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2021 (11) TMI 251 - Tri - Insolvency and BankruptcySeeking approval of Resolution Plan - Section 30(6) r.w. Section 31 of Insolvency and Bankruptcy Code, 2016 - HELD THAT - The resolution plan complies with all the requirements of Section 30(2) of IBC, 2016. The Resolution Plan complies with all the applicable provisions. The total outstanding admitted claims of all stakeholders stand at ₹ 617,10,92,265/- and Resolution Applicant has committed payment to them at ₹ 110,88,99,779/- which amounts to 17.13% 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 scheme is allowed to be approved - application allowed.
Issues:
1. Approval of Resolution Plan under Insolvency and Bankruptcy Code, 2016. 2. Consideration of Resolution Plan by Committee of Creditors. 3. Appointment of Transaction Auditor and valuation of assets. 4. Compliance with Section 29A of IBC, 2016. 5. Relief and concessions granted under the Resolution Plan. Analysis: 1. The application was filed for the approval of the Resolution Plan under Section 30(6) r.w. Section 31 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) and the Resolution Professional (RP) followed all procedures as per the IBC, 2016 and Regulations. The COC approved the Resolution Plan submitted by the prospective Resolution Applicant after modifications with 100% voting share. 2. The COC initially rejected the Resolution Plan on technical grounds, leading to an application before the Adjudicating Authority. The Authority directed the RP/COC to reconsider the plan, resulting in the approval of the modified plan in a subsequent meeting. The Resolution Plan was found to comply with all provisions of Section 30 of IBC, 2016 and relevant regulations, with total outstanding claims amounting to ?617,10,92,265 and the Resolution Applicant committing to pay ?110,88,99,779. 3. The Resolution Professional faced challenges in appointing a Transaction Auditor due to unavailability of necessary documents held by the liquidator of the holding company of the Corporate Debtor. Valuation of assets was conducted under the direction of the High Court of Bombay due to obstruction by the holding company's liquidator, with Fair Value and Liquidation Value determined. 4. The Resolution Applicant clarified their eligibility under Section 29A of IBC, 2016 through an affidavit and complied with Regulation 39(4) of IBBI Regulations. The Resolution Plan was thoroughly reviewed and found to meet all requirements, including the formation of monitoring and supervisory committees for effective implementation. 5. Relief and concessions were granted as per the Resolution Plan, extinguishing liabilities of stakeholders, encumbrances on assets, and claims of suspended management, directors, and shareholders. Various directives were issued regarding procedural formalities, management handover, necessary approvals, restructuring of capital, and treatment of existing share capital. Avoidable transactions were to be pursued for recovery and distribution among stakeholders. This judgment allowed the application, disposed of the matter, and directed the effective implementation of the approved Resolution Plan, cessation of moratorium, communication of the order to relevant parties, and transfer of records to the Insolvency and Bankruptcy Board of India.
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