Summary
The Court directed all parties and the Implementation and Monitoring Committee to complete Amtek Auto’s approved resolution plan within four weeks. Following earlier failed attempts to withdraw and prolonged litigation, the successful applicant had deposited Rs.500 crore in the corporate debtor’s account. Both sides had reciprocal obligations to perform. Further delay would defeat the Code’s time-bound resolution objective; the deposited amount was to reach the financial creditors in accordance with the plan or mutual agreement upon implementation.
Issues
- Whether further delay in implementing the approved resolution plan could be permitted after the successful applicant deposited the upfront amount.
- What directions were needed to complete reciprocal obligations and distribute the deposited funds.
Provisions considered
- Section 12, Insolvency and Bankruptcy Code, 2016The statutory objective of timely resolution supported a firm implementation deadline after the exceptional extensions already allowed. (¶¶ 9, 10)
Held
- The successful applicant’s Rs.500 crore had been transferred to the corporate debtor’s account. The approved plan required both sides to perform their obligations mutually and simultaneously, with the monitoring committee supervising implementation. (¶¶ 7, 8)
- Earlier time extensions had been permitted because of litigation and the peculiar circumstances. Further delay after approval and dismissal of the challenge would defeat the purpose of the Code’s prescribed timelines. All concerned parties, including the monitoring committee, were therefore required to complete implementation within four weeks without fail. (¶¶ 9, 10)
- Upon implementation, the deposited Rs.500 crore was to be transferred to the respective lenders or financial creditors under the approved plan or as mutually agreed. Any party’s failure to comply within the directed period would be viewed seriously. (¶ 10)
- The disposition issued implementation directions. The earlier refusal to permit withdrawal and the earlier decision declining contempt jurisdiction formed its procedural background; this judgment did not impose a fresh contempt punishment. (¶¶ 5.1, 5.2, 5.3, 5.4, 10, 11)
Result
Appeal disposed of with directions to complete the approved plan within four weeks and transfer the deposited Rs.500 crore to the lenders or financial creditors in accordance with the stated terms; pending applications disposed of.