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2022 (6) TMI 1326 - Tri - Insolvency and BankruptcySeeking approval of the Resolution Plan - Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The requirements under section 31(1) of the Code are satisfied in the present case. In para 4 of Form H, the Resolution Professional has certified that the Resolution Plan complies with all the provisions of the Insolvency and Bankruptcy Code, 2016 (Code), the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) and does not contravene any of the provisions of the law for the time being in force. It is declared that whatever reliefs and concessions entitled by the Resolution Applicant by virtue of the approval of the Plan, as per the application of I B Code, 2016 and any other applicable Laws are entitled by it - the moratorium order passed by this Adjudicating Authority under Section 14 of the Code on 08.04.2019 in the main C.P. shall cease to have effect. Application allowed.
Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016 (IBC). 2. Compliance with the provisions of Section 30(2) of the IBC. 3. Effective implementation of the Resolution Plan. 4. Granting reliefs and concessions as sought by the Resolution Applicant. Issue-Wise Detailed Analysis: 1. Approval of the Resolution Plan: The application was filed under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016, seeking approval of the Resolution Plan submitted by Starteck Finance Limited for the revival of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor by an order dated 08.04.2019. The Resolution Plan was approved by the Committee of Creditors (CoC) with 98.97% voting in favor. 2. Compliance with Section 30(2) of the IBC: The Resolution Professional (RP) confirmed compliance with Section 30(2) of the IBC, which includes: - Section 30(2)(a): The Resolution Plan provides for the payment of insolvency resolution process costs in priority to other debts. - Section 30(2)(b): Payment to operational creditors is prioritized over financial creditors, ensuring that the amounts payable are in accordance with the Code. - Section 30(2)(c): Management of the Corporate Debtor's affairs post-approval is outlined, with a Monitoring Committee to oversee the process. - Section 30(2)(d): Implementation and supervision of the Resolution Plan are detailed, with the RP and Monitoring Committee ensuring compliance. - Section 30(2)(e): The Resolution Plan does not contravene any provisions of the law. - Section 30(2)(f): The RP certified that the Resolution Plan meets all requirements specified by the Board. 3. Effective Implementation of the Resolution Plan: The Resolution Plan includes provisions for its effective implementation, such as the appointment of the existing RP as the Insolvency Professional and the formation of a Monitoring Committee. The business and operations of the Corporate Debtor will be managed by the Monitoring Committee, ensuring the plan's execution. 4. Granting Reliefs and Concessions: The Resolution Applicant sought various reliefs and concessions, including the withdrawal of legal proceedings against the Corporate Debtor and immunity from penalties for prior non-compliance. The Tribunal stated that while the Resolution Applicant is entitled to reliefs as per the IBC and other applicable laws, any additional reliefs must be pursued through appropriate legal channels. Conclusion: The Tribunal approved the Resolution Plan submitted by Starteck Finance Limited, finding it compliant with the IBC and CIRP Regulations. The plan is binding on all stakeholders, including the Corporate Debtor, its employees, creditors, and government authorities. The moratorium order under Section 14 of the IBC ceased to have effect, and the RP was directed to forward all records related to the CIRP to the Board. The application was disposed of accordingly.
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