2020 (9) TMI 1312 - Tri - Insolvency and Bankruptcy

Approval of resolution plan for revival of the corporate Debtor - section 30(6) of I B Code, 2016 - HELD THAT - The Resolution Plan, which was approved by the Committee of Creditors on 21.08.2020 for Mr. Sanjay Punglia Resolution Applicant along with co-applicants viz., Mr. Abhishek Balar and Mr. Sudeep Dasani, confirm all the requisite conditions and reasonably satisfy all the stake holders of Corporate Debtor and it was approved with requisite majority. Therefore, the said Resolution Plan is a fit to be approved, under Section 31(1) of the IBC, 2016. Resolution Plan approved - application disposed off.

Summary

Issues Involved:
1. Approval of the Resolution Plan u/s 30(6) of I&B Code, 2016.
2. Compliance with Section 30(2) of the Code.
3. Voting and approval by the Committee of Creditors (COC).
4. Distribution of payments to various stakeholders.
5. Implementation and supervision of the Resolution Plan.
6. Exemptions and reliefs sought by the Resolution Applicants.

Summary:

1. Approval of the Resolution Plan u/s 30(6) of I&B Code, 2016:
- LA. No. 394 of 2020 was filed by the Resolution Professional (RP) seeking approval of the Resolution Plan submitted by Mr. Sanjay Punglia and co-applicants, approved by the COC on 21.08.2020.

2. Compliance with Section 30(2) of the Code:
- The RP examined the Resolution Plan to ensure it meets the requirements of Section 30(2), including payment of insolvency resolution process costs, operational creditors, management of corporate debtor's affairs, implementation, and supervision of the plan, and compliance with the law.

3. Voting and approval by the Committee of Creditors (COC):
- The COC, consisting of two operational creditors, approved the Resolution Plan with 100% voting share during the meeting on 21.08.2020.

4. Distribution of payments to various stakeholders:
- The Resolution Plan included payments for statutory dues, operational creditors, financial creditors, workmen and employees, and equity shareholders. Specific amounts and schedules were detailed, including upfront payments and deferred payments.

5. Implementation and supervision of the Resolution Plan:
- The RP submitted various documents and statements confirming compliance with the Code and regulations. The RP also certified that the Resolution Plan does not contravene any law and has been approved by the COC with 100% voting share.

6. Exemptions and reliefs sought by the Resolution Applicants:
- The Resolution Plan sought exemptions and reliefs, including immunity from past liabilities, no requirement for further approvals for share capital reconstitution, and adjustments for payments made after CIRP commencement.

Judgment:
- The Tribunal approved the Resolution Plan submitted by Mr. Sanjay Punglia and co-applicants, binding on the Corporate Debtor and all stakeholders.
- The moratorium imposed on 02.03.2020 ceased to have effect.
- The RP was directed to hand over management control to the Resolution Applicants and forward all CIRP records to the Board.
- The Resolution Applicants were given one year to obtain necessary approvals under applicable laws.
- Liberty was granted to file miscellaneous applications for clarifications in implementing the Resolution Plan.
- No order as to costs.