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2021 (11) TMI 180 - Tri - Insolvency and BankruptcyApproval of Resolution Plan - preferential undervalue or extortionate transaction - Section 30(6) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - It is noted that CoC in its 10th meeting held on 22.01.2021 with 100% voting right approved the Resolution Plan submitted by Resolution Applicant. It is also noted that Resolution Applicant is not a related party of the Corporate Debtor. There are no preferential undervalue or extortionate transaction. The total outstanding debt claims by all stakeholders stand at ₹ 1,70,426.58 Lakhs and Resolution Applicant has committed for payment to them at ₹ 7,860.00 Lakhs which amounts to 4.61% of total outstanding debt. The Resolution Plan also contains provisions for its effective implementation and we as Adjudicating Authority are satisfied that the Resolution Plan so approved can be successfully implemented. The monitoring committee and supervisory committee as mentioned in the Resolution Plan shall be formed for effective implementation of the Resolution Plan. The Resolution Plan as proposed by Resolution Applicant and approved by CoC is approved - application allowed.
Issues:
Approval of Resolution Plan under Section 30(6) of IBC, 2016. Analysis: The application was filed by the Resolution Professional for the approval of the Resolution Plan of the Corporate Debtor under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had been admitted into Corporate Insolvency Resolution Process (CIRP) by the Adjudicating Authority. The Committee of Creditors (CoC) was constituted, and various meetings were held to discuss the Resolution Plan. The Resolution Plan submitted by the Resolution Applicant was found to be in compliance with the provisions of IBC, 2016, and relevant rules and regulations. The CoC approved the revised Resolution Plan submitted by the Resolution Applicant with 100% votes in the 10th meeting. The Applicant received valuation reports indicating the Fair Value and Liquidation Value of the Corporate Debtor. The suspended board of directors initially raised objections but later requested the Adjudicating Authority to adjudicate the approval of the Resolution Plan without objections. An affidavit clarifying the eligibility of the Resolution Applicant under Section 29A of IBC, 2016 was submitted. The Resolution Applicant provided performance security as required by the CIRP Regulations, 2016. The Resolution Plan was thoroughly examined by the Adjudicating Authority. It was noted that the Resolution Applicant was not a related party of the Corporate Debtor, and there were no preferential undervalue or extortionate transactions. The Resolution Plan complied with all the necessary provisions of IBC, 2016, and related regulations. The total outstanding debt claims were considered, and the Resolution Plan committed to payment to stakeholders. The Adjudicating Authority was satisfied that the Resolution Plan could be successfully implemented. The Adjudicating Authority approved the Resolution Plan as proposed by the Resolution Applicant and approved by the CoC. Various reliefs and concessions were granted as per the Resolution Plan. The order detailed the extinguishment of liabilities, encumbrances, and claims of stakeholders. It also addressed the management handover, approvals required, and other procedural formalities. The Resolution Plan was deemed effective from the date of the order, and the moratorium ceased to have effect. The Resolution Professional was directed to send copies of the order to participants, forward records to the Insolvency and Bankruptcy Board of India, and ensure compliance with all formalities. Any urgent certified copies were to be issued upon compliance with formalities.
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