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2020 (9) TMI 1224 - Tri - Insolvency and BankruptcySeeking extension of time for implementation of plan which was granted by Committee of Creditors (CoC) for 180 days - HELD THAT - The Resolution provides for appointment of RP as the person incharge to look after the implementation of Resolution Plan. The Resolution Plan has also addressed the issues which resulted into Insolvency of the Corporate Debtor and future business plan so as to such situation does not arise. The revised Resolution Plan filed with the Application meets the requirements of Section 30(2) of 1 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 CoC does not contravene any of the provisions of the law for the time being in force. The Compliance Certificate is placed on record. The Resolution Plan has been approved by the CoC with 100% voting share. The revised Resolution Plan is hereby approved, which shall be binding on the Corporate Debtor and its employees, members, creditors, guarantors and other stakeholders involved in the Resolution Plan including Resolution Applicant - Application disposed off.
Issues:
Approval of Resolution Plan under IBC, 2016, Extension of time for plan implementation, Consideration of claims by GST Department, Capital reduction and equity infusion, Compliance with Section 30(2) of IBC, 2016, Approval of Resolution Plan by CoC, Distribution of funds to stakeholders, Implementation schedule, Appointment of RP, Addressing insolvency causes, Relief and concessions sought, Effectiveness of Resolution Plan. Analysis: Approval of Resolution Plan under IBC, 2016: - IA 617 of 2019 filed for approval of Resolution Plan under Section 31 of IBC, 2016. - Resolution Applicant submitted amended plan within the stipulated time frame. - Resolution Plan complied with Section 30(2) of IBC, 2016 and relevant regulations. - CoC approved the plan with 100% voting share. Extension of Time for Plan Implementation: - IA 398 of 2020 sought extension of 180 days for plan implementation. - CoC granted the extension which was agreeable to the Resolution Applicant. - Amended Resolution Plan submitted within the extended timeline. Consideration of Claims by GST Department: - Pending issues regarding denial of input credit by GST Department. - Claims to be considered by RP while distributing funds to Operational Creditors. - Separate consideration for State Tax Officer's belated claim. Capital Reduction and Equity Infusion: - Resolution Plan involved reduction of existing equity share capital to zero. - Infusion of funds by Resolution Applicant to the tune of ?17.72 crores. - Steps outlined for capital reduction, equity subscription, and debentures issuance. Compliance and Approval: - Resolution Plan met requirements of Section 30(2) of IBC, 2016 and relevant regulations. - Compliance certificate provided by Resolution Professional. - Plan not in contravention of Section 29A. Distribution of Funds and Implementation Schedule: - Stakeholders' claims settled as per the Resolution Plan. - Detailed implementation schedule provided for various payments. - RP appointed to oversee plan implementation. Relief and Concessions Sought: - Resolution Applicant may seek concessions as per prevailing laws. - Approval of Resolution Plan does not automatically waive legal proceedings. Effectiveness and Implementation: - Resolution Plan approved and binding on all stakeholders. - Capital reduction permission granted, with necessary amendments to be filed. - Plan to be effective immediately, moratorium ceases, and records forwarded to IBBI. Conclusion: The Tribunal approved the Resolution Plan, addressed pending issues, and provided detailed directions for effective implementation. Compliance with legal requirements, distribution of funds, capital reduction, and appointment of RP were key aspects considered. The Resolution Plan was deemed effective immediately, with necessary steps outlined for compliance and implementation.
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