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2020 (12) TMI 193 - Tri - Insolvency and BankruptcyApproval of the Resolution Plan - Section 30(6) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The Resolution Applicant proposes to appoint suitably qualified and experienced persons, key personnel and other officer for operations of the Corporate Debtor in terms of Section 30(2)(c). The Plan also provides for implementation of provision of the Resolution Plan as stated above as per Section 30(2)(d). The Resolution Applicant has given a declaration that the Resolution Plan does not contravene any provisions of the law for the time being in force. The Resolution Plan is in compliance of the Regulation 38 of the Regulations in terms of Section 30(2)(f) a) Payment to Operational Creditor will be made in priority over Financial Creditor (Regulation 38(1)(a)). b) Since the plan has been approved by 100% voting share of the CoC, provision of dissenting financial creditor does not arise. This is in compliance of Regulation 38(1)(b) of the Regulations. c) Declaration by the Resolution Applicant that the Resolution Plan has considered the interest of all the stakeholders of the Corporate Debtor, keeping in view the objectives of the Code (Regulation 38(1A)). d) Declaration by the Resolution Applicant that neither the Resolution Applicant nor any of his related party has either failed or contributed to the failure of the implementation of any other approved Resolution Plan. The instant Resolution Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38(1A) and 39(4) of the Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law. The same needs to be approved. Application allowed.
Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. 2. Compliance with the provisions of the Code and Regulations. 3. Distribution and satisfaction of claims and debts. 4. Management and implementation of the Resolution Plan. 5. Pending applications and their impact on the Resolution Plan. Issue-wise Detailed Analysis: 1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016: The application was filed by the Resolution Professional (RP) seeking approval of the Resolution Plan submitted by Reliance Projects & Property Management Services Limited. The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor commenced on 15.05.2018, and after various procedural steps and appeals, the Committee of Creditors (CoC) approved the Resolution Plan with a 100% voting share on 02.03.2020. 2. Compliance with the provisions of the Code and Regulations: The RP conducted the CIRP in compliance with the Code and the Insolvency and Bankruptcy Board of India (Corporate Insolvency Resolution Process) Regulations, 2016. The Resolution Plan was verified for eligibility under Section 29(A) of the Code, and the RP submitted Form H under Regulation 39(4), confirming compliance. The Tribunal noted that the Resolution Plan met the requirements specified in Section 30(2) of the Code and Regulations 37, 38, 38(1A), and 39(4). 3. Distribution and satisfaction of claims and debts: The Resolution Plan proposed a total payment of INR 3,720 crores for the resolution of the Corporate Debtor. The plan included: - Payment of CIRP costs in full. - Payment to workmen/employees and operational creditors. - Capital reduction and equity infusion. - Payment to financial creditors on a pro-rata basis. The Tribunal highlighted that the plan provided for the full and final satisfaction and discharge of all claims and debts against the Corporate Debtor, ensuring no further liabilities for the Resolution Applicant post-implementation. 4. Management and implementation of the Resolution Plan: The Resolution Plan outlined the management of the Corporate Debtor as a going concern, leveraging the expertise of the Reliance Industries Group. A monitoring committee comprising the RP, nominees of approving financial creditors, and nominees of the Resolution Applicant would oversee the implementation. The plan included provisions for fund infusion, human resource augmentation, and infrastructure upgradation. 5. Pending applications and their impact on the Resolution Plan: The Tribunal acknowledged the pending applications (IA Nos. 1960 of 2019 and 3055 of 2019) challenging certain claims and decisions. However, it determined that the pendency of these applications would not hinder the approval of the Resolution Plan. The distribution of payments to creditors would be subject to the outcomes of these applications. Conclusion: The Tribunal approved the Resolution Plan submitted by Reliance Digital Platform & Project Services Limited, noting its compliance with the Code and Regulations. The plan was deemed fair and equitable to all stakeholders and binding on all parties involved. The approval did not constitute a waiver of any statutory obligations, and the Resolution Applicant was required to obtain necessary approvals from relevant authorities. The moratorium under Section 14 ceased, and the RP and Monitoring Committee were tasked with supervising the implementation of the plan. The RP was directed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI) and send a copy of the order to the CoC and the Resolution Applicant for compliance.
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