The Tax Publishers 2019 TaxPub(CL) 0015 (NCLAT-Chen) : (2018) 150 SCL 0666

 

Ramkumar SV v. Ingen Capital Group LLC

 

INSOLVENCY AND BANKRUPTCY CODE, 2016

--Approval of resolution plan --Non-deposit of upfront payment Essential need of funds --Direction to deposit one third of total upfront payment--Where resolution applicant did not infuse funds within the period prescribed in the approved resolution plan, thus, in order to save the corporate debtor from being collapsed, it was just to direct resolution applicant to deposit one-third of the total upfront payment to financial creditors.--Resolution Applicant (RA) placed the resolution plan for approval of CoC with a proposal to bring upfront payment within 30 days. Financial creditors approved the resolution plan. However, neither money nor any assurance of such payment came from RA even after completion of 30 days. Thus, Resolution Professional (RP) filed an application against RA for not bringing the upfront payment. Held: It was observed that financial creditors approved the resolution plan believing that the resolution applicant would infuse funds within the period of 30 days, but neither money was paid nor any assurance of payment of money was given by RA even after completion of said period. If RA would not pay money, company would collapse. Thus, it was essential on the part of RA to deposit the amount as prayed by the RP. Hence, RA was directed to deposit one-third of the total upfront payment to financial creditors within five days.

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