CoC of Meenakshi Energy Ltd. Through State Bank of India Vs. Consortium of Prudent ARC Limited & Vizag Minerals and Logistics P Ltd. – NCLAT Chennai Bench
Case Citation – 492 NCLAT
Date of Order- 25th Oct 2021
FACTS
AA on 07-11-2019 had admitted the Section 7 IBC application filed by State bank of India (FC) initiating the CIRP against the Meenakshi Energy Ltd Telangana (CD). The Resolution Professional on 21-01-20 had issued the First Form-G inviting Expression of Interest from prospective RA, Resolution Professional had re-issued the Form-G on 25-01-2021 because of the perceived increase in value of the CD. The last date for submission of plan was extended till 08-03-2021. The plan of the Consortium of prudent ARC limited & Vizag Minerals and Logistics Pvt Ltd (First Respondent) was filed on 06-03-2021. As a matter of fact, on 05-03-2021 Sindhu Trade Links Ltd (another Prospective RA) submitted its plan. The Vedanta submitted its plan on 16-04-2021after the due date of 08-03-2021(the expiry of 330 days period). The COC on 20-04-2021 had decided to consider the Vedanta Plan.
Question
Whether the plan of Vedanta which was submitted after the due date 08-03-2021 should be consider by the COC or RP?
Relevant Sections
Section 12 states the timeline for completion of insolvency resolution process.
Decision
Tribunal relied essentially on the ground that since the plan of the applicant is disclosed to the COC and the contents of the same have been made know to all the creditors pursuant to disclosing all the confidential details of the appellants plan and not maintaining secrecy of fidelity/ confidentiality comes to a resultant conclusion that a plan of Vedanta which was submitted after the due date and as such the same is not be considered either by COC or the Resolution professional because of the breach of confidentiality of the plan.
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