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2021 (1) TMI 1139 - Tri - Law of CompetitionSeeking approval of Resolution Plan - Section 30(6) and 31 of Insolvency and Bankruptcy Code 2016 - HELD THAT - The Resolution Plan is in accordance with Section 30 and 31 of the Code and also complies with the requirement of Regulations 38 and 39 of CIRP Regulations - Resolution Plan approved by the CoC with the required majority satisfies all the criteria required for approval of Resolution Plan by the Adjudicating Authority. The Resolution Applicant on taking control of the Corporate Debtor shall ensure compliance of all applicable law for the time being in force - the Resolution Applicant shall take over the Corporate Debtor with all its assets and liabilities as per terms of the approved Resolution Plan. If any relief concerning any identified liability of the Corporate Debtor is required then that needs to be specifically mentioned and sought for in the Resolution Plan. On approval of the Resolution Plan as sought by the Resolution Professional this Bench hereby discharges the Resolution Professional from duties of the RP by submitting all the records maintained by him to the Insolvency and Bankruptcy Board of India as provided under the Insolvency and Bankruptcy Code 2016 and the Regulations thereunder - Resolution Applicant shall pursuant to the Resolution Plan approved under Sub-Section (1) of Section 31 obtain necessary approval required under any law for the time being in force within a period of one year from the date of approval of the Resolution Plan by this Tribunal under Sub-Section (1) of Section 31 or within such period as provided for in such law whichever is later. The resolution plan is approved - moratorium declared.
Issues Involved:
1. Appointment and actions of the Resolution Professional (RP) 2. Compliance with Insolvency and Bankruptcy Code (IBC) and related regulations 3. Invitation and evaluation of Expressions of Interest (EOI) and Resolution Plans 4. Approval of the Resolution Plan by the Committee of Creditors (CoC) 5. Financial restructuring and payment to creditors 6. Reliefs sought by the Resolution Applicant 7. Approval and implementation of the Resolution Plan by the Tribunal Issue-wise Detailed Analysis: 1. Appointment and Actions of the Resolution Professional (RP): The Tribunal initiated the Corporate Insolvency Resolution Process (CIRP) against Churakulam Tea Estate Private Limited on 28.11.2019, appointing Mr. C. A. Jasin Jose as the Interim Resolution Professional (IRP), who was later confirmed as the Resolution Professional (RP) by the CoC on 16.01.2020. The RP conducted the CIRP in compliance with the IBC and relevant regulations, including issuing advertisements to invite claims from creditors and expressions of interest (EOI) from prospective resolution applicants. 2. Compliance with Insolvency and Bankruptcy Code (IBC) and Related Regulations: The RP verified the compliance of the prospective Resolution Applicants with Section 25(2)(h) and Section 29A of the IBC, 2016. The RP found one applicant unsatisfactory and extended the time for submission of EOI, reissuing Form G as per Regulation 36(A). Despite reissuing, only one Resolution Application was received from Mr. Jose Pradeep. 3. Invitation and Evaluation of Expressions of Interest (EOI) and Resolution Plans: The RP received and verified EOIs, ultimately finalizing a provisional list with one applicant. The CoC extended the deadline for submitting the Resolution Plan and later received the plan on 26.08.2020. The CoC held multiple meetings to discuss and vote on the Resolution Plan, with the final plan being submitted on 29.10.2020 and unanimously approved on 20.11.2020. 4. Approval of the Resolution Plan by the Committee of Creditors (CoC): The CoC unanimously approved the Revised Resolution Plan with 100% voting rights. The RP certified that the plan complied with the provisions of the IBC, 2016. The CoC's approval was based on the plan's feasibility and viability for reviving the Corporate Debtor. 5. Financial Restructuring and Payment to Creditors: The Resolution Plan proposed a financial restructuring involving a payment of ?17.42 Crores to financial creditors, including South Indian Bank, Stancash Chits Pvt Ltd, and Financial Excellence. The plan also included the payment of ?2.02 Crores to operational creditors, prioritizing them over financial creditors. The funds for these payments were to be sourced from the Resolution Applicant's upfront contributions and cash flow from estate operations. 6. Reliefs Sought by the Resolution Applicant: The Resolution Applicant sought various reliefs, including the withdrawal of suits against the Corporate Debtor, prepayment options for dues, and a cure period for payment defaults. The Tribunal rejected reliefs related to future and contingent liabilities and modifications to the Resolution Plan post-approval. 7. Approval and Implementation of the Resolution Plan by the Tribunal: The Tribunal found the Resolution Plan compliant with Sections 30 and 31 of the IBC and Regulations 38 and 39 of CIRP Regulations. The plan addressed all stakeholders' interests, including financial and operational creditors. The Tribunal approved the Resolution Plan, making it binding on all parties involved and discharging the RP from his duties. The moratorium order ceased, and the RP was directed to forward all records to the IBBI. The Resolution Applicant was given a year to obtain necessary approvals for implementing the plan. Conclusion: The Tribunal approved the Resolution Plan submitted by Mr. Jose Pradeep, finding it compliant with the IBC and CIRP Regulations. The plan aimed to revive the Corporate Debtor, ensuring payments to creditors and addressing stakeholders' interests. The RP was discharged, and the moratorium order ceased, marking the completion of the CIRP for Churakulam Tea Estate Private Limited.
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