2018 (10) TMI 202

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.... NEW DELHI - AT (Judgement / Order / Decisions)<br>Dated:- 18-9-2018<br>Company Appeal (AT) (Insolvency) No. 325 of 2017 - -<br>Insolvency & Bankruptcy<br>Mr S.J. Mukhopadhaya, Chairperson And Mr Bansi Lal Bhat, Member (Judicial) JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. This appeal has been preferred by 'M/s. Hada Textile Industries Ltd.' 'Corporate Applicant' under Section 61 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the 'I&B Code') against the order dated 13th November, 2017 passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata whereby and whereunder the Adjudicating Authority refused to extend the period of scheme for further five years which was prepared by t....

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.... expedite the decision of reschedule meant for soft loan and submit a report to the Board within four weeks. (b) The company to submit MDRS for extension of SS-04 along with detailed reasons/justifications. (c) Next date of hearing is fixed on 7/4/2014." 4. According to the appellant a 'modified draft rehabilitation scheme' (MDRS) vide letter No. 309/2013-14 dated 24th March, 2014 was forwarded to the BIFR with a copy to the Government of West Bengal and the IFCI monitoring agency. The scheme came to an end on 31st March, 2017 and the net worth of the 'Corporate Applicant' being still negative for the financial year ended on 31st March, 2016, the application for extension of scheme was filed. 5. It was also submitted....

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....heme sanctioned under sub-section (4) or any scheme under implementation under sub-section (12) of Section 18 of the SICA Repeal Act, 1985 shall be deemed to be approved 'resolution plan' under sub-section (1) of Section 31 of the I&B Code. 8. The Adjudicating Authority has noticed the aforesaid fact and observed that even if it is deemed to be a 'resolution plan' under sub-section (1) of Section 31 of the I&B Code, the said plan can be dealt with in terms of the provisions of Part II of the I&B Code. In absence of any provision to review the scheme already sanctioned under sub-section (1) of Section 31 of the I&B Code, the Adjudicating Authority held that the scheme having already approved and as the company failed to turn its net worth....