Tribunal extends CIRP, CoC to review revised offer, mandates Resolution Plan approval

The Tribunal set aside the order for liquidation and extended the Corporate Insolvency Resolution Process (CIRP) for 60 days to allow the Committee of Creditors (CoC) to consider a revised offer from one appellant. The CoC was instructed to only consider the revised offer submitted by the appellant. If the Resolution Plan was approved, an application should be filed for approval; if not, the Resolution Professional should promptly file for liquidation.

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Issues Involved:
- Appeal against the order allowing liquidation application without considering higher offer from appellants.

Summary:
The Appellate Tribunal heard two appeals against an order passed by the Adjudicating Authority allowing a liquidation application filed by the Resolution Professional. The appellants contended that they were willing to provide a higher offer, but their offers were not considered before the liquidation order was passed.

In Company Appeal (AT) (Insolvency) No.657 of 2023, the appellants, who were resolution applicants, argued that their plans were not approved, and the order for liquidation was unjustified. The Committee of Creditors (CoC) had not provided reasons for rejecting their plans. The CoC mentioned that the plans were not approved with 100% votes, and an auction notice had been issued for the sale. The appellants were given the opportunity to enhance their offers to the Liquidator, and the appeals were listed for further hearing.

In a subsequent order, the CoC informed the Tribunal about a revised offer submitted by one appellant, while the other appellant had not submitted a revised offer. The CoC stated that the offer from the first appellant was acceptable if the Tribunal allowed the withdrawal of the liquidation process and extended the time for Corporate Insolvency Resolution Process (CIRP). The Tribunal decided to give the CoC one more opportunity to consider the revised offer and make a decision.

Considering the objective of the Insolvency and Bankruptcy Code (IBC) to revive the Corporate Debtor, the Tribunal set aside the order for liquidation and extended the CIRP for 60 days to complete the process. It was clarified that if the Resolution Plan was approved, an application should be filed for approval before the Adjudicating Authority. If the Resolution Plan was not approved, the Resolution Professional should promptly file an application for liquidation. The CoC was instructed to consider only the revised offer submitted by one of the appellants. Both appeals were disposed of accordingly.

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