the other by Axis Bank and other lenders. It was noted that steps were taken for plan implementation, and both parties confirmed that the plan was fully implemented as of 31.03.2023. Consequently, the Appeals were not entertained.Regarding Applicability of Section 32A of the Code:The counsel for the Appellant asserted entitlement to protection under Section 32A of the Code, a statute concerning liability for prior offenses. It was emphasized that the Appellant could seek protection under Section 32A as per the law when necessary. Additionally, the Appellant's counsel requested the extension of directions from the impugned order for further plan implementation when needed. The Adjudicating Authority had already issued necessary directions for appropriate measures towards plan implementation.This summary provides a detailed overview of the judgment, addressing the issues involved and the decisions made by the National Company Law Appellate Tribunal, Principal Bench, New Delhi.