2021 (10) TMI 1185 - Tri - Insolvency and Bankruptcy

Seeking approval of Resolution Plan - mandatory requirements of Section 30(2) of IBC, met or not - HELD THAT - The Resolution Plan should conform to all such requirements which may be specified by the IBBI. A statement to this effect has been made by the RP in the Revised Form H. The resolution plan fulfills all the requirements of Regulation 38 and 39 of the CIRP Regulations. A perusal of Regulation 38 would clearly show that by virtue of mandatory contents of resolution plan as discussed, in relation to Section 30 and Section 31 of the Code, the requirement of Regulation 38 also stands fulfilled. Even the requirement of Regulation 39 has been satisfied, as the RP has submitted that the resolution plan of Resolution applicant, as approved by the Committee of Creditors, to this Tribunal along with the compliance certificate in Revised Form H, as per the requirements of Regulation 39(4) of the CIRP Regulations meets all the requirements of the Code and the CIRP Regulations and that the resolution plan has been duly approved by the Committee of Creditors. The resolution plan as approved by the COC satisfies all the requirements of the Code and Regulations made thereunder - application allowed.

Summary

Issues:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Code.
2. Constitution of Committee of Creditors (CoC) and receipt of claims.
3. Submission and consideration of resolution plans by CoC.
4. Extension of CIRP period and withdrawal of claim by a CoC member.
5. Reconstitution of CoC and approval of a Revised Resolution Plan by the Consortium.
6. Compliance with the requirements of the Insolvency and Bankruptcy Code (IBC) and Regulations.
7. Approval and binding nature of the Resolution Plan.
8. Direction to obtain approval from the Competition Commission of India.
9. Ceasing of moratorium order and transfer of records to Insolvency and Bankruptcy Board of India (IBBI).

Detailed Analysis:
1. The judgment involved the initiation of the CIRP against a corporate debtor by a financial creditor, leading to the appointment of an Interim Resolution Professional and declaration of moratorium.
2. Claims were received from various creditors, leading to the constitution of the CoC comprising financial creditors.
3. The CoC received and deliberated on multiple resolution plans, requesting revisions from prospective resolution applicants.
4. The CIRP period was extended, a CoC member withdrew their claim, and the CoC underwent reconstitution.
5. The CoC approved a Revised Resolution Plan submitted by the Consortium after considering compliance with the IBC and Regulations.
6. Detailed analysis was conducted to ensure compliance with various sections of the Code, including provisions for payment of costs, debts, management post-approval, implementation, and supervision of the resolution plan.
7. The approved Resolution Plan was deemed binding on all stakeholders, subject to obtaining approval from the Competition Commission of India.
8. The moratorium order was lifted, and records were directed to be transferred to the IBBI for database recording.
9. The judgment concluded by disposing of the application related to the Resolution Plan, affirming its approval and outlining necessary steps for compliance and implementation.