Sanjay Dave Vs Andhra Bank Ltd (NCALT Delhi)
NCLAT Delhi held that section 33 of Insolvency and Bankruptcy Code, 2016 (IBC) empowers the CoC to decide to liquidate the Corporate Debtor any time before the confirmation of the resolution plan by the Adjudicating Authority.
Facts- On 09.08.2018, Corporate Debtor was admitted into insolvency. Interested resolution applicants were given time to submit their resolution plans to the Resolution Professional on or before 22.04.2019. CIRP period came to an end on 13.05.2019. On 11.02.2020, decision was taken by CoC to proceed with the liquidation of the Corporate Debtor with 99.61% vote share. On 18.02.2020, the Adjudicating Authority allowed the Appellant to submit a resolution plan within two week. The Adjudicating Authority also directed the CoC to consider the resolution plan besides extending CIRP period by 135 days.
The Appellant submitted their resolution plan along with EMD to the CoC. The Appellant submitted their final resolution plan with Addendum on 05.05.2021. RP informed that the approval of the resolution plan by the CoC was subject to the order reserved by the Adjudicating Authority on 21.01.2021. On 12.05.2021, RP wrote to the SRA to re-submit the plan after including clauses which had purportedly been found missing by RP.
