2024 (9) TMI 1613 - Tri - Companies Law

Seeking approval of the Resolution Plan - Section 30(6) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulation - HELD THAT - All the requirements of Section 30(2) are fulfilled and no provision of law for the time being in force appears to have been contravened. 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 the requirements. The instant Resolution Plan meets the requirements of Section 30(2) of the Code and the Regulations 37, 38, 38(1A) and 39(4) of the CIRP 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. The Application is allowed and the Resolution Plan submitted by Mr. Harry Dhaul is hereby approved.

Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with the requirements of Section 30(2) of the Code.
3. Payment of CIRP costs.
4. Payment of debts to Operational Creditors.
5. Payment to Secured and Unsecured Financial Creditors.
6. Payment to Employees and Workmen.
7. Implementation and supervision of the Resolution Plan.
8. Eligibility under Section 29A of the Code.
9. Pending applications and claims.
10. Reliefs and concessions sought by the Resolution Applicant.

Detailed Analysis:

1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016:
The Tribunal approved the Resolution Plan submitted by Mr. Harry Dhaul, which was unanimously approved by 100% of the Committee of Creditors (CoC) on 23.03.2023. The plan was submitted under Section 30(6) of the Code and Regulation 39(4) of the CIRP Regulations.

2. Compliance with the requirements of Section 30(2) of the Code:
The Tribunal confirmed that the Resolution Plan met all the requirements of Section 30(2) of the Code, which includes:
- Payment of CIRP costs.
- Payment to Operational Creditors.
- Management of the affairs of the Corporate Debtor.
- Implementation and supervision of the Resolution Plan.

3. Payment of CIRP costs:
The Resolution Plan provides for the payment of CIRP costs in priority to other debts, as required under Section 30(2)(a) of the Code. The estimated unpaid CIRP costs of INR 0.60 crores as of December 31, 2022, will be paid within 180 days of the effective date.

4. Payment of debts to Operational Creditors:
The Resolution Plan proposes to pay an amount of Rs. 24.7727 crores to Operational Creditors. The payment will be made in priority over Financial Creditors, as specified under Section 30(2)(b) of the Code. The plan also addresses the settlement of EPFO dues and other statutory obligations.

5. Payment to Secured and Unsecured Financial Creditors:
- Secured Financial Creditors will receive INR 9.2232 crores within three years of the handover of management.
- Unsecured Financial Creditors will not receive any payment under the plan.
- Dissenting Financial Creditors will be paid in accordance with Section 53(1) of the Code.

6. Payment to Employees and Workmen:
The plan proposes to pay INR 18,20,000 towards Employees' claims within 360 days of the handover of management. No claims were received from Workmen.

7. Implementation and supervision of the Resolution Plan:
The plan includes a detailed implementation schedule and proposes the formation of a Steering Committee to manage the affairs of the Corporate Debtor. The Monitoring Agency will supervise the implementation and file status reports with the Tribunal every quarter.

8. Eligibility under Section 29A of the Code:
The Resolution Applicant confirmed compliance with Section 29A of the Code, making them eligible to submit the Resolution Plan. The compliance was verified through Form H dated 26.06.2023.

9. Pending applications and claims:
The Tribunal addressed IA 2332 of 2023 filed by the Regional Provident Fund Commissioner, directing the Resolution Applicant to pay the principal amount of Rs. 77,67,128 within 180 days. The remaining amount will be paid as per the judgment in the case of Regional Provident Fund Commissioner, EPFO Regional Office, Jamshedpur v. Mamta Binani.

10. Reliefs and concessions sought by the Resolution Applicant:
The Tribunal granted reliefs and concessions as stipulated under Section 32A of the Code, exempting the Corporate Debtor from liabilities for offenses committed prior to the commencement of CIRP. However, any exemptions sought in violation of existing laws were not granted.

Conclusion:
The Tribunal approved the Resolution Plan submitted by Mr. Harry Dhaul, finding it compliant with the requirements of the Insolvency and Bankruptcy Code, 2016. The plan addresses the payment of CIRP costs, debts to Operational and Financial Creditors, and Employees' claims. The implementation and supervision of the plan will be monitored by a Steering Committee and a Monitoring Agency. The Tribunal also addressed pending claims and granted necessary reliefs and concessions while ensuring compliance with existing laws.

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