JUDGMENT :

Dhananjaya Y Chandrachud, J

1. This appeal arises from an order of the National Company Law Appellate Tribunal¹[“NCLAT”] dated 8 September 2020.

2. The appellant submitted a Resolution Plan for a company by the name of Tecpro Systems Limited²[“Corporate Debtor”] which was undergoing the Corporate insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016³[“IBC”]. The Resolution Plan was approved by the Committee of Creditors⁴[“CoC”] on 8 March 2019 with a majority of 89.92%. The Resolution Plan was approved by the National Company Law Tribunal⁵[“NCLT”] on 15 May 2019. The appellant accordingly deposited an amount of Rs 5 Crores in an Escrow Account of the Corporate Debtor. However, the appellant did not fulfil its further obligations, including equity infusion, under the Resolution Plan despite numerous opportunities over a period of six months. On 11 November 2019, the CoC voted, by a majority of 99.28%, for the liquidation of the Corporate Debtor as a result of the failure of the appellant to implement the Resolution Plan. On 16 January 2020, the NCLT allowed the liquidation of the Corporate Debtor to proceed. The order of the NCLT was upheld by the NCLAT