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2020 (9) TMI 1081 - Tri - Insolvency and BankruptcyApproval of the Resolution Plan - Section 31 of the Code read with regulation 39 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - HELD THAT - There appears to be no discrimination in the resolution plan in respective class of creditors, as same treatment is provided to similarly situated each class of creditors. So long as the provisions of the Code and the Regulations have been met, it is the commercial wisdom of the requisite majority of the Committee of Creditors which is to negotiate and accept a resolution plan, which may involve differential payment to different classes of creditors - As a sequel to the aforesaid discussion it is seen that clause (b) of sub-section (2) of Section 30 of the Code stands satisfied. All the requirements of Section 30(2) are fulfilled and no provision of the law for the time being in force appears to have been contravened - In respect of provisions of Regulation 39 (4) a copy of performance security as deposited by resolution applicant has been placed on record. It seen that Bank Guarantee of ₹ 2 Crores issued by DCB Bank cover from 29.02.2020 to 28.11.2020 has been submitted by resolution applicant - Resolution Professional has confirmed compliance of Section 38(2) and (3) in the compliance filed alongwith the application. Resolution plan is approved - application allowed.
Issues:
Approval of Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016. Analysis: 1. The Resolution Professional filed an application seeking approval of the Resolution Plan under Section 31 of the Code for the corporate debtor M/s. Unnati Fortune Private Limited. 2. The Corporate Insolvency Resolution Process was initiated against the Corporate Debtor, and the Interim Resolution Professional was appointed. 3. The Interim Resolution Professional made a public announcement for the submission of claims of the creditors. 4. The Committee of Creditors was constituted, and subsequent meetings were held to discuss and approve the Resolution Plan. 5. Prospective Resolution Applicants submitted their plans, and after evaluation, M/s. One City Infrastructure Private Limited was selected as the successful resolution applicant. 6. The Resolution Plan was modified multiple times and finally approved unanimously by the Committee of Creditors. 7. The Resolution Professional confirmed compliance with the Code and Regulations and submitted the Resolution Plan for approval under Section 31. 8. The Resolution Plan prioritized payment of CIRP costs and operational creditors' debts as per the Code's requirements. 9. The Resolution Plan provided for the management and control of the corporate debtor post-approval. 10. Adequate means for supervising the plan's implementation were outlined, satisfying the Code's requirements. 11. The Resolution Applicant's eligibility and compliance with Section 29A of the Code were confirmed. 12. The Resolution Plan fulfilled all requirements of Section 30(2) and did not contravene any provisions of the law. 13. The Resolution Applicant submitted the required performance security as per Regulation 39(4). 14. The Resolution Professional ensured compliance with Section 38(2) and (3) in the application. 15. Clarifications were sought regarding payment to the Custom Department, and the Resolution Applicant provided the necessary undertakings. 16. After thorough review and finding no infirmities, the Tribunal approved the Resolution Plan. 17. The Monitoring Committee was granted liberty to seek further directions for effective plan implementation. 18. Any reliefs sought beyond the Tribunal's jurisdiction were advised to be pursued before relevant authorities. 19. The Resolution Applicant was mandated to obtain necessary approvals within the specified timeline and adhere to all applicable laws. 20. Records related to the CIR Process and Resolution Plan were to be forwarded to IBBI for documentation. 21. The approved Resolution Plan was deemed effective from the date of the order, and related cases were disposed of accordingly.
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