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2021 (5) TMI 1058 - SCH - Insolvency and BankruptcyApproval of Resolution Plan - sub-section(1) of Section 31 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The resolution plan was approved by the Committee of Creditors in their commercial wisdom. The resolution plan has been approved by the NCLT in terms of the above directions (save and except for a minor aspect pertaining to the security expenses of West Bengal Industrial Development Corporation, on which there is no cavil or contest on either side). No substantial question of law has been raised by the appellant. The appeal is accordingly dismissed.
Issues Involved:
Approval of Resolution Plan by NCLT under the Insolvency and Bankruptcy Code, 2016. Analysis: The National Company Law Tribunal (NCLT) approved the Resolution Plan of Ramsarup Industries Ltd., which was supported by 74.41% voting share of the Committee of Creditors (CoC). The NCLT's order, dated 4 September 2019, stated that the Resolution Plan shall be binding on various entities involved, including the Corporate Debtor, employees, members, creditors, guarantors, government entities, and other stakeholders. The Resolution Plan was approved under Section 31 of the Insolvency and Bankruptcy Code, 2016, with a specific modification related to the security expenses incurred by the Financial Creditor/West Bengal Industrial Development Corporation Limited (WBIDCL). The Resolution Plan was to come into force from the date of the NCLT's order. The NCLT's order was subsequently affirmed by the National Company Law Appellate Tribunal. The appellant raised no substantial question of law challenging the approval of the Resolution Plan. It was noted that the Resolution Plan had been approved by the CoC based on their commercial wisdom and in accordance with the NCLT's directions. The only minor aspect in question was related to the security expenses of WBIDCL, which did not face any dispute from either side. Consequently, the appeal was dismissed, and all pending applications were disposed of as per the NCLT's order. In conclusion, the judgment upheld the approval of the Resolution Plan by the NCLT, emphasizing its binding nature on the relevant parties as per the provisions of the Insolvency and Bankruptcy Code, 2016. The decision highlighted the importance of CoC's decision-making process and the judicial affirmation of such decisions by the NCLT and the Appellate Tribunal.
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