2019 (7) TMI 1984 - Tri - Insolvency and Bankruptcy

Implementation of Resolution Plan - revival of Corporate Debtor - incentives granted to the Corporate Debtor under the Package Schemes of Incentives, 2007 - HELD THAT - It is noted that major value of the Corporate Debtor lies in the licenses and incentives granted to it by various Government Authorities under incentive schemes or otherwise. The purpose of the Insolvency and Bankruptcy Code, 2016 is a revival of the Corporate Debtor and maximisation of value of assets of the Corporate Debtor. If the reliefs sought in the successful resolution plan are not granted, then the plan would be rendered unviable that would ultimately result in the liquidation of the Corporate Debtor. The information provided by the Resolution Applicant satisfies about its capability to implement the Resolution Plan and the information sought in paragraph 76 and 78 of our order dated 03.07.2019 is held as duly provided by the Resolution Applicant vide its Additional Affidavit - the Successful Resolution Applicant directed to file its acceptance report accepting the modification in the Resolution Plan made by this Tribunal by 12.07.2019. The Resolution Plan submitted by the Resolution Professional of the Corporate Debtor for approval of this Tribunal under section 31 of the Insolvency and Bankruptcy Code, 2016 is approved.

Summary

Issues:
1. Modification and clarification sought in the order dated 03.07.2019 in MA 689/2017 in CP 66/2017.
2. Essential conditions for successful implementation of the Resolution Plan.
3. Approval required from Directorate of Geology and Mining, Government of Maharashtra for revival of Corporate Debtor.
4. Maximization of value of assets of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016.
5. Clarifications and modifications in the order dated 03.07.2019.

Issue 1: Modification and clarification sought in the order dated 03.07.2019:
The applicant filed an application seeking modifications and clarifications in the order dated 03.07.2019. The applicant emphasized that conditions in the Successful Resolution Plan are crucial for its implementation but clarified that it was not seeking directions for concessions or reinstatements. The Tribunal noted the importance of these conditions for the revival of the Corporate Debtor and the maximization of its asset value as per the Insolvency and Bankruptcy Code, 2016.

Issue 2: Essential conditions for successful implementation of the Resolution Plan:
The Resolution Applicant highlighted the necessity of approvals from the Directorate of Geology and Mining, Government of Maharashtra, without imposing onerous conditions, for reinstatement of mining leases and related licenses crucial for the Corporate Debtor's economic revival. The Tribunal acknowledged the significance of these approvals for the viability of the Resolution Plan and the avoidance of liquidation, emphasizing compliance with applicable laws and directions of relevant authorities.

Issue 3: Approval required from Directorate of Geology and Mining, Government of Maharashtra for revival of Corporate Debtor:
The Tribunal clarified and modified its order to address the Resolution Applicant's requests. The modifications included clarifications on the approvals required for mining leases, the management structure of the Corporate Debtor, conditions related to the Resolution Plan, extinguishment of claims, and the source of funds for plan implementation. The Resolution Applicant's financial capabilities and commitment to implementing the plan were deemed satisfactory, leading to the approval of the Resolution Plan.

Issue 4: Maximization of value of assets of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016:
The Tribunal emphasized the importance of maximizing the value of the Corporate Debtor's assets under the Insolvency and Bankruptcy Code, 2016. It highlighted that the viability of the Resolution Plan depended on the approvals and reliefs sought, stressing compliance with relevant laws and authorities to ensure successful implementation and avoid liquidation.

Issue 5: Clarifications and modifications in the order dated 03.07.2019:
The Tribunal granted the requested modifications and clarifications in the order dated 03.07.2019, addressing key concerns raised by the Resolution Applicant. The modifications included adjustments to paragraphs related to approvals, management control, conditions of the Resolution Plan, extinguishment of claims, and legal proceedings. The Resolution Plan was ultimately approved, subject to the Resolution Applicant's compliance with the specified conditions and timelines.

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