Order of NCLAT New Delhi directing the promoters to file Affidavit

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI had issued an order on the Company Appeal (AT) (Insolvency) No. 1477 of 2019 filed by one of the promoters of the Corporate Debtor (Appellant) and had allowed the Appellant to file an additional affidavit enclosing Terms of Settlement and scheme, if any, for paying all the creditors, within one week. The Respondent, Resolution Professional, LIC Housing Finance Ltd. and Committee of Creditors are allowed to file their respective reply affidavits within one week from the date of receipt of additional affidavit enclosing terms of settlement/scheme. The matter is posted for 05th February, 2020. Click here to download the copy of the order dated 03rd January, 2020

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Order of NCLT Kochi directing the promoters to cooperate with CIRP

Based on the  MA/44/KOB/2019 filed by the Resolution professional seeking co-operation of the Corporate Debtor for the CIRP Process, the NCLT,Kochi Bench and passed the following order

1. The suspended Directors are directed to extend all support and co-operation to the Resolution Professional in the CIR Process so as to protect and maximise the value of the Corporate Debtor and also to ensure that it remains as a going concern. 

2. (ii) The suspended Directors are also directed to furnish an undertaking to the RP that the vehicles will be kept in running condition and physically handed over to RP as and when required. 

3. (iii) The RP is directed to take appropriate steps to preserve and maximise the value of the Corporate Debtor and look for a Resolution Applicant at the earliest. 

Click here to download the copy of the order dated 10th January,2020 

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Order of NCLT Kochi for condoning delay in appointing Registered valuers and submission of Information Memorandum.

Based on the  IA/26/KOB/2019 filed by the Resolution professional seeking condonation of delay appointing the Registered Valuer and submission of the Information Memorandum, the Hon:NCLT, Kochi Bench passed the following order

1. (i) The delay of Forty-Four days in the appointment of Registered Valuers is condoned and the Resolution Professional is directed to appoint the Registered Valuers within Three days from this date. 

2. (ii) The delay of Thirty-seven days in the submission of Information Memorandum is condoned and the Resolution Professional is also directed to make arrangements for the Statutory Auditing for the year 2018-19 immediately and submit the Information Memorandum to the members of the Committee of Creditors on or before 05.02.2020. 

Click here to download the copy of the order dated 21st January, 2020

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Order of NCLT Kochi for excluding 32 days from counting 180 days of CIRP

Based on the  MA/20/KOB/2020 filed by the Resolution professional seeking exclusion of 32 days from the initial 180 days which was lost due to Appeal No 1130 & 1131 filed before NCLAT the Hon:NCLT, Kochi Bench passed the following order:-

 

Excluded 32 (Thirty Two) days, which has been lost due to the order passed by Hon: NCLAT on Appeal No 1130 of 2019 and Appeal No 1131 of 2019, while computing the 180 (One Hundred and Eighty ) days’ time period of Corporate Insolvency Resolution Process and accordingly revised the date of completion of Corporate Insolvency Resolution Process from 13th April, 2020 to 15th May, 2020, unless extended further.

Copy of the Order on MA/20/KOB/2020

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Order dated 27th August, 2020 of NCLT Kochi Bench on MA/70/KOB/2020

The Hon’ble NCLT had granted the following two reliefs out of the three reliefs sought for in MA/70/KOB/2020 filed by the RP and disposed of the matter accordingly:

1. Issue necessary directions to the Incident Commander and Sub Divisional Magistrate Fort Kochi to protect and upkeep the assets, as seen in the video recording, of the Corporate Debtor and ensure a proper security system in the premises.

2. Issue necessary directions to the Incident Commander and Sub Divisional Magistrate Fort Kochi to ensure that the functioning of the “Covid Care Centre” in the premises of the Corporate Debtor is not hindering the Corporate Insolvency Resolution Process in any manner, whatsoever.

 

Copy of the Order on MA/70/KOB/2020

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Order on the Application for extension of period of CIRP beyond 180 days

The RP had filed MA/174/KOB/2020 before the Hon’ble NCLT, Kochi Bench seeking extension of time period for completion of the Corporate Insolvency Resolution Process for a period of 90 (Ninety) days or such period as the Hon’ble Tribunal may deem fit and reasonable and the Hon’ble Tribunal, vide its order dated 02nd November, 2020 on IA/174/KOB/2020, allowed the extension of time period for completion of Corporate Insolvency Resolution Process to a further period of 90 days commencing from 18th October, 2020 and directed the RP to meticulously adhere to the Rules and Regulations issued by IBBI in this regard from time to time and complete the Corporate Insolvency Resolution Process on or before 16th January, 2021.

