State Bank Of India vs The Consortium Of Mr. Murari Lal Jalan ...

The Supreme Court ruled that the adjustment of the Performance Bank Guarantee (PBG) against the first tranche payment under the Resolution Plan was impermissible as per Regulation 36B(4A) of the IBC, 2016. The Court held that non-implementation of the Resolution Plan by the SRA could lead to liquidation under Section 33(3) of the IBC, 2016, and emphasized the necessity of fulfilling conditions precedent for effective implementation. The appeal was dismissed, affirming the NCLAT's decision regarding the consequences of non-compliance with the Resolution Plan.