The Supreme Court held that the Effective Date for implementing...

The Supreme Court held that the Effective Date for implementing the Resolution Plan was achieved on 20.05.2022 as all Conditions Precedent were fulfilled. The Performance Bank Guarantee (PBG) could not be adjusted against the first tranche payment as per the Resolution Plan. The Resolution Applicant/Successful Resolution Applicant (SRA) failed to implement the Resolution Plan by non-payment of the first tranche, airport dues, workmen and employees' dues. The NCLAT rightly held the SRA contravened the approved Resolution Plan, warranting liquidation u/s 33(3) of the IBC. Timely implementation is crucial under the IBC, so the SC exercised Article 142 powers to direct liquidation of the Corporate Debtor, overriding the need for the Adjudicating Authority's determination, to prevent delays. The PBG may be invoked by creditors per the Resolution Plan terms.