 

Copy of the Order on MA/174/KOB/2020

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Order on MA/140/KOB/2020 filed by State Tax Officer (Works Contract), SGST Department, Ernakulam

The State Tax Officer (Works Contract), SGST Department, Ernakulam, had filed the Application bearing No. MA/140/KOB/2020 against the Applicant before the Hon’ble National Company Law Tribunal, Kochi Bench under section 60(5) of the Insolvency and Bankruptcy Code, 2016 to set aside the partial rejection of claim by the Resolution Professional and allow the admission of the claim amount submitted by the GST Department in full. After perusing the whole case records, the Hon’ble NCLT, Kochi Bench, vide its order dated 04th November, 2020, had directed the Applicant to file an appeal before the Joint Commissioner, State Sales Tax Department for re-assessment of the GST amount payable, based on the audited financial statements for the Financial Year 2018-19 and the Notification No. 9/2017- Integrated Tax (Rate) dated 28.06.2017 issued by the Government of India within two weeks from the date of the order.

On 20th November, 2020, the RP had filed a clarification petition before the Hon’ble NCLT, Kochi Bench seeking the following clarifications from the Bench:

1. Issue necessary clarification to the Applicant as to whether the Resolution Professional has the authority under Regulation 13 and 14 of the CIRP Regulations to file an appeal before the Joint Commissioner, GST, as part of the verification and determination of a claim submitted by the GST department in Form B.

2. Issue necessary clarifications to the Applicant as to whether the judgement, decree or order, if any, passed by the Appellate Authority under CGST Act pursuant to the Appeal, against the Corporate Debtor shall be binding on Corporate Debtor when the moratorium declared by the Hon’ble National Company Law Tribunal Bench by virtue of section 14 of the Insolvency and Bankruptcy Code is in effect.

3. Issue necessary clarifications to the Applicant as to whether the requirement of the pre-deposit of Rs. 3,79, 64,304/- (Rupees Three Crore Seventy-Nine Lakh Sixty-Four Thousand Three Hundred and Four Only) mandated under Section 107 of the GST Act, shall be prejudicial to the interest of the Corporate Insolvency Resolution Process, as the said section is inconsistent with Regulation 13 and 14 of the CIRP Regulations due to the overriding effect of Insolvency and Bankruptcy Code, 2016 over the Goods and Service Tax Act, 2017.

4. Pass such other order /directions as this Hon’ble Bench may deem fit and proper in the facts and circumstances of the case.

Copy of the order on MA/140/KOB/2020

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Order on MA filed by Mr. P Jayagovind

Mr. P Jayagovind had filed MA/177/KOB/2020 before the Hon’ble National Company Law Tribunal, Kochi Bench under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 to set aside the rejection of claim submitted by him.  The RP had filed the Counter Statement to the Application. After perusing the whole case records, the Hon’ble Tribunal had directed the Applicant to file the rejoinder, if any, within two weeks and the matter is posted for pronouncement of orders on 14th December, 2020.  The Hon’ble Tribunal, in its order dated 14th December, 2020, stated as follows:

“Since the Resolution Professional (R.P) had already received Resolution Plan from the prospective Resolution Applicant and the same is under consideration of the Committee of Creditors; the applicant is directed to submit all the documents requested for by the Resolution Professional through his letter dated 02.11.2020, without fail, in any case within two weeks from today. If the applicant produces the documents sought for by the R.P within two weeks, the R.P is directed to explore all possibilities to settle the claim of the applicant and give a reply to the applicant before finalisation of the Resolution Plan.” The matter is disposed of accordingly.

