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2019 (5) TMI 1916 - Tri - Insolvency and BankruptcySeeking approval of Resolution Plan - Section 30 (6) and Section 31 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 39 (4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - HELD THAT - Sub-section (2) of section 30 casts duty on the resolution professional to examine the resolution plan received by him to confirm that such resolution plan provides for the payment of insolvency resolution process costs, provides for the payment of the debts of the operational creditors in such manner as may be specified, provides for the management of the affairs of the corporate debtor after approval of the resolution plan the implementation and supervision of the resolution plan. That the resolution plan does not contravene any of the provisions of the law, and that the resolution plan conforms to such other requirements as may be specified by the Board. The resolution professional has certified in detail that he ha examined and verified the resolution plan approved by the COC, in the light of the requirements of the Code and Regulations and that it is compliant to the relevant provisions of the code and regulations. The Resolution Professional has placed the Resolution Plan for our approval - Resolution Professional has certified that the resolution plan does not contravene any provisions of the law for the time being in force. He further certifies that he has submitted to the committee of creditors the resolution plan, which comply with the requirements of the Code and the regulations made there under. Resolution Professional further confirms that the resolution plan and the resolution applicant comply with the requirement of the Insolvency and Bankruptcy Code, 2016, Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. All the requirements of Section 30 (2) are fulfilled and no provision of the law for the time being in force has been contravened. Whether the resolution plan has provisions for its effective implementation is required to be ensured by the Adjudicating Authority in terms of the proviso to sub-section (1) of Section 31 of the Code? - HELD THAT - Punjab National Bank, Muzaffarnagar has submitted a certificate dated 04.05.2019 vide diary dated 18.05.2019 that the Joint Resolution Applicants has deposited ₹ 50 lakhs as earnest money deposit in two installments with respect to the Resolution Plan of the Corporate Debtor - In the facts, it is seen that the Resolution Plan meets the requirements of Section 30 (2) of the Code and that the resolution plan has provisions for its effective implementation. The requirements as per the Code and regulations have been complied with - the resolution plan, as 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; we hereby approve the Resolution Plan under subsection (1) of Section 31 of the Code. Resolution plan is approved - moratorium shall cease to have effect.
Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016. 2. Compliance with Section 30(2) of the Code. 3. Effective implementation of the Resolution Plan. 4. Eligibility of the Resolution Applicants under Section 29A of the Code. 5. Satisfaction of the requirements of the Code and Regulations. Issue-wise Detailed Analysis: 1. Approval of the Resolution Plan: The application was filed by the Resolution Professional for approval of the Resolution Plan submitted by the Joint Resolution Applicants under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016. The Resolution Plan had been duly approved by the Committee of Creditors (CoC) and was placed on record. The Tribunal confirmed that the Resolution Plan was compliant with the Code and Regulations, and thus, approved it under Section 31(1) of the Code. 2. Compliance with Section 30(2) of the Code: The Tribunal examined whether the Resolution Plan met the requirements of Section 30(2) of the Code. The Resolution Professional certified that the Resolution Plan provided for: - Payment of insolvency resolution process costs in priority to other debts. - Payment of debts of operational creditors not less than the amount payable in the event of liquidation. - Management of the affairs of the corporate debtor after approval. - Implementation and supervision of the Resolution Plan. - Conformity to the provisions of the law and other requirements specified by the Board. The Tribunal noted that the Resolution Plan was approved by 100% voting share of the CoC and met all the conditions specified in Section 30(2). 3. Effective Implementation of the Resolution Plan: The Tribunal ensured that the Resolution Plan had provisions for its effective implementation. The Resolution Professional certified that the Resolution Plan included: - The term of the plan and its implementation schedule. - Management and control of the business of the corporate debtor during the term of the plan. - Adequate means for supervising its implementation. The Resolution Applicants appointed a Monitoring Professional to supervise the implementation of the plan for a period of two years. 4. Eligibility of the Resolution Applicants under Section 29A of the Code: The Tribunal confirmed that the Resolution Applicants were eligible under Section 29A of the Code. The Resolution Professional stated that the Resolution Applicants had submitted an affidavit confirming their eligibility, and the corporate debtor’s account was never classified as a 'Non-Performing Asset' by the bank. 5. Satisfaction of the Requirements of the Code and Regulations: The Tribunal was satisfied that all the requirements of the Code and Regulations were fulfilled. The Resolution Plan was compliant with Section 30(2) and Section 31 of the Code and Regulation 38 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Resolution Plan addressed the interests of all stakeholders, and there were no objections from any stakeholders regarding its approval. Conclusion: The Tribunal approved the Resolution Plan, declaring it binding on the corporate debtor, its members, employees, creditors, and other stakeholders involved in the plan. The moratorium order ceased to have effect, and the Resolution Professional was directed to forward all records relating to the CIRP process and the Resolution Plan to the IBBI. The application and petition were disposed of accordingly.
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