9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 1617 - Tri - Insolvency and BankruptcyResolution Plan approval - meeting the requirements as referred to section 30(2) of I&B Code - Held that - Description about the resolution applicant proves that the identification of resolution applicant who can take care of the assets of the corporate debtor is reasonable and justifiable. So the stressed assets of the corporate debtor is going to the hand of a safer resolution applicant. An affidavit swearing that the applicant is not disqualified as per the amended section 29A of the I & B Code though seen not annexed by filing supplementary affidavit it has been annexed. The Resolution Professional also certified that the Resolution Applicant is not ineligible to submit a Resolution Plan under Section 29A of the I & B Code. The mandatory disclosure seen enclosed. Workmen dues and employees dues agreed to be paid within 30 days of the date of approval of the Resolution Plan. No infirmity seems to have brought out upon screening of the Resolution Plan and, therefore, the Resolution Plan submitted being meets all the requirement to be satisfied under Section 30(2) of the I & B Code the Adjudicating Authority has no other alternative other than to approve the Resolution Plan which shall be binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the Resolution Plan. Accordingly, the Resolution Plan is approved upon the following orders - (i) The Resolution Plan of Liberty House Group Pte. Ltd., which is approved by the CoC with 99.94% voting percentage, is hereby approved under provisions of Section 31(1) of the Insolvency and Bankruptcy Code, 2016, which will be binding on the Corporate Debtor, its employees, members, creditors, guarantors and other stakeholders involved in the Resolution Plan. (ii) The revival plan of the company in accordance with the approved Resolution Plan shall come into force with immediate effect. (iii) The moratorium order passed under Section 14 shall cease to have effect. (iv) The Resolution Professional shall forward all records relating to the conduct of the Corporate Insolvency Resolution Process and the Resolution Plan to the Insolvency and Bankruptcy Board of India to be recorded on its database. (v) Before parting with, it appears to me that I have to endorse my appreciation to the work rendered by the Resolution Professional, Mr. Sumit Binani for having a successful resolution process so as to find out a stakeholder having international repute to take over the stressed assets of the corporate debtor/ Adhunik Metaliks Limited.
Issues Involved:
1. Approval of the Resolution Plan under Section 31(1) and Sub-section (5) of Section 60 of the Insolvency and Bankruptcy Code, 2016. 2. Objection by MSTC Limited regarding the non-consideration of its claim as insolvency resolution process costs. 3. Objection by the Workers Union regarding non-payment of wages and increment. Issue-wise Detailed Analysis: 1. Approval of the Resolution Plan: The Resolution Professional (RP) filed an application under Sub-section (6) of Section 30 and Section 31 of the Insolvency and Bankruptcy Code, 2016, for the approval of the Resolution Plan. The RP, Mr. Sumit Binani, was appointed as the Interim Resolution Professional by the Committee of Creditors (CoC) and continued with the Corporate Insolvency Resolution Process (CIRP). The CoC received and considered multiple resolution plans, ultimately approving the plan submitted by Liberty House Group Pte. Ltd. with a vote share of 99.94%. The RP verified that the plan met all the requirements under Section 30(2) of the I&B Code and filed it with the necessary certifications. 2. Objection by MSTC Limited: MSTC Limited, a Public Sector Undertaking, objected to the approval of the Resolution Plan, claiming that it incurred costs amounting to ?343.43 crores for facilitating the procurement of raw materials during the CIRP period, out of which only ?244.12 crores had been paid. MSTC argued that the remaining amount should be considered as insolvency resolution process costs. The RP countered that MSTC's claim was for an operational debt and not for resolution costs, and that the resolution costs had already been cleared. The Tribunal found that MSTC, being a facilitator, did not own the raw materials and that its claim for pre-CIRP dues fell under operational debt. The Tribunal dismissed MSTC's application, stating that the claim was unsustainable and devoid of merit. 3. Objection by the Workers Union: The Workers Union, representing 578 workmen, filed an application under Sub-section (5) of Section 60 of the I&B Code, contending that the workers were not paid wages for May 2018 and that increments agreed upon in the Memorandum of Settlement were not considered. The RP admitted the claim for wages but argued that the arrears could not be disbursed due to insufficient funds and that the resolution applicant would pay the wages within 30 days of the plan's approval. The Tribunal found that the RP's non-consideration of the increment was justified due to the lack of funds and dismissed the Workers Union's application, stating that the relief sought could not be entertained before the approval of the resolution plan. Final Judgment: The Tribunal approved the Resolution Plan submitted by Liberty House Group Pte. Ltd., stating that it met all the requirements under Section 30(2) of the I&B Code. The plan was binding on the corporate debtor, its employees, members, creditors, guarantors, and other stakeholders. The moratorium order ceased to have effect, and the RP was directed to forward all records to the Insolvency and Bankruptcy Board of India. The Tribunal appreciated the RP's efforts in successfully resolving the corporate debtor's stressed assets. Both objections, CA(IB) No. 614/KB/2018 by MSTC and CA(IB) No. 595/KB/2018 by the Workers Union, were dismissed with no order as to costs. Orders: 1. The Resolution Plan of Liberty House Group Pte. Ltd. is approved and binding on all stakeholders. 2. The revival plan of the company shall come into force immediately. 3. The moratorium order under Section 14 shall cease to have effect. 4. The RP shall forward all records to the Insolvency and Bankruptcy Board of India. 5. Appreciation was extended to the RP for the successful resolution process. 6. CA(IB) No. 614/KB/2018 and CA(IB) No. 595/KB/2018 are dismissed with no order as to costs. 7. CP(IB) No. 373/LB/2017 and all related applications are disposed of.
|
