Trans Asian Shipping Services (P.) Ltd. v. Jain Granites & Projects India Ltd.

INSOLVENCY AND BANKRUPTCY CODE, 2016

--Initiation of liquidation --Directions to file one-time settlement plan Submission of resolution plan --Feasibility of resolution plan--Where the Committee of Creditors asked promoters of corporate debtor to submit one time settlement plan but promoters filed revival plan, which was not feasible in view of CoC, application for initiation of liquidation proceedings against corporate debtor was to be admitted.--Operational creditor filed petition under section 9 for initiating CIRP against the corporate debtor. Adjudicating Authority admitted the petition and appointed the Resolution Professional (RP). In the meeting of Committee of Creditors (CoC), promoters were asked to come with proper One Time Settlement (OTS) plan with bank, but promoters submitted resolution plan in the meeting. CoC rejected the resolution plan, as it was found not feasible. Therefore, RP filed an application for initiation of liquidation proceedings against the corporate debtor. Held: Promoters wanted to work out the suitable revival package for the corporate debtor. CoC asked promoters of corporate debtor to submit OTS but promoters filed resolution plan, which was not feasible in view of CoC, thus, CoC rejected said resolution plan and, application for initiation of liquidation proceedings against the corporate debtor was admitted.