Consortium of M/s. Varma Steels Private Limited & Mr A.V.P. Varma vs State Bank of India & Ors.

The Comp App (AT) (CH) (Ins) No.118/2025, has been preferred by the Appellant, being aggrieved as against the Impugned Order of 20.12.2024, as it has been passed by the Learned Adjudicating Authority in IA No.508/2024, which was preferred in CP(IB) No.104/7/HDB/2020. By virtue of the Impugned Order in question, the Appellant by filing of the aforesaid IA has prayed for the stay of the proceedings for cancellation of the Resolution Plan, and to grant further time till the Financial Creditor fulfils its obligation to take physical possession of the assets of the Corporate Debtor.

Owing to the fact that the Resolution Plan has not been implemented at the behest of the Appellant and rather to the contrary, the order of liquidation has been passed on IA No.10/2024, which is now a subject matter of Company Appeal (AT) (CH) (Ins) No.69/2025, no adjudication is required to be made in the instant Company Appeal because once the liquidation process has already started, there is no question of granting the relief of staying of the cancellation of Resolution Plan. Hence the Appeal lacks merits and the same is accordingly dismissed, leaving all contentions as available under law, open to be argued the Company Appeal (AT) (CH) (Ins) No.69/2025.

In Company Appeal (AT) (CH) (Ins) No.119/2025, the Appellant has put a challenge to the Impugned Order dated 20.12.2024, as it has been passed in IA No.1789/2024 in CP(IB) No.104/7/HDB/2020. By virtue of the Impugned Order, the prayer of the Applicant who is the Successful Resolution Applicant of the Corporate Debtor, seeking direction to extend the timelines for implementing the Resolution Plan including the payment schedule, has been rejected, because the terms and conditions of the Resolution Plan have not been complied by the Appellant (SRA), the Corporate Debtor has been put to liquidation by an order of 20.12.2024, as it has been passed in IA No.10/2024 in CP(IB) No.104/7/HDB/2020. Once the Corporate Debtor has been put to liquidation there is no question of extending the timelines for implementing the Resolution Plan, including the modification of the payment schedule at the behest of the Appellant the Successful Resolution Applicant because the Resolution Plan no longer survives. Thus, for all practical purposes, the Appeal does not require to be adjudicated on merits, as the very cause no more survives. Hence, accordingly the Company Appeal stands dismissed, but questions emanating thereof would still be open to be argued by the Appellant in Company Appeal (AT) (CH) (Ins) No.69/2025, if available as per law. Subject to the above, the Appeal stands dismissed.