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2019 (5) TMI 601 - Tri - Insolvency and BankruptcyApproval of the resolution plan and its implementation - Corporate debtor - section 30(6) of the I and B Code, 2016 - HELD THAT - The CoC has considered the resolution plan afresh in the light of the objection raised by this Authority. The explanation provided in the supplementary affidavit is satisfactory. The resolution plan filed with typed set to the application meets the requirements of section 30(2) of the I and B Code, 2016 and regulations 37, 38, 38(1A) and 39 of the IBBI (CIRP) Regulations, 2016. The resolution plan is also not in contravention of any of the provisions of section 29A, Therefore, this Authority in exercise of the powers conferred under sub- section (1) of section 31 of the I and B Code, 2016, approves the resolution plan annexed with M. A. No. 515/IB/2018 filed in C. P. No. 689/IB/2017 by granting concession/exemptions as enumerated under paragraph 7.2 (A and B), paragraph 8.1 (A, N, O, P, Q, R, S), paragraphs 8.3, 8.5, 8,6, 8.7, 8.8 and 8.9 of the resolution plan - The resolution plan approved shall be binding on the corporate debtor, its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan. The resolution applicant shall, pursuant to the resolution plan approved under sub-section (1), obtain the 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 the Adjudicating Authority under sub- section (1) or within such period as provided for in such law, whichever is later.
Issues Involved:
1. Approval of the resolution plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. 2. Viability and feasibility of the resolution plan. 3. Concessions and exemptions sought by the resolution applicant. 4. Arrangement between the corporate debtor and Merchem India P. Ltd. (MIPL). 5. Uniformity in the reduction of debt for various creditors. 6. Compliance with legal provisions and regulations. Issue-wise Detailed Analysis: 1. Approval of the Resolution Plan: The resolution professional filed Miscellaneous Application No. 515 of 2018 seeking approval of the resolution plan submitted by Acme Chem Ltd. under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 for the corporate debtor. The resolution plan was unanimously approved by the Committee of Creditors (CoC) on September 12, 2018, as it met the conditions stipulated under Section 30(2) and was not barred under Section 29A of the I and B Code, 2016. 2. Viability and Feasibility of the Resolution Plan: The CoC initially approved the resolution plan based on its evaluation matrix, which rated Acme Chem Ltd.'s plan higher than that of Nitrex Chemicals India Ltd. However, the tribunal sought further explanation regarding the viability and feasibility of the plan. The CoC later confirmed that the plan was feasible and viable even without specific concessions/exemptions mentioned in the resolution plan. 3. Concessions and Exemptions Sought: The resolution applicant sought several reliefs and concessions, including exemptions from compliance with reduction of share capital, preferential allotment guidelines, and various environmental and fiscal incentives. The tribunal approved specific concessions and exemptions enumerated under paragraphs 7.2 (A and B), 8.1 (A, N, O, P, Q, R, S), and other related paragraphs of the resolution plan. 4. Arrangement Between Corporate Debtor and MIPL: The tribunal raised concerns about the arrangement between the corporate debtor and MIPL for the manufacturing facility. The CoC clarified that even if the agreement with MIPL was not renewed, it would not render the resolution plan unviable or infeasible. 5. Uniformity in Reduction of Debt: The tribunal questioned the lack of uniformity in the reduction of debt for various creditors. The CoC confirmed that the resolution plan provided for repayment of operational creditors' liabilities at a value not less than what would be paid in liquidation, ensuring no discrimination among creditors of the same class. 6. Compliance with Legal Provisions: The tribunal ensured that the resolution plan met the requirements of Section 30(2) of the I and B Code, 2016, and relevant regulations. The plan was not in contravention of any provisions of Section 29A. The tribunal approved the resolution plan with specific concessions and exemptions, making it binding on all stakeholders. Conclusion: The tribunal approved the resolution plan submitted by Acme Chem Ltd., granting specific concessions and exemptions. The moratorium ceased from the date of the order, and the resolution professional was directed to forward all records to the IBBI. The approved resolution plan became effective immediately, and the resolution professional was instructed to notify all participants and the resolution applicant.
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