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2024 (5) TMI 205 - AT - Insolvency and BankruptcyReconsideration of Resolution plan - It is submitted that in order to ensure that no serious prejudice , is caused to the Petitioners / Appellants rights , and the same are not rendered Fait Accompli , it is just and necessary to secure the differential amount and deposit the same in an Escrow Account . - HELD THAT - On a careful consideration of the respective contentions, advanced on either side, this Tribunal , keeping in mind the Orders , passed by this Tribunal to the effect that in the meanwhile, any Order passed by the Tribunal , at Hyderabad, shall be subject to the final outcome of this Appeal , in the meantime, the Plan Approval Proceedings , to be undertaken by the Tribunal , shall be subject to the final outcome of the present appeal , and apart from the same, to safeguard the interests of the Petitioners / Appellants , pending final decision of the main Comp. App, quite in the fitness of things, simpliciter, on the basis of Fair Play , Good Conscience , to avoid any further complications / wider implications / ramifications and to prevent an Aberration of Justice , in the subject matter in issue, passes an Order , in directing the Respondents , to place an amount of Rs.543.28 Crores , being the amount equivalent to the difference between Entitlement of the Petitioners / Appellants , in an Escrow Account , till the final determination of the main Comp. Appeal. Appeal disposed off.
Issues Involved:
1. Entitlement of Petitioners/Appellants u/s 30(2)(b) of the I&B Code, 2016. 2. Distribution mechanism for Resolution Plan Proceeds. 3. Approval and implementation of the Resolution Plan. 4. Protection of Petitioners/Appellants' interests pending final adjudication. Summary: Issue 1: Entitlement of Petitioners/Appellants u/s 30(2)(b) of the I&B Code, 2016 The Petitioners/Appellants, as Financial Creditors, sought an order directing the Respondents to place Rs.543.28 Crores in an Escrow Account or with the Appellate Tribunal until the final adjudication of the appeal. This amount represented the difference between their entitlement calculated in compliance with Section 30(2)(b) of the I&B Code, 2016, and the amounts computed by the 1st Respondent with the approval of the Committee of Creditors (CoC). Issue 2: Distribution mechanism for Resolution Plan Proceeds The Petitioners/Appellants contended that the Resolution Plan submitted by Adani Power Limited and other consortia was put to vote in the 69th CoC Meeting. Despite their suggestions to reconsider the distribution mechanism for Resolution Plan Proceeds, the CoC and Resolution Professional decided to proceed with the distribution, which was under challenge in the appeal. Issue 3: Approval and implementation of the Resolution Plan The Petitioners/Appellants argued that the Resolution Plan was approved by the requisite majority of the CoC, but they had either abstained from voting or dissented. They feared that once the proceeds from the Resolution Plan were distributed, there would not be any proceeds left for them if they succeeded in the appeal. Issue 4: Protection of Petitioners/Appellants' interests pending final adjudication The Petitioners/Appellants emphasized the need to protect their interests and ensure that their rights were not prejudiced pending the appeal's outcome. They requested that the differential amount be placed in an Escrow Account to secure their entitlement. Submissions of R1/Resolution Professional The 1st Respondent/Resolution Professional did not file a reply but contended that the Petitioners/Appellants' interests were protected by an interim order dated 21.11.2023, which made any order in CP No. (IB) No. 420/7/HYD/2018 subject to the final outcome of the appeal. Gist of Memo of Objections filed on behalf of R2 to R9 & R12 R2 to R9 and R12 (majority of CoC) argued that the Petitioners/Appellants' interests were protected by the interim order and that the Petitioners/Appellants could only claim an incremental sum of Rs.277 Crores, not Rs.543.28 Crores. They highlighted that the Plan Approval Application was pending and that the issue of depositing any money would arise only after the proceeds were remitted by the Successful Resolution Applicant. Tribunal's Decision The Tribunal, after considering the respective contentions and the interim order dated 21.11.2023, directed the Respondents to place Rs.543.28 Crores in an Escrow Account to safeguard the Petitioners/Appellants' interests pending the final determination of the main appeal. The IA No. 353 of 2024 was accordingly disposed of with no costs.
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