2018 (11) TMI 251 - AT - Insolvency and Bankruptcy

Corporate insolvency procedure - non implement of the resolution plan with amendments - Main grievance was that the appellant SREI Infrastructure Finance Ltd. has not been treated equally with other Financial Creditors - Held that - As successful resolution applicant Ghanshyam Misra & sons Pvt. Ltd. and the learned counsel appearing on behalf of the Committee of Creditors have no objection if the resolution plan is modified to the extent above. In the circumstances, we modify the resolution plan as approved by the Adjudicating Authority so far it relates to the payment of amount to the appellant SREI Infrastructure Finance Limited who will be entitled the amount already proposed in the resolution plan plus( ) additional differential amount of ₹ 94 Lakhs, as stated in the affidavit, on the same terms & conditions as proposed in the resolution plan . We allow the parties to implement the resolution plan with amendments as shown above and to make payments. So far as IFCI Bank is concerned, they had not raised any objection before the Adjudicating Authority and having voted in the favour of the resolution plan , we are not granting any relief to the Respondent IFCI Bank .

Summary

Issues:
1. Grievance raised against the resolution plan by the appellants.
2. Disparity in treatment of financial creditors.
3. Modification of the resolution plan to include additional payment.
4. Approval of the modified resolution plan.
5. Decision regarding relief to IFCI Bank.

Analysis:
1. The appellants, SREI Infrastructure Finance Ltd. & SREI Equipment Finance Ltd., raised grievances against a resolution plan approved by the Adjudicating Authority. They claimed that they were not treated equally with other financial creditors, leading to a difference in the amount they were entitled to receive.

2. The successful resolution applicant, Ghanshyam Misra & Sons Pvt. Ltd., offered to make an additional payment of INR 94 Lakhs to the appellants to settle the matter and avoid further controversy or litigation. The resolution applicant supported the distribution methodology approved by the majority of the Committee of Creditors and the Adjudicating Authority.

3. The appellants agreed to the proposed modification of the resolution plan, which would include an additional payment of INR 94 Lakhs to them. The successful resolution applicant and the Committee of Creditors also had no objections to this modification, paving the way for the resolution plan to be amended accordingly.

4. Consequently, the Appellate Tribunal modified the resolution plan to include the additional payment of INR 94 Lakhs to SREI Infrastructure Finance Limited, in addition to the amount already proposed in the plan. This modification was made on the same terms and conditions as originally proposed in the resolution plan.

5. Regarding IFCI Bank, as they had not raised any objections and had voted in favor of the resolution plan, no relief was granted to them by the Tribunal. The appeals were disposed of based on the modifications made to the resolution plan, allowing the parties to implement the plan with the approved amendments and make the necessary payments. No costs were awarded in this matter.