2021 (9) TMI 1378 - AT - Insolvency and Bankruptcy

Modification of Resolution Plan - HELD THAT - The Resolution Professional who is present, is directed to convene a meeting of Committee of Creditors within four weeks to consider the modified Resolution Plan. Before the meeting, the Home Buyers may nominate not more than 10 persons who will participate in the meeting and represent them. The names of such nominees be communicated to RP through their counsels. The promoters and the authorized person of Edelweiss Asset Reconstruction Company Ltd. (Financer) will also participate in the meeting, so that they can explain the elements of the modified Resolution Plan to the homebuyers about how they will implement the modified Resolution Plan. Let the matter be fixed for hearing on 15th November, 2021.

Summary

Issues Involved:
1. Consideration of a modified Resolution Plan by the Committee of Creditors.
2. Participation of Home Buyers in the meeting.
3. Instructions for the Resolution Professional regarding the meeting.

Analysis:

1. Consideration of a modified Resolution Plan by the Committee of Creditors:
The judgment involves a direction for the Resolution Professional to convene a meeting of the Committee of Creditors within four weeks to discuss and provide suggestions on a modified Resolution Plan. The suggestion for this action came during the course of arguments, and both the Learned Counsel for the Respondents/Home Buyers and the Counsel for the Promoters (Appellant) agreed to this proposal. The Resolution Professional is tasked with ensuring the smooth conduct of the meeting and is required to send a seven days' notice to all participants, including Home Buyers and representatives from the Promoters and the Financer. The judgment sets a deadline for the Resolution Professional to file the minutes of the meeting before the next date of hearing, indicating a structured and time-bound approach to the consideration of the modified Resolution Plan.

2. Participation of Home Buyers in the meeting:
The judgment specifies that before the meeting of the Committee of Creditors, Home Buyers are allowed to nominate up to 10 persons to participate and represent them in the meeting. The names of these nominees are to be communicated to the Resolution Professional through their counsels. This provision ensures the active involvement of Home Buyers in the decision-making process regarding the modified Resolution Plan. Additionally, the judgment mandates the presence of the promoters and the authorized person of the Financer in the meeting to explain the elements of the modified Resolution Plan to the Home Buyers and clarify how they intend to implement the plan. This requirement aims to enhance transparency and communication among all stakeholders involved in the resolution process.

3. Instructions for the Resolution Professional regarding the meeting:
The judgment provides detailed instructions to the Resolution Professional regarding the organization of the meeting. It emphasizes the importance of sending a formal notice to all participants, specifying the venue, date, and time of the meeting. Furthermore, the judgment highlights the need for cooperation from the promoters to ensure the successful conduct of the meeting. By setting a specific date for the next hearing, the judgment establishes a timeline for the Resolution Professional to follow up on the outcomes of the meeting and present the minutes for further review. Overall, the judgment outlines a procedural framework to facilitate the consideration and evaluation of the modified Resolution Plan by all relevant parties involved in the insolvency resolution process.