2021 (1) TMI 505 - Tri - Insolvency and Bankruptcy

Approval of the resolution plan - section 30(6) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - By virtue of mandatory contents of resolution plan, the same is in accordance with sections 30 and 31 of the Code, and also complies with the requirement of regulations 38 and 39 of the CIRP Regulations. The resolution applicant has sought certain reliefs and concessions in the resolution plan. This Bench is not inclined to allow any of the said reliefs and concessions prayed by the resolution applicant. Therefore, the resolution applicant may apply to the relevant regulatory authorities for said reliefs and concessions and the relevant authorities may consider it as per relevant applicable laws - The resolution applicant, on taking control of the corporate debtor, shall ensure compliance under all applicable laws for the time being in force. It is made clear that the resolution applicant shall take over the corporate debtor with all its assets and liabilities as per terms of the approved resolution plan. The resolution plan shall be approved with modifications, which shall be binding on the corporate debtor and its employees, members, creditors, guarantors, resolution applicant and other stakeholders involved in the resolution plan. Resolution plan is approved - 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 requirements of sections 30 and 31 of the Code and regulations 38 and 39 of the CIRP Regulations.
3. Evaluation and approval process by the Committee of Creditors (CoC).
4. Reliefs and concessions sought by the resolution applicant.
5. Compliance with applicable laws and responsibilities of the resolution applicant post-approval.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan:
The application was filed by the resolution professional seeking approval of the resolution plan for the corporate debtor, Maruti Cotex Ltd., as approved by the CoC with a 100% voting share. The resolution plan was submitted by the SSCPL Consortium.

2. Compliance with Sections 30 and 31 of the Code and Regulations 38 and 39 of the CIRP Regulations:
The resolution professional confirmed that the resolution plans received were in compliance with section 29A and section 30(2) of the Code. The liquidation value of the corporate debtor's assets was determined to be ?88.07 crores. The CoC considered and deliberated on the resolution plans and requested improvements. The final resolution plan submitted by the SSCPL Consortium proposed payments totaling ?77.11 crores, including ?1 crore for CIRP costs, ?75.61 crores to secured financial creditors, and ?0.50 crore to operational creditors, all payable within 50 days of approval.

The resolution plan included mandatory contents such as prioritization of payments to operational creditors over financial creditors, management and control of the corporate debtor's business, implementation provisions, and compliance with applicable laws. The plan addressed the interests of all stakeholders and demonstrated feasibility and viability.

3. Evaluation and Approval Process by the CoC:
The CoC evaluated the resolution plans in multiple meetings and approved the SSCPL Consortium's plan with a 100% vote. The plan was confirmed to meet all requirements of the Code and Regulations, and a compliance certificate in Form H was submitted.

4. Reliefs and Concessions Sought by the Resolution Applicant:
The resolution applicant sought certain reliefs and concessions, which the Tribunal declined to grant. The applicant was advised to apply to relevant regulatory authorities for such reliefs and concessions, which would be considered as per applicable laws.

5. Compliance with Applicable Laws and Responsibilities Post-Approval:
The resolution applicant, upon taking control of the corporate debtor, is required to ensure compliance with all applicable laws. The applicant must take over the corporate debtor with all its assets and liabilities as per the approved resolution plan.

Conclusion:
The Tribunal approved the resolution plan with modifications, making it binding on all involved parties. The resolution professional was directed to forward all records related to the insolvency resolution process and the resolution plan to the IBBI. The application was allowed and disposed of accordingly.

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