TaxTMI 
TaxTMI 
2020 (1) TMI 1389
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....esolution Applicant; c. Pass an order for liquidation of the Corporate Debtor under section 33(1) of the Insolvency and Bankruptcy Code, 2016; d. Pass an order for the discharge of the erstwhile Resolution Professional for the purposes of Liquidation; e. Pass an order for the appointment of Mr. Ramchandran Subramanian, Registration Number: IBBI/IPA-001/IP-P01440/2018-2019/12136 as the Liquidator for the Corporate Debtor. f. pass an order directing that the Bank Guarantees submitted by the Corporate Debtor should not be encased. g. Pass any other order or reliefs as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the present case." 2. The facts in brief necessary for disposal of the present application are that one of the Financial Creditors, namely, Edelweiss Asset Reconstruction Company Limited had preferred an application under section 7 of the Code for initiation of corporate resolution process against M/s. Tecpro Systems Limited ("Corporate Debtor"). The application was admitted on 7th August, 2017 imposing moratorium under section 14 of the Code and the applicant, Mr. Venkatesan Sankar....
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.... of Rs. 5 Crores submitted by Kridhan Infrastructures Private Limited be forfeited and appropriated as per terms of the same. RESOLVED FURTHER THAT the erstwhile Resolution Professional be and is hereby authorised to take necessary steps for filing application before the Adjudicating Authority for annulment of the successful Resolution Plan and for an application for liquidation of the Corporate Debtor under section 33 of the Insolvency and Bankruptcy Code, 2016 and for any other proceedings related or incidental to the matter. Resolution for appointment of Liquidator: RESOLVED THAT subject to the order of the Adjudicating Authority under section 34 of the Insolvency and Bankruptcy Code, 2016, Mr. Ramachandran Subramanian, Registration Number:- IBBI/IPA- 001/IP-P01440/2018-2019/12136 shall act as the liquidator during the liquidation of the Corporate Debtor. RESOLVED FURTHER THAT pursuant to Section 34(8) of the Insolvency and Bankruptcy Code, 2016, Regulation 39D of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the fee payable to the Liquidator and support team (EY Restructuring L....
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....ments costs, EOI costs, MCA Filing fees etc. Resolution for RP to continue till further order the Adjudicating Authority RESOLVED THAT the erstwhile RP Mr. Venkatesan Sankaranarayan, to act as the Resolution Professional from the date of filing of the liquidation application with the Adjudicating Authority until further orders/directors, as may be, received from Adjudicating Authority." 6. During hearing on 18.12 2019 an opportunity was afforded to respondent Nos. 1 to 3 to file reply within one week thereof. However, neither any reply was filed nor it could be shown as to how the approved resolution plan could at all be implemented. 7. Admittedly the resolution applicant has failed to adhere to any of their timelines for equity infusion even after a period of about 8 months since approval of the resolution plan. There is force in the contention that the respondents have repeatedly failed to honour their own commitments and there was delay in infusion of equity, upfront payment and taking control of the management of the Corporate Debtor, which has threatened the going concern status of the corporate debtor severely. 8. In the facts the erstwhile CoC in its mee....
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....n terms of the provisions of section 33(3) of the Code. 13. There is also a prayer in the application that the performance guarantee of Rs. 5 Crore furnished by the successful resolution applicant may be forfeited in terms of Regulation 36B (4A) of CIRP Regulations. The successful resolution applicant M/s. Kridhan Infrastructures Private Limited has submitted a performance guarantee of Rupees Five Crores in the corporate debtor's Escrow Account on 13-6-2019. 14. Regulation 36B (4A) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 provides as follows: "(4A) The request for resolution plans shall require the resolution applicant, in case its resolution plan is approved under sub-section (4) of section 30, to provide a performance security within the time specified therein and such performance security shall stand forfeited if the resolution applicant of such plan, after its approval by the Adjudicating Authority, fails to implement or contributes to the failure of implementation of that plan in accordance with the terms of the plan and its implementation schedule." 15. Regulation 36B (4A) of ....