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2022 (10) TMI 288 - Tri - Insolvency and BankruptcySeeking approval of the Resolution Plan submitted by Consortium - section 30(6) of the Insolvency and Bankruptcy Code, 2016 (Code) read with Regulation 39 (4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - HELD THAT - All the requirements of Section 30 (2) are fulfilled and no provision of the law for the time being in force appears to have been contravened. In view of the provision of the Code Letter of Intent dated 28.03.2022, the Applicant called upon the Resolution Applicant to furnish an unconditional and irrevocable Performance Guarantee/Direct Deposit of Rs. 1,78,05,000 - Section 30(6) of the Code enjoins the Resolution Professional to submit the Resolution Plan as approved by the CoC to the Adjudicating Authority. Section 31 of the Code deals with the approval of the Resolution Plan by the Authority, if it is satisfied that the Resolution Plan as approved by the CoC under section 30(4) meets the requirements provided under section 30(2) of the Code. Thus, it is the duty of the Adjudicating Authority to satisfy itself that the Resolution Plan as approved by the CoC meets all the requirements. The RP has complied with the requirement of the Code in terms of Section 30(2)(a) to 30(2)(f) and Regulations 38(1), 38(1)(a), 38(2)(a),38(2)(b), 38(2)(c) 38(3) of the Regulations. In COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA OTHERS 2019 (11) TMI 731 - SUPREME COURT the Hon ble Apex Court clearly laid down that the Adjudicating Authority would not have power to modify the Resolution Plan which the CoC in their commercial wisdom have approved. The instant Resolution Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38(1A) and 39 (4) of the Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law - Application allowed.
Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. 2. Compliance with the Insolvency and Bankruptcy Code, 2016, and related regulations. 3. Evaluation and voting process by the Committee of Creditors (CoC). 4. Financial details and distribution of funds as per the Resolution Plan. 5. Legal observations and adherence to statutory requirements. Issue-wise Detailed Analysis: 1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016: The Resolution Professional (RP) submitted the Resolution Plan for Himadri Foods Limited under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval from the National Company Law Tribunal (NCLT), Mumbai Bench. The plan was approved by the requisite majority of the Committee of Creditors (CoC). 2. Compliance with the Insolvency and Bankruptcy Code, 2016, and related regulations: The RP ensured that the Resolution Plan met the requirements of the Code and was in accordance with Regulation 39(4) of the CIRP Regulations. The plan was compliant with Section 30(2) of the Code, covering payment of insolvency resolution process costs, debts of operational creditors, management of the corporate debtor's affairs post-approval, and implementation and supervision of the plan. The RP also provided a compliance certificate in "FORM H." 3. Evaluation and voting process by the Committee of Creditors (CoC): The CoC held multiple meetings to deliberate and negotiate the Resolution Plans. The evaluation matrix was used to score the plans, and e-bidding was conducted among the top two applicants. The plan receiving the highest marks was considered the successful Resolution Plan. The final plan by the Viraki Consortium was approved with 87.15% votes in favor. 4. Financial details and distribution of funds as per the Resolution Plan: The Resolution Plan proposed a financial outlay of Rs. 35.61 Crores. The distribution included: - Payment to all stakeholders within T+90 days: Rs. 35.61 Crores. - Operational Creditors (excluding employees and workmen) and statutory dues: Rs. 0.20 Crores within T+60 days. - CIRP costs: Rs. 1.71 Crores within T+60 days. - Employees and workmen: Rs. 0.10 Crores within T+60 days. - Financial creditors (secured): Rs. 33.30 Crores within T+90 days. - Financial creditors (unsecured): Rs. 0.25 Crores within T+60 days. - Related party dues and equity shareholders: NIL. The Resolution Applicant proposed to infuse Rs. 7 Crores as working capital and provided a performance Bank Guarantee of Rs. 1.78 Crores. 5. Legal observations and adherence to statutory requirements: The NCLT observed that the Resolution Plan complied with all provisions of the Code and did not contravene any laws. The plan provided for the payment of CIRP costs, operational creditors' debts, and management of the corporate debtor's affairs post-approval. The RP certified that the plan was not in contravention of any laws. The liquidation value of the corporate debtor's assets was Rs. 2472.82 Lakhs, and the plan proposed an amount higher than this value, justifying its approval. Order: The NCLT approved the Resolution Plan submitted by the Viraki Consortium, making it binding on all stakeholders. The moratorium under Section 14 of the Code ceased, and a 3-member Monitoring Committee was constituted to oversee the implementation of the plan. The RP was instructed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI) and send a certified copy of the order to the CoC and the Resolution Applicant for compliance.
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