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2019 (8) TMI 1707 - Tri - Insolvency and BankruptcyApproval of Resolution Plan - Extinguishment of all liabilities - termination/abatement of all pending proceedings - all liabilities and debt of PRC as admitted by the RP to be paid as provided for in this proposed Resolution Plan - discharge PRC of all liabilities including contingent liabilities - vesting of all licenses - grant of benefit of carry forward and set-off losses under applicable sections of the Income Tax act 1961 - HELD THAT - The Resolution Plan filed with the Application meets the requirements of Section 30(2) of I B Code, 2016 and Regulations 37, 38, 38(1A) and 39 (4) of IBBI (CIRP) Regulations, 2016. The Resolution Plan is also not in contravention of any of the provisions of Section 29A. The Resolution Professional has also certified that the Resolution Plan approved by the CoCs does not contravene any of the provisions of the law for the time being in force - The Resolution Professional has also filed Compliance Certificate in Form H as required under Regulation 39(4) of IBBI (Insolvency Process for Corporate persons) Regulations, 2016. The Resolution Plan annexed with MA/651/2019 filed in CP/540/IB/2018 is hereby approved, which shall be binding on the Corporate Debtor and its employees, members, creditors, guarantors, other stakeholders including statutory authorities involved in the Resolution Plan and the Resolution Applicant - While approving the Resolution Plan, as mentioned above, it is clarified that the Resolution Applicant shall pursuant to the Resolution Plan approved under Sub-section (1) of Section 31 of the I B Code, 2016, obtain all the necessary approval as may be required under any law for the time being in force within a period of one year from the date of approval of the Resolution Plan by this authority or within such period as provided for in such law. Resolution plan approved - moratorium shall cease to have effect from the date of passing of this Order.
Issues Involved:
1. Approval of the Resolution Plan under Section 31(1) of the Insolvency and Bankruptcy Code, 2016. 2. Reconsideration of ineligible Expression of Interest (EoI). 3. Claims of unsecured creditors. 4. Objections from related parties and other creditors. 5. Implementation and management of the Resolution Plan. 6. Reliefs and concessions sought by the Resolution Applicant. Issue-wise Detailed Analysis: 1. Approval of the Resolution Plan under Section 31(1) of the Insolvency and Bankruptcy Code, 2016: The Resolution Professional submitted the Resolution Plan approved by the Committee of Creditors (CoC) for approval under Section 31(1) of the I&B Code, 2016. The CoC, after deliberations, approved the Resolution Plan submitted by M/s. Sai Baba Business Solutions Pvt. Ltd. for a sum of ?28,55,06,654/- with 89.51% voting share in favor. 2. Reconsideration of ineligible Expression of Interest (EoI): Initially, the EoI from Mr. Gagan Bothra was found ineligible. He filed MA/39/2019 seeking reconsideration, and the Tribunal directed the CoC to reconsider his EoI, extending the CIR Process period by 90 days. Despite multiple opportunities, Mr. Gagan Bothra’s EoI and Resolution Plan were ultimately rejected by the CoC due to lack of clarity on Plan amount and Payment terms. 3. Claims of unsecured creditors: The Resolution Professional initially rejected claims of two unsecured creditors, Mr. Mukanchand Bothra and Mr. Jonathan Mouralidarane. The Tribunal, through Orders dated 02.07.2019 and 31.07.2019, directed the Resolution Professional to treat their claims at par with other unsecured Financial Creditors, resulting in a revised payout of 27.53% for all unsecured Financial Creditors. 4. Objections from related parties and other creditors: Related parties and other objectors raised concerns about the payout percentage and the liquidation value of the property. The Resolution Professional clarified that related parties are treated at par with other unsecured financial creditors and the Resolution Applicant has the discretion to distribute the Resolution Plan amount within the provisions of the I&B Code, 2016. 5. Implementation and management of the Resolution Plan: The Resolution Plan detailed the implementation process, including the formation of an Interim Monitoring Committee (IMC) consisting of the Resolution Professional, a nominee of a Secured Financial Creditor, and a nominee from the Resolution Applicant. The Plan also specified that all payments to stakeholders would be completed within 30 days from the approval date. 6. Reliefs and concessions sought by the Resolution Applicant: The Resolution Applicant sought various reliefs, including the extinguishment of all liabilities, termination of proceedings, and exemptions from certain taxes. The Tribunal granted these reliefs, stating that they fall within the parameters of the I&B Code, 2016. Conclusion: The Tribunal approved the Resolution Plan, finding it compliant with Section 30(2) of the I&B Code, 2016, and relevant regulations. The Resolution Plan is binding on the Corporate Debtor and all stakeholders. The moratorium order ceased to have effect from the date of this Order, and the Resolution Professional was directed to forward all records to the IBBI. The approved Resolution Plan became effective immediately, and the Resolution Professional was instructed to notify all participants and the Resolution Applicant.
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