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2020 (4) TMI 311 - Tri - Insolvency and BankruptcyApproval of Resolution Plan - Payment of statutory dues - HELD THAT - The CoC having taken decision that the present Resolution Plan is beneficial to the Financial Creditors, Corporate Debtor and all other stakeholders, they have approved the Resolution Plan with a voting share of 70.93% on 30-10-2019 - We have not come across this Resolution Applicant asking any exemption towards the claims after approval of this plan, however, in any event, if any such exemption is mentioned anywhere in the plan that is not acceptable unless and until such relief is in accordance with law. As to action to be taken by the Corporate Debtor mentioned in the Resolution Plan as well as another clause mentioned under caption Step XI - Actions to be taken by the Resolution Applicant - (4) of the Resolution Plan holding the suspended directors viz., Mr. Sivaramakrishnan and Mr. T.K. Santhosh should take the responsibility to get the Power of Attorney registered in favour of both new Builder/Contractor Representatives of homebuyers once the settlement of ₹ 85 lakh is made to Mr. Mukesh Jain (the current Power Agent) , the RP being the representative of the Corporate Debtor, the RP is entitled to execute the documents on behalf of the Corporate Debtor instead of asking the suspended directors who are no more representing the Corporate Debtor. The exemptions if any sought in violation of any law in force, it is hereby clarified that such exemptions shall be construed as not granted. In view of the same, this plan is hereby approved - Application allowed.
Issues:
Approval of Resolution Plan under sections 30 & 31 of the Insolvency & Bankruptcy Code, 2016. Valuation and infusion of funds by Resolution Applicant and homebuyers. Settlement of claims for Financial Creditors. Payment schedule for Financial Creditors. Provision for statutory dues. Performance Guarantee requirement. Approval process by CoC. Exemption requests. Actions to be taken by the Corporate Debtor. Analysis: The judgment pertains to an application by the Resolution Professional (RP) under sections 30 & 31 of the Insolvency & Bankruptcy Code, 2016 for the approval of a Resolution Plan. The Resolution Plan valued at ?25 crore involves an infusion of funds by the Resolution Applicant and homebuyers to ensure flats for homebuyers and settlements for Financial Creditors, including Bank of India, Catholic Syrian Bank, and Dhanalaxmi Bank. The plan outlines the settlement amounts and assets to be provided to each Financial Creditor, with payment schedules specified for different time frames. Regarding Financial Creditors, they are set to receive 60% of the principal amount payable to them, along with provisions for Operational Creditors and workmen. Statutory dues of ?14.55 lakh are to be paid by the promoter-directors, with a modification in the plan directing the Resolution Applicant to pay the same to the respective authorities. The total admitted claim against the Corporate Debtor is ?64,56,36,381. The judgment details the appointment of the RP, efforts to collect documents, constitution of the CoC, and the approval process for the Resolution Plan. It highlights the rejection of other Resolution Applicants due to eligibility criteria, leading to the approval of the present Resolution Plan by the CoC with a voting share of 70.93%. The Resolution Applicant is required to submit a Performance Guarantee before plan implementation. Exemptions requested in the plan are scrutinized, with the judgment emphasizing that any relief sought must comply with the law. Actions to be taken by the Corporate Debtor, including responsibilities of suspended directors, are clarified, with the RP entitled to execute documents on behalf of the Corporate Debtor. Any exemptions sought in violation of the law will not be granted, and the plan is ultimately approved. In conclusion, the judgment allows the application and approves the Resolution Plan, ensuring compliance with legal requirements and outlining the necessary actions for all parties involved.
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