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Judgment
The work of the Tribunal has been closed due to Covid-19 pandemic as per letter dated 22.03.2020 and subsequent follow up orders of the Principal Bench, National Company Law Tribunal. The Principal Bench vide Order dated 31.07.2020, constituted this Bench for hearing of the urgent matters through Video Conference (VC).
The matter is taken up on VC.
IA 1072 of 2020:-
This is an application filed by the sole Resolution Applicant is before us with the following prayers.
a. "It is submitted that considering the payment of upfront amount of Rs. 4 Crores and the arrangement of the remaining amount by way of bank finance and period of full and final settlement of all the claims under the resolution plan within 6 months, it may be considered that the amendment in the relevant clause of performance guarantee in RFRP be considered.
b. Necessary directions may be given to the COC & RP to make changes in the RPRP as sought by them in their communication dated 08.07.2020 through resolution professional to the lead applicant".
The Applicant is the sole Resolution Applicant for the resolution of the Corporate Debtor for a total outlay of Rs. 23 Crores. The only problem which the Applicant facing is a performance guarantee fixed by the CoC in the offer documents that Resolution Applicant is required to provide the performance guarantee of Rs. 25 Crores at the time of submission of the Resolution Plan.
The Applicant submits that the performance guarantee is on the higher side when the Resolution Plan itself is for Rs. 23 Crores. He submits that the performance guarantee is fixed by the CoC has to be scaled down. When this point raised before the CoC, it was of the view that an order, by the Adjudicating Authority on an Application by the Resolution Applicant, scaling down the performance guarantee would satisfy the CoC for considering the Plan on the scaled down performance guarantee.
We feel that this could have been done by the CoC itself in its commercial wisdom. However, considering the facts and circumstance of the case and the time required for the CoC to take such a decision, in the interest of justice we order that the CoC may consider the Resolution Plan by accepting the bank performance guarantee of Rs. 3 Crores as agreed to be provided by the Resolution Applicant. The Application is accordingly disposed of.
IA 1136 of 2020:-
In view of the order passed in IA No. 1072 of 2020, the present Application bearing No. 1136 of 2020, with similar prayers is dismissed of as infructuous.