Case Law Details
Dr. C. Bharath Chandran Vs Ms. Sabine Hospital and Research Centre Pvt. Ltd (NCLAT Chennai)
NCLAT Chennai held that CIRP plan not approved by minimum 66% of the Committee of Creditors is considered to be failed Resolution Plan and on submission of such failed Resolution Plan the Adjudicating Authority will initiate Liquidation Process.
Facts- The Trivandrum International Health Services Ltd. who was a ‘Corporate Debtor’ was a Micro, Small and Medium (MSME) company. Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) by the Adjudicating Authority on 07.02.2020.
Dr. C. Bharath Chandran (Appellant/Resolution Applicant) was the Promoter and Erstwhile Director of the Corporate Debtor, who along with two other co-applicants had submitted a Resolution Plan for revival of the Corporate Debtor. The Resolution Plan was approved by the Committee of Creditors.
The Appellant was directed to furnish Performance Bank Guarantee of Rs. 5 Crores, which it failed to furnish. Thereafter, Appellant was given permission to replace two original co-applicants with two new Applicants. Then the Appellant was also permitted to submit a joint Resolution Plan with one another resolution applicant namely M/s Sabine Hospital and Research Centre. However, none of the Resolution Plans received the mandatory 66% votes of the CoC members.
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