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Judgment
O R D E R
18.12.2024 I.A. No. 7954 of 2024 This is an application praying for condonation of 14 delay in filing the appeal. The sufficient cause has been shown in paragraphs 2e to j of the delay condonation application.
Delay is condoned.
Company Appeal (AT) (Insolvency) No. 2134 of 2024
Heard Learned Counsel for the parties.
This appeal has been filed against the order dated 30.07.2024 by which order Adjudicating Authority has allowed the I.A. No. 3945 of 2022 directing liquidation of the Corporate Debtor. The Appellant is a Successful Resolution Applicant. Resolution plan was approved on 21.07.2021, when the SRA could not deposit the amount as per the time lines fixed in the resolution plan. JLM meeting took place on 04.10.2022 and 16.11.2022 where it was decided to apply for liquidation for of the Corporate Debtor. Consequently, I.A. No.3945 of 2024 was filed which was allowed by the impugned order.
Learned Counsel for the Appellant challenging the order submits that the plan could not be implemented since the father of the SRA was not well and suffering from cancer and further submits that Appellant is at present ready to deposit the entire amount.
We have considered submission of the Counsel for the Appellant and perused the record.
The time line for deposit having contravened and the JLM took a decision on 04.10.2022 filed an application for liquidation which was filed in the October, 2022 itself and has been allowed by the impugned order. The fact that the Appellant had any personal problems of illness of father of the Appellant may not be a ground to condone the non-implementation of the plan within the time line. The resolution plans are to be implemented as per the terms and conditions of the plan and on non-implementation of the plan, liquidation is the only option open to the Adjudicating Authority which has rightly been directed. So far as the Appellant’s submissions that the Appellant is ready to deposit the entire amount, at this stage are unable to accept the said prayer. Learned Counsel for the Appellant submits that the Appellant is MSME. Appellant being MSME it shall be always open for the Appellant to submit scheme of arrangement in the liquidation to the liquidator as per Regulation 2A of the Liquidation Regulations, 2016 which may be considered before proceeding further in the liquidation by the Liquidator. With these observations, we dismiss the Appeal.