2018 (7) TMI 2107 - Tri - Insolvency and Bankruptcy

Approval of Resolution plan - CIRP process - Corporate Debtor committed default in paying loan instalment granted and disbursed to them - HELD THAT - Part Il and Part IV of the plan deal with the mandatory requirements to be complied with. The provisions are made for payment of insolvency resolution process cost as required under section 30(2)(a) of I B Code. The provision has also been made for payment of debt of operational creditors (including employees and workmen) subject to provision of section 53 of I B code. In Schedule 2 of Part IV of the plan, the details are given as to how the affairs of the Corporate Debtor would be managed. It is also stated as to what manner the plan will be implemented by the CRPS and the Resolution Applicant. I also find that the plan does not contravene any provision of law. The plan has been approved by the COC by 100% voting shares. There are no infirmity in this plan. The Resolution Professional has certified that the plan meets all requirements of the Code and the Regulations as contemplated in the Regulation 37(4). The resolution plan of Liberty I-louse Group Pte Ltd. as approved by the COC under sub-section (4) of ection 30 of I B Code meets all requirements as stated under sub-section of section 30 of I B Code - Resolution Plan approved.

Summary

Issues:
- Corporate Insolvency Resolution Process (CIRP) under section 7 of the Insolvency & Bankruptcy Code, 2016.
- Approval of Resolution Plan by the Committee of Creditors (COC).
- Consideration of Resolution Plans by the Adjudicating Authority.
- Compliance with mandatory requirements of the Insolvency & Bankruptcy Code.
- Approval and binding nature of the Resolution Plan.

The National Company Law Tribunal, Kolkata, dealt with a case involving the Corporate Insolvency Resolution Process (CIRP) initiated by the State Bank of India against a Corporate Debtor, Zion Steel Ltd., for defaulting on loan payments. The Resolution Professional, Mr. Sumit Binani, oversaw the process, including the admission of CIRP, appointment of Interim Resolution Professional, and subsequent confirmation as Resolution Professional by the COC. Various resolution plans were submitted and considered during the CIRP, with one plan from Liberty House Group Pte Ltd. being initially accepted by the COC. However, concerns arose regarding the eligibility of the bidder under section 29A of the I&B Code. After clarification, the plan was found acceptable. Extensions were granted for the CIRP period, and applications from different parties, including workmen unions and erstwhile resolution applicants, were addressed by the Adjudicating Authority.

The Adjudicating Authority carefully reviewed the Resolution Plan approved by the COC, ensuring compliance with the mandatory requirements of the Insolvency & Bankruptcy Code. The plan included provisions for resolving workmen dues and managing the affairs of the Corporate Debtor. After thorough examination and confirmation by the Resolution Professional, the Adjudicating Authority approved the Resolution Plan of Liberty House Group Pte Ltd. under section 31(1) of the I&B Code. The order made the plan binding on all relevant parties, marking the commencement of the revival plan for the company. Additionally, the moratorium order under Section 14 was lifted, and the Resolution Professional was directed to transfer all related records to the Insolvency and Bankruptcy Board of India.

In concluding the judgment, the Adjudicating Authority commended the efforts of the Resolution Professional in ensuring the approval of the Resolution Plan, acknowledging the role in revitalizing the struggling company. The case was disposed of, with provisions for issuing certified copies of the order to concerned parties upon request. The detailed analysis and approval of the Resolution Plan highlighted the meticulous consideration of legal requirements and the significance of COC approval in the insolvency resolution process.