AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 989
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.... for initiation of CIRP against JVL Agro Industries Limited and appointed Mr. Abhishek Gupta as IRP and subsequently on September 10, 2018 this tribunal has appointed Mr. Supriyo Kr. Chaudhary as RP. 3. It is further stated that the RP in accordance with Regulation 36A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 issued request for submitting EOI, 2 EOIs were received then further COC decided to reissue the request for EOI in which 12 EIOs were received till the last date of submissions. On examination, the RP short listed all 12 potential resolution applicant and provided them access to the virtual data and issued information memorandum as well as Request for submission of Resolution Plan (RFRP) to such potential applicants and the last date for submission of resolution plan was 2nd February, 2019, however no plans were received. As no plans were received by the RP till the last date of submission, therefore COC agreed to extend the date of submission of Resolution plan and COC in its 5th meeting approved the extension of the period of CIRP of 180 to further 90 days. 4. Meanwhile, RP received communication from SREI Multiple Assets Investment T....
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....is Pandemic situation and the economic crisis existing due to Covid-19, the assets of the Corporate Debtor may not fetch the liquidation value, thus prays for considering the application to the RP for voting of the plan before the CoC and the liquidation application to be kept in abeyance. 9. In reply to the above, the counsel for the RP has contended that the applicants admittedly was aware of all developments during the CIRP period and opted not to file any Resolution Plan during the period under IBC and decided to submit the plan before this Tribunal only when SREI application was rejected by this Tribunal. Further, the Resolution Plan of the Applicant was never submitted to the RP and was only provided when this Tribunal directed the applicant to provide the copy of the plan. It is also contended that there is no provision under IBC permitting Resolution Applicant to wait for an indefinite period or for the other resolution plan to be rejected by CoC or by this Tribunal. As the Resolution Applicant was required to submit their plan pursuant to publication of the invitation of EOI within the last date specified under the provisions of IBBI (Insolvency Resolution Process for the....
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....e, the first proviso to Section 30(4) furnishes the answer, which is that all that can happen at this stage is to require the Resolution Professional to invite a fresh resolution plan within the time limits specified where no other resolution plan is available with him. It is clear that at this stage again no application before the Adjudicating Authority could be entertained as there is no vested right or fundamental right in the resolution applicant to have its resolution plan approved and as no adjudication has not taken place. 11. Further submitted that the applicants are also disqualified as per Section 29A IBC as the trust which is the proposed applicants is not in existence and the application is filed by CFO Mr. R.C. Garg who was in the management of CD when it defaulted and the account was declared NPA, thus he is disqualified u/s 29(A)(c) of IBC as he was in the board of ex management that can also be reflected from the MCA data.. Since there is no resolution plan in hand there is no question for RP for representing any plan to the COC and the Resolution Applicant is the non-existing entity and have no locus to file any resolution plan at this stage. 12. Another Interven....
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....more than 700 days directly to the Adjudicating Authority, was needed to be filed before Appropriate Authority i.e. Resolution Professional to be put before CoC and this Adjudicating Authority is not empowered to allow the applicant to file the plan before this Tribunal after the expiry of the such a long period of ending of CIRP. Further in CA No. 73 of 2020, it is also found that it is being filed by one of the Members of the Suspended Directors i.e. Mr. R.C. Garg, who was the CFO of the Company at the time when the application for insolvency was admitted which can also be reflected in the data of Ministry of Corporate Affairs of the corporate Debtor, thus being disqualified under Sec 29(A) of the Code. Thus, this Adjudicating Authority does not find any merit in the arguments raised by the Applicants for allowing the applications and accordingly CA No. 73/2020 as well as IA No. 160 of 2020 is rejected and accordingly disposed of. 16. Further, with regard to the Liquidation application i.e. CA 215/2019, this Tribunal finds that the ex-management has raised the objection that the object of the Code is maximization of value of assets. Therefore, the plan presented before this Adju....