2021 (6) TMI 188 - Tri - Insolvency and Bankruptcy

Approval of Resolution Plan - section 30(6) of the IB Code, 2016, R/w regulation 39(4) of the IBBI (Insolvency Resolution for Corporate Persons) Regulations, 2016 - HELD THAT - Section 30(6) of the Code enjoins the resolution professional to submit the resolution plan as approved by the committee of creditors to the Adjudicating Authority. Section 31 of the Code deals with the approval of the resolution plan by the Adjudicating Authority, if It is satisfied that the resolution plan as approved by the committee of creditors under section 39(4) meets the requirements as referred to in section 30(2) - before approving the Resolution plan, it is the duty of the Adjudicating Authority that it should satisfy itself that the Resolution plan as approved by the COC meets the requirements as referred to in sub-section (2) of Section 30. In terms of Regulation 27 of CIRP Regulations, Liquidation value was ascertained through two registered valuers, and the Resolution Plan offers more than the average liquidation value - The RP has complied with the code in terms of Section 30(2)(a) to 30(2)(f) and Regulations 38(1), 38(1)(a), 38(2)(a), 38(2)(b), 38(2)(e) 38(3) of CIRP regulations. The 'Resolution Plan' filed with the Application meets the requirements of Section 30(2) of the I B Code, 2016 and Regulations 37, 38, 38(1 A) and 39(4) of TBBI (CMP) Regulations, 2016. The 'Resolution Plan is also not in contravention of any of the provisions of Section 29A Hence, this Adjudicating Authority is satisfied that the Resolution Plan is in accordance with Law - the resolution plan is approved - moratorium shall cease to have effect.

Issues Involved:
1. Approval of the resolution plan under Section 31(1) of the Insolvency and Bankruptcy Code (IBC), 2016.
2. Continuation of the Resolution Professional's role pending resolution plan approval.
3. Implementation of the resolution plan.
4. Appointment of Monitoring Agent and Monitoring Committee.
5. Grant of concessions, reliefs, and dispensation in the resolution plan.
6. Stakeholder cooperation for the resolution plan implementation.

Issue-wise Detailed Analysis:

1. Approval of the resolution plan under Section 31(1) of the Insolvency and Bankruptcy Code (IBC), 2016:
The Resolution Professional (RP) filed an application under Section 30(6) of the IBC, 2016, seeking approval of the resolution plan submitted by the Resolution Applicants. The plan was approved by the Committee of Creditors (CoC) with a 91.1% voting share. The Tribunal evaluated the plan's compliance with Section 30(2) of the IBC, ensuring it provided for the payment of insolvency resolution process costs, repayment of operational creditors' debts, management of the Corporate Debtor's affairs, implementation and supervision of the plan, and conformity with existing laws. The Tribunal found the plan compliant and approved it, making it binding on all stakeholders.

2. Continuation of the Resolution Professional's role pending resolution plan approval:
The RP was directed to continue his role until the resolution plan's approval, with all powers, duties, and protections available under the IBC and regulations. This ensured the Corporate Debtor's operations remained uninterrupted during the resolution process.

3. Implementation of the resolution plan:
The Tribunal ordered the Resolution Applicants to implement the resolution plan as set out, ensuring the Corporate Debtor's continuity as a going concern. The RP was tasked with supervising the plan's implementation and reporting the status to the Tribunal periodically.

4. Appointment of Monitoring Agent and Monitoring Committee:
The Tribunal approved the appointment of a Monitoring Agent (MA) and Monitoring Committee (MC) to oversee the Corporate Debtor's operations until the Resolution Applicants took control. The MC was granted protections, including a moratorium against suits, legal proceedings, and liabilities for actions taken in good faith and compliance with the IBC and regulations.

5. Grant of concessions, reliefs, and dispensation in the resolution plan:
The Tribunal considered the request for concessions, reliefs, and dispensation sought in the resolution plan. It clarified that any statutory obligations or liabilities arising from the approved plan must be dealt with by the appropriate authorities, and any waiver sought would require approval from the concerned authorities.

6. Stakeholder cooperation for the resolution plan implementation:
The Tribunal directed all stakeholders to cooperate with the Resolution Applicants, MA, and MC to ensure the Corporate Debtor remained a going concern and the resolution plan was implemented as approved.

Conclusion:
The Tribunal approved the resolution plan, making it binding on all stakeholders, including the Corporate Debtor, its employees, members, creditors, and governmental authorities. The RP was directed to supervise the plan's implementation and report to the Tribunal. The moratorium under Section 14 of the IBC ceased upon the order's passing, and the RP was instructed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI). The application was disposed of accordingly.

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