SRA cannot withdraw Resolution Plan on the ground that lapse of more than five years and the deterioration of the financial status of the Corporate Debtor, the Resolution Plan is no more implementable – EBIX Singapore Pte. Limited Vs. Mr. Mahendra Singh Khandelwal RP of Educomp Solutions Ltd. and Anr. – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) As per Section 30(2)(d) and Section 31(1) proviso, what is significant is that Resolution Professional has to look into and examine that Resolution Plan provides for implementation and supervision of the Plan. The requirement of the law is that the Plan contains provision for effective implementation. It is not the case before us that Plan does not contain effective provision for implementation. The Adjudicating Authority in the impugned order specifically noticed the provisions of the Resolution Plan, which provides for implementation. It is not the case before us that there are no provisions in Resolution Plan for effective implementation.
(ii) The submission of the Appellant that in view of lapse of more than five years and the deterioration of the financial status of the Corporate Debtor, the Plan is no more implementable, cannot be accepted as a ground to withdraw from the Resolution Plan.
(iii) No valid grounds are raised by the Appellant, before the Adjudicating Authority to reject the Application filed by the RP for approval of the Resolution Plan in IA No. 195 of 2018.