2021 (1) TMI 1230 - Tri - Insolvency and Bankruptcy

Seeking approval of Resolution Plan - section 31 of IB Code and Regulation 39 (4) of The Insolvency and Bankruptcy Board of India (Insolvency Process of Corporate Persons) Regulations, 2016 - HELD THAT - The perusal of the Resolution Plan shows that the Financial Creditor will get a sum of ₹ 10,00,000/- against the their total claimed amount of ₹ 12,44,9,127/-. The Operational Creditors would receive a sum of ₹ 4,28,000/- as against their total claimed of ₹ 8,56,85,662/- and provisions for statutory liabilities has been made to the tune of ₹ 1,07,800/- and Resolution Applicant also made the provisions of contingent liabilities of ₹ 1,00,000/-. There is no claim submitted by the workmen. Thus, in sum and substance, the Resolution Plan provides for settlement of claim of various stakeholders. It is also noted that the Resolution Plan provides the background of successful Resolution Applicant and its associates. It also provides the details of financial capabilities of the successful Resolution Applicant. The Resolution Plan also provides implementation of Resolution plan within 60 days from the date of approval of the plan by this Authority - the Resolution plan also provides for appointment of RP as the person in-charge 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 again. Thus, the revised '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, affidavit under section 29A has also been filed by the Resolution Applicant. 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 Resolution Plan is approved - the approved 'Resolution Plan' shall become effective from the date of passing of this order - application allowed.

Summary

Issues:
Approval of resolution plan under section 30(6) of Insolvency and Bankruptcy Code, 2016 read with section 31 and Regulation 39(4) of CIRP Regulations.

Analysis:
The application was filed by the Resolution Professional seeking approval of the resolution plan after it was approved by the Committee of Creditors (COC) with 100% vote. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) and an Interim Resolution Professional was appointed. The COC was constituted, and various meetings were held to discuss and modify the resolution plan. The Resolution Applicant proposed to pay off the creditors, including CIRP costs and contingent liabilities. The Resolution Plan outlined payment details for various creditors, including operational creditors and statutory dues. The Resolution Applicant agreed to settle pending litigations and future claims. The Resolution Plan also addressed the transfer of assets and liabilities, settlement of claims, and the source of funds for payment.

The Resolution Plan was approved by the COC with 100% votes and complied with all requirements of the Insolvency and Bankruptcy Code, 2016. It provided for settlement of claims of various stakeholders, appointment of the Resolution Professional for implementation, and addressed issues leading to insolvency. The plan was found to be in compliance with relevant regulations and not in contravention of any provisions. The Resolution Professional certified the plan's compliance with the law. The Resolution Plan was declared binding on all involved parties, and the Resolution Applicant was granted liberty to seek concessions for plan implementation. The order approved the Resolution Plan, declared its effectiveness, and lifted the moratorium.

The Resolution Plan was subject to existing laws and authorities' requirements, and the Resolution Applicant was directed to obtain necessary approvals within a specified period. The Resolution Professional was instructed to forward all related records to the Insolvency and Bankruptcy Board of India. The application was allowed with specific observations and directions, and urgent copies of the order were to be issued to concerned parties upon compliance.