TaxTMI 
TaxTMI 
2021 (7) TMI 496
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.... Law Tribunal Rules, 2016 (hereinafter referred as "rules") against South Indian Bank and others seeking the following reliefs:- 1. Resolution Plan be modified by incorporating the mutually agreed position regarding the grace period. 2. The Applicant be permitted to follow the revised timeline based on mutual agreement between the parties during the 9th CoC meeting or; 3. Considering the medical condition of the Applicant, grant an extension of two months to the timelines proposed under the Resolution Plan. 2. It is stated that on finalisation of their Application as Resolution Applicant on 23.03.2020, they submitted the first Resolution Plan on 26.08.2020. However, since the Resolution Plan cannot be accepted ....
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....nder: - "For any default in making payment as specified in this plan, a cure period of 90 days would be provided to cure the default/delayed payment. Representative from South Indian Bank informed further 90 days curing period cannot be permitted in the plan as already there is sufficient period inbuilt in the plan. The Resolution Applicant informed for the first tranche payments he does not requires any grace period. However, considering the present pandemic situation if any adverse eventuality arises he requires some grace period and it is mutually agreed to have grace period of 30 days or up to maximum March 19th curing period to complete the plan implementation with regard to the payments." 5. This mutually agreed position w....
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....te of approval of the Resolution Plan by AA whichever is later. Further, the following has been included under 'Other Reliefs': For any default in making the final payment to the financial creditors as specified in this plan, a cure period of a maximum of 20 days would be provided to cure the default/delayed payment." 6. The Resolution Applicant stated that the mutually agreed understanding in the 9th CoC meeting is not considered while filing the final Resolution Plan for approval. It is further stated that the Applicant has already paid a sum of Rs. 1,00,00,000 (Rupees One Crore Only) as performance guarantee on 24.11.2020. Hence, it is clear that the applicant is fully committed to comply with the conditions ....
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....race period in the minutes of the meeting recorded by the Resolution Applicant. Therefore, Respondents seeks the leave of the Tribunal to rely upon the minutes of the meetings for their true intent and purport. It was further contended that there was never a mutually agreed cure period as submitted by the Applicant. The request of the applicant for a mutually agreed cure period for the final payment as per Resolution Plan subject to maximum of 19.03.2021 was recorded. 9. It is also stated that pursuant to the default committed, the performance guarantee was invoked on 04-02-2021. It is clear from the events that the Resolution Applicant has found it difficult to comply with his commitments under the Resolution Plan, and the same clearly ....
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....ines under both general and special statues considering the Covid-19 crisis. Moreover, the performance guarantees successfully invoked by the Respondent No. 2 shows that Resolution Applicant met his obligation under the Resolution Plan albeit he requires a short period of time for the same. 13. It is further stated that excluding the lockdown period from March 2020 to August 31, 2020, the Corporate Insolvency Resolution Process timeline is not expired. Therefore, the Applicant may be granted further time to comply with the terms of the Resolution Plan to make necessary payments according to the modified timelines as prayed for in the present Application. 14. We have heard the arguments advanced by the learned counsel appearing for the....
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.... Plan to the tune of Rs. 1.85 Crores which is less than 10% of the committed amount in the Resolution Plan. On some pretext or the other he was going on seeking extension of the period for payment of the committed amount. He has filed this IA/37/KOB/2021 on 03.02.2021 (after curing the defects) for a further extension of time for another two months while the time already granted has been expired long back. Such an attitude on the part of the Resolution Applicant cannot be accepted. 16. The prayer to modify the Resolution Plan incorporating mutually agreed position regarding the grace period and to follow the revised timeline based on that cannot be accepted by this Adjudicating Authority, because once a r=Resolution Plan is approved by t....