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Judgment
These two Appeals have been filed against the same order dated 16th March, 2023 passed by the Adjudicating Authority directing for liquidation of the Corporate Debtor. Company Appeal (AT) Ins. No. 595 & 596 of 2023 has been filed by Atul Paper Pvt. Ltd. who has filed an Application before the Adjudicating Authority being I.A. No. 44/2023 seeking a direction that the Adjudicating Authority may permit the Appellant to submit a Resolution Plan of the Corporate Debtor. Company Appeal (AT) Ins. No. 567 & 568 of 2023 has been filed by the Suspended Management of the Corporate Debtor challenging the Liquidation Order passed in I.A. No. 378 of 2021.
Corporate Insolvency Resolution Process against the Corporate Debtor was triggered by Order dated 25.09.2019 passed by the Adjudicating Authority. The first Form-G was issued by the Resolution Professional inviting Expression of Interest on 14th March, 2020 and again Form-G was issued on 19th August, 2020 inviting EoI. In pursuance of both the Form-G, no Resolution Plan could be received hence the Application I.A. No. 378 of 2021 was filed by the Resolution Professional praying that Corporate Debtor be sent into Liquidation. The Adjudicating Authority allowed the Application I.A. No. 378 of 2021 filed by the RP by impugned order and taken the decision to liquidator the Corporate Debtor and appointed the Resolution Professional as Liquidator. The Application I.A. No. 44 of 2023 filed by the Atul Paper Pvt. Ltd. praying for liberty to submit a plan has also been rejected by the same order.
Mr. Abhijeet Sinha, Learned Counsel appearing for the Appellant-Atul Paper Pvt. Ltd. submitted that Appellant ought to have been given an opportunity to submit a Resolution Plan and the observation made in the Order impugned regarding bona fide of the Appellant were all incorrect. It is submitted that Committee of Creditors is still ready to receive the plan which information has been received by the Appellant hence the Adjudicating Authority ought to have allowed the Appellant to submit a Resolution Plan.
Learned Counsel appearing for the Appellant-Deepak Gupta (Suspended Management) submits that the management intends to revive the Corporate Debtor and in event the Resolution Plan is offered to be submitted, the Adjudicating Authority ought to have accepted.
Learned Counsel for the Liquidator has opposed both the Appeals and submits that in the present case the CIRP came to an end on 11.09.2020 of 270 days and after 11.09.2020, the Adjudicating Authority has excluded 60 days period which took the CIRP till 10.11.2020, thereafter, an Application was filed by the RP for exclusion of time being I.A. No. 5336 of 2020 which was decided and rejected on 23.12.2020 and after rejection of the extension of CIRP Period, there was no option left except to move an Application which was filed by the Resolution Professional praying for liquidation. It is further submitted that twice Form-G was issued but no Resolution Plan was submitted by Atul Paper Pvt. Ltd. and the said Application was filed only in 2023 when an Application was also filed by the Resolution Professional being I.A. No. 355 of 2021 alleging that Appellant is occupying the property of the Corporate Debtor and direction was sought to vacate from the premises. Thereafter, the Application has been filed in 2023 proposing plan.
We have considered the submission of Learned Counsel for the parties and have perused the record.
The CIRP period of 270 days came to end on 11.09.2020 and after exclusion of 60 days came to end on 10.11.2020 and thereafter Application I.A. No. 5336 of 2020 filed by the RP for exclusion of period during which I.A was under consideration, has been rejected by Order dated 23.12.2020. CIRP period came to end and no error was committed by the RP in filing Application seeking Liquidation of the Corporate Debtor.
The Application filed by Atul Paper Pvt. Ltd. in 2023 that they are now interested in submitting a plan has rightly been rejected by the Adjudicating Authority. The case of Atul Paper Pvt. Ltd. is not that they were not aware of the Form-G but they asked some information by the Resolution Professional, which was not given hence they could not file the Resolution Plan. The said submission does not merit acceptance, CIRP period came to end in September, 2020 and no steps was taken by the Atul Paper Pvt. Ltd. showing their inclination or interest in filing the plan for more than two years. The Application filed by Atul Paper Pvt. Ltd. was in 2023 which has rightly been rejected by the Adjudicating Authority.
In so far as the submission of Suspended Management that they want to revive the Corporate Debtor, when no Resolution Plan has been received after issuance of Form-G twice, the submission made by Learned Counsel for the Appellant-Suspended Management cannot be accepted. When Liquidation Order has been passed, it is for the Liquidator to consider the manner and mode of sale of the assets of the Corporate Debtor in accordance with law.
In view of the foregoing discussions and observations, we do not find any merit in both the Appeals, both the Appeals are dismissed.