TaxTMI 
TaxTMI 
2025 (9) TMI 1091
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....(Oral)] This appeal is against the order dated 05.03.2024 by which the National Company Law Tribunal, Mumbai Bench-I ('Tribunal') has allowed the application bearing IA. No. 108/2024 filed by the RP and dismissed the application bearing I.A. No. 5640/2023 filed by the present Appellant. 2. In brief, petition bearing C.P. (IB) No. 703/MB/2019 was filed by the Corporation Bank (now Union Bank of India) under Section 7 of the Insolvency & Bankruptcy Code, 2016 ('Code') against the General Composites Pvt. Ltd. ('Corporate Debtor') for the resolution of its debt which was admitted on 03.09.2019. 3. In the 13th CoC meeting held on 23.07.2021, it rejected the Resolution Plan submitted by the Suspended Director of the Corporate Debtor on 1....
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....MC. 9. In the meeting of the MC held on 03.10.2023, the RP in the capacity of the Chairman of the MC informed the MC that the SRA, vide email dated 26.09.2023 had requested for extension of 60 days time to make the up- front payment, envisaged in the approved Resolution Plan, to the Stakeholders of the CD, on the ground that the Resolution Applicant was in the process of making arrangements to make the up-front payment as per the Resolution Plan. However, the MC informed that no extension can be given. 10. It has been noted in Para 2.5 in the Impugned Order that the payment were to be in terms of the approved Resolution Plan, which is reproduced as hereunder:- 11. It has been recorded by the Tribunal in Para 2.6 that the SRA/ Appli....
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....rs as this Hon'ble NCLT may deem fit" 15. The Tribunal while considering the application filed by the RP had also considered an application bearing IA No. 5640/2023 which was filed by the SRA on 18.10.2023, invoking Section 60(5) of the Code for extension of period of 60 days to make the payment of the first instalment. The prayers made in the said application are also reproduced as under :- "a. The Tribunal may be pleased to allow this Interlocutory Application and grant further extension of 60 days' time to make payment of first instalment as stated in the Successful Resolution Plan. b. The Tribunal may be please to not entertain any application for liquidation of corporate Debtor filed under Section 33 of Ins....
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....that SRA has not independent means to pay the Resolution money as proposed in the approved resolution plan and his commitment to pay are contingent on disposal of the lands owned by the Corporate Debtor or fresh borrowings. It is trite law that a contingent plan cannot stand and it has to give way to consequential proceedings. Accordingly, we have no hesitation to hold that the SRA has failed to implement the resolution plan. Hence, in terms of provisions of section 33(4) of the Code, it is incumbent on this Tribunal to pass orders for liquidation of the Corporate Debtor. 4.2.2. Therefore, looking through the glasses of the drafter of the statute, the term "corporate debtor" under Section 3(8) of IBC encompasses within its definiti....
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....s the payment of the approved Resolution Plan much less comply with the timelines provided therein. 19. It is also pertinent to mention that at one point of time the CoC had decided to liquidate the CD after rejecting the Resolution Plan submitted by the Suspended Director on 19.06.2021 and IA No. 1974 of 2021 was also filed by the RP on 19.08.2021 yet on the application filed by the Appellant bearing IA No. 2128 of 2021 for stay of initiation on liquidation and to provide in one more chance to file his fresh Resolution Plan, the Tribunal allowed the present appellant to submit the fresh Resolution Plan which was approved by the CoC with 100% voting in its meeting held on 04.06.2022. 20. It is also important to note that the Appellant....