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2022 (8) TMI 763 - Tri - Insolvency and BankruptcySeeking approval of the Resolution Plan - Section 30, 31 and other applicable provisions of the Insolvency Bankruptcy Code, 2016 (hereinafter referred to as Code) read with Regulation 39 of IBBI (Insolvency Resolution Process for Corporate Persons), 2016 - HELD THAT - It is noted that all requirements provided under Section 30(2) of IBC, 2016 and Regulation 36 to 39 of CIRP Regulations, 2016 have been complied with. It is also found that the Resolution Plan addresses the key challenges and trends in industries, implementation schedule and monitoring of the resolution plan and also contains measures to run the Corporate Debtor in future It is noted from records of the matter that application bearing IA 613 of 2021 filed by the resolution professional under Section 43 66 read with Section 25(2)(J) and any other applicable provision of the Insolvency and Bankruptcy Code, 2016 for seeking appropriate directions for avoidance of certain transactions entered by the corporate debtor and consequential directions, are pending before this Adjudicating Authority listed on 28.07.2022. If any amount is realized on disposal of the above pending application, the same shall be distributed among the creditors as per provisions of section 53 of the Code. The Resolution Plan is approved - Application allowed.
Issues Involved:
1. Approval of the Resolution Plan under Section 30 and 31 of the Insolvency & Bankruptcy Code, 2016. 2. Compliance with the provisions of the Insolvency & Bankruptcy Code, 2016 and CIRP Regulations. 3. Voting and approval process by the Committee of Creditors (CoC). 4. Financial details and distribution to stakeholders. 5. Compliance with Section 29A of the Insolvency & Bankruptcy Code, 2016. 6. Reliefs and concessions sought by the Resolution Applicant. 7. Handling of pending applications and avoidance transactions. Detailed Analysis: 1. Approval of the Resolution Plan: The application was filed by the Resolution Professional (RP) for the approval of the Resolution Plan under Section 30, 31, and other applicable provisions of the Insolvency & Bankruptcy Code, 2016. The Corporate Debtor, M/s Mataji Dyeing Mills Pvt. Ltd., was admitted into CIRP on 07.10.2020. The resolution plan submitted by Padam Shree Fabric was approved unanimously by the CoC with 100% voting. 2. Compliance with the Provisions of the Insolvency & Bankruptcy Code and CIRP Regulations: The RP ensured that the resolution plan complied with Section 30(2) of the Insolvency & Bankruptcy Code, 2016, and Regulation 38(3A) of the CIRP Regulations. The resolution plan was in compliance with all the requirements of Section 30(2) and Regulations 36 to 39 of the CIRP Regulations, 2016. 3. Voting and Approval Process by the Committee of Creditors (CoC): The CoC initially comprised Punjab National Bank and Hero Fincorp Ltd. Later, Bajaj Finance Ltd. was added after verification of claims. The CoC discussed and advised revisions to the resolution plans submitted by prospective applicants. The final resolution plan by Padam Shree Fabric was approved unanimously in the 9th CoC meeting. 4. Financial Details and Distribution to Stakeholders: The resolution plan provided for payments to various stakeholders as follows: - Secured Financial Creditors: 64% of the claimed amount. - Unsecured Financial Creditors: 20% of the claimed amount. - Operational Creditors: 5% of the claimed amount for services/work. The total amount committed to stakeholders was Rs. 6,19,50,171/-, which is higher than the liquidation value. 5. Compliance with Section 29A of the Insolvency & Bankruptcy Code, 2016: The eligibility of the resolution applicant under Section 29A was confirmed, and the necessary certificates and undertakings were filed. 6. Reliefs and Concessions Sought by the Resolution Applicant: The Tribunal granted several reliefs and concessions, including the extinguishment of liabilities post-payment to creditors and the extinguishment of all claims and encumbrances on the assets of the Corporate Debtor. The resolution applicant was directed to approach relevant authorities for other reliefs and concessions, including those related to government approvals and stamp duty. 7. Handling of Pending Applications and Avoidance Transactions: The Tribunal noted that an application under Section 43 & 66 for avoidance of certain transactions was pending. Any amount realized from this application would be distributed among creditors as per Section 53 of the Code. Judgment: The Tribunal approved the resolution plan with the following orders: - The resolution plan becomes effective from the date of the order. - The moratorium order dated 07.10.2020 ceases to have effect. - The resolution plan is binding on all stakeholders. - A monitoring committee is to be constituted for the implementation of the resolution plan. - The RP is released from her duties and must forward all records to the Insolvency and Bankruptcy Board of India (IBBI). The application IA 455 of 2021 was allowed, and the RP was directed to forward records to IBBI as per Section 31(3) of the Code.
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