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D. Y. CHANDRACHUD, J. B. PARDIWALA, MANOJ MISRA
State Bank of India – Appellant
Versus
Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch – Respondent
Question 1? Question 2? Question 3?
Key Points: - The judgment centers on whether adjusting the PBG against the first tranche payment was permissible under the Resolution Plan and IBC regulations. (!) (!) (!) (!) - It evaluates whether non-implementation of the Resolution Plan by the SRA can lead to liquidation under Section 33(3) IBC, 2016. (!) (!) (!) - It discusses whether timely implementation of the Resolution Plan is an objective or requirement under IBC 2016 and related timelines/extensions. (!) (!) (!) - The Court clarifies that the Lender’s Affidavit terms cannot override the Plan, and that PBGs must adhere to Regulation 36B(4A) and RFRP/Plan provisions. (!) (!) (!) (!) (!) - It addresses whether the Supreme Court’s directions to deposit Rs. 150 Crore cash by 31.01.2024 were binding and whether failure to deposit triggers liquidation. (!) (!) (!) - It considers propriety of the NCLAT’s conclusions regarding airport dues, PF/Gratuity, and other CPs, and whether these findings were perverse or lawful. (!) (!) (!) - The decision ultimately directs liquidation under Article 142 due to failure to implement, and upholds that Plan modification or withdrawal post-approval is not permitted. (!) (!) (!)
JUDGMENT :
J.B. PARDIWALA, J.
For convenience of exposition, this judgment is divided into the following parts: -
| INDEX | |
| A. | FACTUAL MATRIX |
| B. | SUBMISSIONS ON BEHALF OF THE APPELLANTS i. Issue No.1: Adjustment of PBG of Rs. 150 Crore towards the first tranche payment ii. Issue No. 2: Non-payment of Airport dues iii. Issue No. 3: Non-payment of Workmen and Employees’ dues iv. Issue No. 4: Achievement of Effective Date v. Issue No. 5: Non-fulfilment of Conditions Precedent |
| C. | SUBMISSIONS ON BEHALF OF THE RESPONDENTS |
| D. | ISSUES FOR DETERMINATION |
| E. | ANALYSIS i. Whether the Performance Bank Guarantee (PBG) could have been adjusted against the first tranche payment which was to be made under the Resolution Plan, within 180 days from the Effective Date in contravention of the order of this Court dated 18.01.2024, the terms of the Resolution Plan and the provisions of law? a. Whether the Conditions Precedent were fulfilled by Respondent No.1/SRA and the Effective Date was fixed at 20.05.2022? b. Whether the NCLAT could have directed the Performance Bank Guarantee (PBG) to be adjusted against the first tranche payment which |
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