9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 93 - Tri - Insolvency and BankruptcySeeking approval of the Resolution Plan - Section 30(6) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - In K. Sashidhar v. Indian Overseas Bank Others 2019 (2) TMI 1043 - SUPREME COURT the Hon'ble Apex Court held that if the CoC had approved the Resolution Plan by requisite percent of voting share, then as per section 30(6) of the Code, it is imperative for the Resolution Professional to submit the same to the Adjudicating Authority (NCLT). On receipt of such a proposal, the Adjudicating Authority is required to satisfy itself that the Resolution Plan as approved by CoC meets the requirements specified in Section 30(2). The Hon'ble Court observed that the role of the NCLT is 'no more and no less'. The Hon'ble Court further held that the discretion of the Adjudicating Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan as approved by the requisite percent of voting share of financial creditors. 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 Resolution Applicant is eligible under section 240A of the Code and satisfies the relevant legal requirements. The Plan needs to be approved as provided under Section 31 of the Code. 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 requirements of Section 30(2) of the Code. 3. Compliance with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 4. Reliefs and concessions sought by the Successful Resolution Applicant (SRA). 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 the erstwhile Director of the Corporate Debtor, Mr. Gururaj S R. The Corporate Insolvency Resolution Process (CIRP) was initiated on 16.08.2017, and the Committee of Creditors (CoC) approved the Resolution Plan with a 97.98% voting share. 2. Compliance with the requirements of Section 30(2) of the Code: The Resolution Plan met the requirements of Section 30(2) of the Code as follows: - Section 30(2)(a): The Plan provided for the priority payment of CIRP costs in full. - Section 30(2)(b): It provided for the payment of debts to operational creditors and dissenting financial creditors. - Section 30(2)(c): It detailed the management of the Corporate Debtor’s affairs post-approval. - Section 30(2)(d): It included provisions for the implementation and supervision of the Resolution Plan. - Section 30(2)(e): The Plan did not contravene any provisions of the law for the time being in force. 3. Compliance with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016: The Resolution Plan complied with Regulation 38 of the Regulations: - Regulation 38(1)(a): It provided for payment to Operational Creditors in priority over Financial Creditors. - Regulation 38(1)(b): It provided for payment to dissenting Financial Creditors in priority over assenting Financial Creditors. - Regulation 38(1A): It considered the interest of all stakeholders. - Regulation 38(1B): It declared that neither the Resolution Applicant nor any related parties failed in implementing any other approved Resolution Plan. - Regulation 38(2): It included terms and implementation schedules, management, and control of the Corporate Debtor. - Regulation 38(3): It addressed the cause of default, feasibility, and viability. 4. Reliefs and concessions sought by the Successful Resolution Applicant (SRA): The SRA sought various reliefs and concessions, including: - Electricity and Water Supply: Reconnection of electricity and water supply with certain waivers and exemptions from the Goa Electricity Board (GEB) and the Goa Public Works Department (PWD). - Employee State Insurance and Provident Fund: Waiver of penalties, damages, and interest, and acceptance of principal dues without additional charges. - Tax Exemptions: Exemptions from penal provisions of various tax laws and reliefs from the Central Board of Direct Taxes. - Transfer of Lease Hold Rights: Transfer of leasehold rights in respect of land from the Goa Industrial Development Corporation (GIDC). Conclusion: The Tribunal approved the Resolution Plan submitted by Mr. Gururaj S. R., as it met all the legal requirements and was in compliance with the Code and the Regulations. The Plan is binding on all stakeholders, and the moratorium under Section 14 of the Code ceased to have effect. The Applicant and the Monitoring Committee were directed to supervise the implementation of the Resolution Plan and report its status to the Tribunal periodically. The reliefs and concessions sought by the SRA were to be applied for and considered by the relevant authorities in accordance with the law.
|
