Spectra Kolors Vs Saalim Shoes Pvt Ltd (NCLT Chennai)
NCLT Chennai directs initiation of liquidation proceedings under section 33 of the Insolvency and Bankruptcy Code of the Corporate Debtor due to failure of implementing the resolution plan. Thus, the present application is allowed.
Facts- The present application has been preferred under Section 33(3) of the IB Code, 2016 r/w Section 60(5) (a) and (C) r/w Rule 11 of NCLT Rules, 2016 on account of failure of implementation of resolution plan and contravention of the terms and conditions of the Resolution Plan as approved by Adjudicating Authority and to pass directions under Section 33(4) of the IB Code, 2016 to commence Liquidation of the Corporate Debtor as under Section 33(1)(b) (i), (ii), (iii) and (iv) of the IB Code, 2016.
Conclusion- Held that the payments have not been made as per the stipulated time schedule, we hold that the resolution plan approved by the Adjudicating Authority has been contravened by the corporate debtor under the control of SRA.
The Hon’ble Supreme Court in Arcelormittal India versus Satish Kumar Gupta, 2018 SCC OnLine SC 1733, decided on 04.10.2018 has clarified that liquidation under Section 33 can be triggered not just by failure to get a plan, but also if a confirmed plan is breached.
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