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2020 (6) TMI 687 - Tri - Insolvency and BankruptcyApproval of Resolution Plan - section 30 (2) of the IBC read with Regulation 38 of the CIRP Regulations - HELD THAT - The approved resolution plan is for the amount of ₹ 123.1 crore, payable to the secured financial creditors in compliance with the code within 30 days on which the resolution plan is approved by this adjudicating Authority which will be the date on which the corrected order is passed and the CIRP cost will be made out of the cash and bank balance of the corporate Debtor in priority to payment of other debts and against the total verified amount of ₹ 123.1 crore, the approved plan provides for the payment of entire amount upfront towards settlement of claims of all secured financial creditors and nothing towards the payment of unsecured related party financial creditors against the verified amount of 7.57 crore The RP as required under regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 certified that the contents of the resolution plan meets with the requirements of the IBC and the regulations thereto and that the resolution plan has been approved by the CoC in the manner prescribed under the IBC - This bench directs the RP to act as the Monitoring Agency and thus appointed RP as Monitoring Agency to monitor and supervise the implementation of the Resolution plan and the remuneration of the monitoring agency shall be ₹ 1,50,000/- plus taxes and out of pocket expenses at actual. The Resolution Applicant is allowed to remove and/or substitute the Monitoring Agency with prior approval of this Adjudicating Authority if the Monitoring Agency is unable to satisfactorily perform its responsibilities or breaches terms of its appointment.
Issues Involved:
1. Modification/Correction of the Previous Order 2. Approval of the Resolution Plan under IBC 3. Rejection and Subsequent Recognition of Exim Bank as a Financial Creditor 4. Reconstitution of the Committee of Creditors (CoC) 5. Evaluation and Approval of Revised Resolution Plans 6. Compliance with IBC and CIRP Regulations Issue-wise Detailed Analysis: 1. Modification/Correction of the Previous Order: The present application (CA No. 55/2020) was filed by the applicant to modify/correct the order dated 17-1-2020. The tribunal acknowledged certain inadvertent errors in the previous order and issued a corrected order to replace the earlier one. 2. Approval of the Resolution Plan under IBC: The application (CA No. 188/2019) was filed under sections 30(6) and 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), along with Regulation 39(4) of the CIRP Regulations, seeking approval of the resolution plan submitted by "Atyant Capital India Fund-I". The resolution plan was approved by the Committee of Creditors (CoC) with a 100% voting share, meeting the requirements of section 30(4) of the IBC. 3. Rejection and Subsequent Recognition of Exim Bank as a Financial Creditor: During the Corporate Insolvency Resolution Process (CIRP), the erstwhile Resolution Professional rejected Exim Bank's claim as a financial creditor. Exim Bank challenged this decision, resulting in an order dated 27 November 2017, upholding the rejection. However, this decision was overturned by the Hon'ble NCLAT on 14 August 2018, recognizing Exim Bank as a financial creditor and directing the reconstitution of the CoC. 4. Reconstitution of the Committee of Creditors (CoC): Following the NCLAT's judgment, the CoC was reconstituted to include Exim Bank. The tribunal directed Exim Bank to call for a CoC meeting and appoint a new resolution professional. Subsequently, the applicant was appointed as the new Resolution Professional, confirmed by the tribunal on 8 March 2019. 5. Evaluation and Approval of Revised Resolution Plans: The CoC evaluated the revised resolution plans submitted by Atyant Capital India Fund-I and Hindustan Oil Exploration Co. Limited (HOEC). After negotiations and an outbidding process, Atyant Capital India Fund-I was declared the highest evaluated resolution applicant. The final resolution plan, including an improved financial offer of ?123.1 crore, was approved by the CoC through electronic voting. 6. Compliance with IBC and CIRP Regulations: The Resolution Professional certified that the improved resolution plan met all requirements under the IBC and CIRP Regulations. The plan provided for the payment of insolvency resolution process costs, repayment of operational creditors' debts, management of the corporate debtor's affairs, and implementation and supervision of the resolution plan. The tribunal confirmed that the resolution plan did not contravene any provisions of the law and complied with sections 29A and 30 of the IBC. Conclusion: The tribunal approved the resolution plan submitted by Atyant Capital India Fund-I, binding it on all stakeholders involved. The moratorium order ceased to have effect, and the Resolution Professional was directed to forward all records to the IBBI. The tribunal disposed of CA 55/2020 and CA 188/2019, making the resolution plan effective from the date of the modified order.
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