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2023 (2) TMI 1377 - Tri - IBCSeeking approval of the Resolution Plan submitted by the Resolution Applicant - Section 30(6) of the Insolvency and Bankruptcy Code 2016 - HELD THAT - The Resolution Plan submitted by Six Sigma Investment Funds is hereby approved. It shall become effective from this date and shall form part of this order. It shall be binding on the Corporate Debtor its employees members creditors including the Central Government any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due guarantors and other stakeholders involved in the Resolution Plan - The moratorium under Section 14 of the Code shall cease to have effect from this date. The approval of the Resolution Plan shall not be construed as waiver of any statutory obligations of the Corporate Debtor and shall be dealt by the appropriate Authorities in accordance with law. Any waiver sought in the Resolution Plan shall be subject to approval by the Authorities concerned. In terms of the judgement of Hon ble Supreme Court in the matter of Ghanshyam Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited 2021 (4) TMI 613 - SUPREME COURT on the date of approval of the Resolution Plan by the Adjudicating Authority all such claims which are not a part of resolution plan shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim which is not part of the resolution plan. Conclusion - The Resolution Plan submitted by SSIF was approved and the tribunal issued directions for its implementation. The plan became binding on all stakeholders including the Corporate Debtor its employees and government authorities. 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 provisions of the Insolvency and Bankruptcy Code and related regulations. 3. Consideration of pending applications related to preferential transactions. 4. Handling of claims and objections from stakeholders. 5. Provisional attachment orders by the Enforcement Directorate. Issue-wise Detailed Analysis: 1. Approval of the Resolution Plan: The application was filed under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval of the Resolution Plan submitted by Six Sigma Investment Funds (SSIF) on behalf of the Committee of Creditors (CoC) of the Corporate Debtor, Gangakhed Sugar & Energy Limited. The Resolution Plan was approved by 81.74% of the CoC members. The plan proposed a total consideration of Rs. 3,04,00,00,000 to be paid to stakeholders within 720 days and included Rs. 50,00,00,000 for capital expenditure and working capital. 2. Compliance with the Code and Regulations: The Resolution Plan was examined for compliance with Section 30(2) of the Code and Regulation 38 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The plan included provisions for the payment of insolvency resolution process costs, debts of operational creditors, and management of the Corporate Debtor's affairs post-approval. It was confirmed that the plan did not contravene any existing laws and was in compliance with the Code and CIRP Regulations. 3. Consideration of Pending Applications: Five applications related to preferential transactions under Section 43 of the Code were pending. The tribunal directed that these applications be pursued by the CoC through the incumbent Resolution Professional or another nominated person, with costs borne by the CoC. Any amounts recovered would be distributed among the Financial Creditors. 4. Handling of Claims and Objections: The tribunal addressed various claims and objections, including those from Sustainable AgroCommercial Finance Limited, whose claim was initially rejected due to incorrect filing. The tribunal directed the Resolution Professional to consider the claim under the appropriate class after verification. Additionally, Twentyone Sugars Limited's application for information on the evaluation process was dismissed, affirming the CoC's commercial wisdom. 5. Provisional Attachment Orders: The tribunal considered applications to set aside Provisional Attachment Orders by the Enforcement Directorate, which had attached the Corporate Debtor's assets alleging them as proceeds of crime. The tribunal ordered the release of attachments on assets acquired before the commencement of the Corporate Insolvency Resolution Process, citing immunity under Section 32A of the Code. Conclusion: The Resolution Plan submitted by SSIF was approved, and the tribunal issued directions for its implementation. The plan became binding on all stakeholders, including the Corporate Debtor, its employees, and government authorities. The tribunal emphasized that claims not part of the resolution plan were extinguished, in line with the Supreme Court's judgment in Ghanshyam Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited. The tribunal also addressed various applications, providing necessary directions for their resolution.
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