NCLAT : In Ashish Mohan Gupta vs. Hind Motors Limited

Once the ‘Resolution Process’ reaches finality and the ‘Committee of Creditors’ reject the ‘Resolution Plan’ in view of Sections 30 & 31 of the ‘I&B Code’, the Adjudicating Authority had no other option but to order for initiation of Liquidation Process as in such case, there is no occasion to grant further extension of time, as all the procedural has been followed in letter and spirit.

The ‘Committee of Creditors’ have rejected the only ‘Resolution Plan’ submitted by the Appellant – Mr. Ashish Mohan Gupta, who is the Promoter of the ‘Corporate Debtor(s)’, the Adjudicating Authority by impugned order had no option but to pass order under Section 33(1) for initiation of liquidation process by appointing a ‘Resolution Professional(s)’ as Liquidator(s) of respective ‘Corporate Debtor(s)’.

The Appellate Tribunal dismissed the appeal stating that once the ‘Resolution Process’ reaches finality and the ‘Committee of Creditors’ reject the ‘Resolution Plan’ in view of Sections 30 & 31 of the ‘I&B Code’, the Adjudicating Authority had no other option but to order for initiation of Liquidation Process as in such case, there is no occasion to grant further extension of time, as all the procedural has been followed in letter and spirit.

Link : http://ibcode2016.com/wp-content/uploads/2018/06/Shri-Ashish-Mohan-Gupta-26.04.2018.pdf