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2019 (4) TMI 2044 - Tri - Insolvency and BankruptcySanction of the Resolution Plan - Sections 30(6) and Section 31 of the Insolvency and Bankruptcy Code 2016 read with regulation 39(4) of the IBBI (Insolvency Regulation Process for Corporate Persons) Regulation 2016 - HELD THAT - The Resolution Plan has been filed by the RP and is duly annexed with form H and an affidavit. It is submitted that after exclusion of certain days as admissible on account of absence of any RP or pendency before the adjudicating authority the resolution plan has been filed within 270 days of its initiation. The RP has certified that the Resolution Plan has been examined and found to be strictly in compliance of the mandatory provisions of Section 30(2) of the Code. On-going through the plan and in terms of Section 31 of the Code this Bench is satisfied that the resolution plan as unanimously approved by the Committee of Creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30. In view of the same there is no legal impediment in confirming the same by this Adjudicating Authority - The resolution plan is approved which shall be binding on the corporate debtor and its employees members creditors guarantors and other stakeholders involved in the resolution plan - moratorium imposed upon the assets of the Corporate Debtor shall cease to have any effect in terms of Section 31(3)(a) of the Code. Application allowed.
Issues:
1. Sanction of Resolution Plan under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code 2016. Analysis: The judgment revolves around an application filed for the sanction of a Resolution Plan accepted by the Committee of Creditors under the Insolvency and Bankruptcy Code. The case involves the initiation of Corporate Insolvency Resolution Process for a specific Corporate Debtor, with the appointment of an Interim Resolution Professional and subsequent approval of a Resolution Professional. The Resolution Plan proposed by the Resolution Applicant, a public limited company, aimed at reviving the operations of the Corporate Debtor engaged in electronic/IT applications. The plan included infusion of working capital, payment of past dues, and acquisition of the Corporate Debtor's equity. The liabilities of the Corporate Debtor, including financial, statutory, and operational claims, were meticulously verified and accounted for in the Resolution Plan. The Resolution Plan detailed the disbursement of funds to various stakeholders, such as Secured Financial Creditors, Workmen, Employees, Unsecured Financial Creditors, Operational Creditors, and Shareholders. The plan ensured full and final settlement of claims based on the stakeholders' classification and approval of the plan. Specific payment timelines were outlined for different categories of creditors, with provisions for immediate payments and settlement of statutory dues within specified periods post the effective date of the plan. The Resolution Applicant committed to infusing additional capital and acquiring the existing equity shares of the Corporate Debtor to facilitate the turnaround of the business. The Tribunal examined the Resolution Plan in accordance with the provisions of the Insolvency and Bankruptcy Code, ensuring compliance with mandatory requirements under Section 30(2) and the unanimous approval by the Committee of Creditors. Upon satisfaction with the plan's adherence to legal provisions, the Tribunal endorsed and approved the Resolution Plan, declaring it binding on the Corporate Debtor and all relevant stakeholders involved. The judgment also addressed the cessation of the moratorium on the Corporate Debtor's assets post payment obligations and transfer of share capital to the Resolution Applicant, enabling the latter to assume complete management through its Board of Directors. Overall, the judgment signifies the culmination of the Corporate Insolvency Resolution Process with the approval of a comprehensive Resolution Plan aimed at restructuring the Corporate Debtor's operations and settling the outstanding liabilities in a structured manner compliant with the statutory framework of the Insolvency and Bankruptcy Code 2016.
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