Whether CoC can withdraw a liquidation application filed before the Adjudicating Authority in order to consider a fresh Resolution Plan | Whether fresh Resolution Plan can be allowed to be submitted after the expiry of 270 days period prescribed under the IBC – Arun Kumar Gupta, RP of Reform Ferro Cast Ltd. – NCLT Kolkata Bench
Hon’ble NCLT Kolkata Bench referring the decision in the matter of Anil Kumar Vs. Jayesh Sanghrajaka, RP (2023) ibclaw.in 494 NCLAT and Swiss Ribbons Pvt Ltd & Anr. v/s Union of India (2019) ibclaw.in 03 SC held that liquidation is to be opted only in two scenarios i.e no resolution plan or the resolution plans submitted are not up to the mark.
The Bench also held that not only can the CoC withdraw a liquidation application in case a viable resolution plan becomes available for consideration, but also that the time limit prescribed under section 12 of the Code will not come in the way of the CoC achieving the object of value maximisation of the Corporate Debtor.