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2022 (7) TMI 1036 - Tri - Insolvency and BankruptcySeeking approval of the Resolution Plan - section 30(6) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The RP has certified that the Resolution Plan does not contravene any provisions of law for the time being in force. On examination of the Resolution Plan, we also find that the Resolution Plan does not contravene any provisions of law. We also hold that the Resolution Plan is in compliance with the provisions stated in Regulations 38 and 39 of the IBBI (CIRP of the Corporate Person) Regulations, 2016, and the interests of all stakeholders are taken care of. The term of the plan is also stated. Hence, there are no reason to reject this Resolution Plan on any grounds. The Resolution Applicant cannot be saddled with any previous claim against the Corporate Debtor prior to initiation of its CIRP. For the permits, licenses, leases, or any other statutory right vested in the Corporate Debtor shall remain with the Corporate Debtor and for the continuation of such statutory rights, the Resolution Applicant has to approach the concerned statutory authorities under relevant laws. Application allowed.
Issues Involved:
1. Approval of the Resolution Plan under section 30(6) of the Insolvency and Bankruptcy Code, 2016. 2. Compliance with section 30(2) of the IBC, 2016. 3. Reliefs and concessions claimed by the Resolution Applicant. 4. Extinguishment of pre-CIRP liabilities and claims. 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) for the approval of the Resolution Plan submitted by M/s. Agarwal Coal Corporation Private Limited. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 03.02.2021, and the RP made a public announcement calling upon creditors to submit claims. The Committee of Creditors (CoC) was formed with various financial creditors having specified voting shares. Multiple resolution plans were submitted, and after several CoC meetings and extensions, the plan by M/s. Agarwal Coal Corporation Private Limited was approved with 93.27% voting rights. 2. Compliance with section 30(2) of the IBC, 2016: The Tribunal examined the Resolution Plan in light of section 30(2) of the IBC, 2016: - Section 30(2)(a): The plan provided Rs. 47,25,000/- for CIRP costs, meeting the requirement of prioritizing CIRP expenses. - Section 30(2)(b): The plan proposed payments to secured financial creditors (Rs. 42,55,00,000/-), unsecured financial creditors (Rs. 5,00,000/-), and workmen and employees (Rs. 25,64,704/-). Operational creditors were not provided any payment, but this was justified under the Waterfall Mechanism of section 53 of IBC, 2016. The Tribunal noted the Resolution Applicant's statement to pay some amount to operational creditors. - Section 30(2)(c) and (d): The management and control of the Corporate Debtor were to be handled by a Management Committee with the Resolution Applicant's managerial personnel. The plan complied with these provisions. - Regulations 38 and 39 of the IBBI (CIRP of the Corporate Person) Regulations, 2016: The plan did not contravene any laws and took care of all stakeholders' interests. 3. Reliefs and concessions claimed by the Resolution Applicant: The Tribunal referred to the Supreme Court judgment in Ghanashyam Mishra and Sons Private Limited Vs. Edelweiss Asset Reconstruction Company Limited, which emphasized that all claims against the Corporate Debtor prior to CIRP initiation should be extinguished to allow the Resolution Applicant to start on a clean slate. The Tribunal held that all pre-CIRP liabilities and claims, including those from government/statutory authorities, would be extinguished upon approval of the Resolution Plan. The Resolution Applicant was directed to approach relevant authorities for necessary permits, licenses, and statutory rights. 4. Extinguishment of pre-CIRP liabilities and claims: The Tribunal ordered that all liabilities of stakeholders prior to CIRP against the Corporate Debtor would be permanently extinguished after the approval of the Resolution Plan. This included claims from the suspended management, erstwhile directors, shareholders, and any contingent/unconfirmed dues. The Tribunal provided specific directions for procedural formalities and compliance with the Companies Act, 2013, for the reconstitution of the Board of Directors and other necessary approvals. Conclusion: The Tribunal approved the Resolution Plan submitted by M/s. Agarwal Coal Corporation Private Limited, making it effective from the date of the order. The moratorium order dated 03.02.2021 ceased to have effect, and the RP was directed to forward all records to the Insolvency and Bankruptcy Board of India. The application was allowed and disposed of in terms of the above directions.
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