2019 (6) TMI 1631 - Tri - Insolvency and Bankruptcy

Seeking directions to approve the resolution plan - section 30(6) and 31 of Insolvency and Bankruptcy Code, 2016 R/w Regulations 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons), R/w Rule 11 of NCLT rules, 2016 - HELD THAT -

Summary

Issues:
Approval of resolution plan under sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The application filed sought directions to approve the resolution plan under the relevant provisions of the Insolvency and Bankruptcy Code, 2016, along with the applicable regulations and rules. The Corporate Debtor, a Private Limited Company, had its insolvency resolution process initiated on a petition filed under Section 9 of the Code. The Resolution Professional conducted multiple CoC meetings and received three resolution plans from interested parties. The plan submitted by M/s. YAP Trading Private Ltd jointly with M/s. Pollent Ecosmart Buildsys Pvt. Ltd was approved by the CoC with 100% voting in the 10th meeting.

The Resolution Plan proposed the takeover of the Corporate Debtor as a going concern, with a total consideration specified. It included provisions for payment to various stakeholders, infusion of funds, and management of the company post-approval. The Resolution Plan also detailed the payment schedule, infusion of working capital, and the formation of a Monitoring Committee for supervision.

The Resolution Plan was thoroughly evaluated for compliance with statutory requirements, including those introduced by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2019. The Resolution Professional certified that the plan met all legal requirements and did not contravene any provisions of the law. The CoC unanimously resolved to submit the plan for approval by the Adjudicating Authority.

The Resolution Plan was approved by the CoC with 100% voting share, and the Resolution Professional sought approval under Section 31(1) of the Code. The plan was found to be in conformity with Section 30 of the Code, meeting all necessary requirements. The Tribunal approved the Resolution Plan, binding it on the Corporate Debtor and all relevant stakeholders involved in the process.

The Tribunal highlighted that certain waivers requested by the Resolution Applicant could not be granted by the Adjudicating Authority, as the power to waive tax dues rested with the concerned authorities. The Resolution Plan was approved with this modification. Consequently, the Resolution Plan submitted by M/s. YAP Trading Private Ltd jointly with M/s. Pollent Ecosmart Buildsys Pvt. Ltd was approved, and the revival plan for the company was set into motion, with the moratorium order ceasing to have effect.

Lastly, the Resolution Professional was directed to forward all relevant records to the Insolvency and Bankruptcy Board of India for database recording, and the pending application was disposed of in accordance with the approved Resolution Plan.