Copy of the Order on MA/177/KOB/2020

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Order on MA filed by OCS Group (India) Private Limited

OCS Group (India) Private Limited, the operational creditor of PVS Memorial Hospital Private Limited had filed MA/161/KOB/2020 IN CP(IB)/28/KOB/2019 before the Hon’ble NCLT, Kochi Bench to direct the Resolution Professional to receive, verify and admit the claim submitted by them. The RP had filed the Counter Statement to the MA/161/KOB/2020. After perusing the whole case records, the Hon’ble Tribunal had directed OCS Group (India) Private Limited to withdraw the case filed before JMFC-II Court, Thane so as to consider the claim by the RP and also directed to file an affidavit before the Tribunal stating that they will withdraw the case filed before JMFC-II Court, Thane within a week. On that note, the matter is posted for pronouncement of orders on 18th December, 2020.  The Hon’ble Tribunal, in its order dated 18th December, 2020, stated as follows:

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“In this connection it may be noted that the Applicant cannot file cases before the Civil Court and this Tribunal for the same purpose, that will definitely amount to double jeopardy, which is prohibited under the Law. Moreover, even though the learned counsel was directed to withdraw the case pending before the JMFC-II, Thane, in order to consider his claim by the Resolution Professional, he has not followed that direction, instead, he produced certain citations, which are not relevant to the issue involved in this matter. Since the Applicant has not withdrawn the case pending before the JMFC-II, Thane (Maharashtra), this Tribunal cannot direct the Resolution Professional to consider their case during the Insolvency Process. Hence this M.A is dismissed. However, the dismissal of this M.A will not stand in the way of the Resolution Professional in considering the claim put forward by the applicant, provided they withdraw the case filed before the JMFC-II, Thane (Maharashtra) and produce the order of that court allowing withdrawal of case filed before that court. The Resolution Professional can decide the date by which the applicant has to produce the orders of JMFC-II, Thane (Maharashtra) as the Resolution Process is in the completion stage, because a Resolution Applicant has already been selected by the CoC.” The matter is disposed of accordingly.

Copy of the Order on MA/161/KOB/2020

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Approval of Resolution Plan

The Hon'ble NCLT, Kochi Bench , the Adjudicating Authority had approved the Resolution Plan submitted by Lissie Medical Institutions and with the below directions, the Resolution Plan of M/s. Lissie Medical Institutions is approved and IA(IBC)/13/KOB/2021 in TIBA/11/KOB/2019 stands Allowed.

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1. The Application filed by the RP is allowed. The Resolution Plan submitted by the Resolution Applicant M/s Lissie Medical Institutions annexed to the Application is hereby approved. The Resolution Plan attached with this order shall become effective from this date and shall form part of this order. It shall be binding on the Corporate Debtor, its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan.

2. The approval of the Resolution Plan shall not be construed as waiver of any statutory obligations of the Corporate Debtor and shall be dealt by the appropriate Authorities in accordance with law. Any waiver sought in the Resolution Plan, shall be subject to approval by the Authorities concerned.

3. The Memorandum of Association (MoA) and Articles of Association (AoA) shall accordingly be amended and filed with the Registrar of Companies (RoC) concerned for information and record. The Resolution Applicant, for effective implementation of the Plan, shall obtain all necessary approvals, under any law for the time being in force, within such period as may be prescribed.

4. Henceforth, no creditors of the erstwhile Corporate Debtor can claim anything other than the liabilities referred under para 10(c)/(d) above.

5. The moratorium declared under Section 14 of the Code shall cease to have effect from this date.

6. This Bench hereby discharges Shri Bijoy Prabhakaran Pulipra from the duties of Resolution Professional and the RP is directed to handover all records, premises and documents to the Monitoring Committee / Resolution Applicant to finalise the further line of action required for starting of the operation.​

7. The Resolution Applicant shall have access to all the records/premises/documents through the Monitoring Committee to finalise the further line of action required for starting the operation.

8. The directions embodied and period of implementation provided herein above shall be effective from the date of this Order.

9. The Applicant and the Monitoring Committee shall supervise the implementation of the Resolution Plan and the Applicant shall file status of its implementation before this Tribunal.

10. Certified copy of this Order be issued on demand to the concerned parties, upon due compliance. Liberty is hereby granted for moving any Miscellaneous Application, if required, in connection with implementation of this Resolution Plan.

11. The Applicant shall forward all records relating to the conduct of the CIRP and the Resolution Plan to the IBBI along with copy of this Order for information.

12. The Applicant shall forthwith send a copy of this Order to the CoC and the Resolution Applicant for necessary compliance.

13. With the above directions, the Resolution Plan of M/s. Lissie Medical Institutions is approved and IA(IBC)/13/KOB/2021 in TIBA/11/KOB/2019 stands Allowed.

 

Click here to download the full text of the Order onIA(IBC)/13/KOB/2021 in TIBA/11/KOB/2019

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