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2019 (7) TMI 1739 - Tri - Insolvency and BankruptcySeeking approval of the Resolution Plan - section 30(6) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - The Resolution Professional has certified that the approved Resolution plan provides for payment of insolvency resolution process cost on priority in accordance with the Regulations and IBC, 2016. As per regulation 38(1)(a) of the CIRP regulations, the source of payment of CIRP cost and repayments of all unrelated Financial Creditors on priority basis has been identified and Resolution Applicant will sell one of his own properties and pay the entire CIRP cost and repayment of Unrelated Financial Creditors worth ₹ 21 Crores from that funds on priority basis - the Resolution Plan meets the requirements of section 30(2) of the Code and that the resolution plan has provisions for its effective implementation. Moreover, the Resolution Plan has been unanimously approved by the CoC and has been submitted in compliance of Section 30 of the Code for approval. Resolution Professional has confirmed that the Resolution Plan is compliant to sub-sections (a) to (f) of Section 30(2) of the Code and also comply Regulation 38 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. He has further certified that it has dealt with the interests of all stakeholders. The resolution plan approved by the CoC, is in accordance with the sub-section (2) of Section 30 read with Section 31 of the Code and as the Resolution Applicant is not disqualified under section 29A of the Code and as no infirmity seems to have brought out upon screening of the Resolution Plan - Resolution Plan approved.
Issues:
Approval of Resolution Plan under the Insolvency and Bankruptcy Code, 2016. Analysis: The application filed by the Resolution Professional sought approval of the Resolution Plan under section 30(6) of the Insolvency and Bankruptcy Code, 2016, along with Regulation 39(4) of the Insolvency and Bankruptcy Board of India Regulations. The Resolution Plan was approved by the Committee of Creditors (CoC) and was in compliance with various sections and regulations of the Code. One of the financial creditors had initiated Corporate Insolvency Resolution Process against the Corporate Debtor, leading to the appointment of an Interim Resolution Professional. The Resolution Professional managed the Corporate Insolvency Resolution Process under various sections of the IBC, and an extension of 90 days was granted beyond the initial 180-day period. Claims were received from Financial Creditors, and the CoC was constituted with unrelated unsecured Financial Creditors. Prospective resolution applicants were invited, and three plans were received, out of which one plan was found satisfactory by the CoC. The Resolution Plan was examined and found consistent with the requirements of section 30(2) of the Code. The approved Resolution Plan provided for the payment of insolvency resolution process costs, repayment of debts, management of the Corporate Debtor, and compliance with the law. The plan also covered the distribution of dues of claimants and CIRP costs as prescribed under section 53 of the IBC, 2016. The Resolution Plan envisaged the continuation of the Corporate Debtor as a going concern, with the previous management running the company. Affidavits were obtained to confirm the eligibility of the Resolution Applicant under section 29A of the Code. The Resolution Plan was unanimously approved by the CoC and was found compliant with the provisions of the Code and regulations. There were no objections from stakeholders, and the Adjudicating Authority approved the plan as it met the requirements of the Code. The Resolution Plan was declared binding on the corporate debtor, members, employees, creditors, and other stakeholders. The moratorium order passed under section 14 of the Code ceased to have effect, and all records were to be forwarded to the IBBI for recording. In conclusion, the Resolution Plan was approved by the Tribunal, and the necessary steps were taken to ensure its effective implementation and compliance with the Code and regulations.
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