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2021 (11) TMI 786 - Tri - Insolvency and BankruptcySeeking approval of the Resolution Plan - Section 30(6) of the Insolvency Bankruptcy Code, 2016 - HELD THAT - All the requirements of Section 30 (2) are fulfilled. In respect of compliances regarding CIRP Regulations especially Regulations 38 and 39, the Resolution Professional has certified in Form-H and explained in details that the Resolution Plan has complied with all the required Regulations. There is no impediment in giving approval to the Resolution Plan. Accordingly, the Resolution Plan is approved, which was earlier approved by the CoC by the majority vote of 99.09% - It is clarified that Section 30 (2) (f) of the Code mandates that the Resolution Plan should not be against any provisions of the existing law. The Resolution applicant therefore, shall adhere to all the applicable laws for the time being in force under the proposed Resolution Plan, whether or not specifically provided therein. Application allowed.
Issues:
Approval of the Resolution Plan under Section 30(6) of the Insolvency & Bankruptcy Code, 2016. Analysis: 1. The petition was filed seeking approval of the Resolution Plan under Section 30(6) of the Code. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, and a Committee of Creditors (CoC) was constituted, which approved a revised Resolution Plan submitted by a resolution applicant. 2. The Resolution Professional ensured compliance with various provisions of the Code, including Section 30(2) which outlines requirements for a Resolution Plan. The Plan addressed payment of insolvency resolution process costs, debts of operational and financial creditors, management of the Corporate Debtor, implementation and supervision of the Plan, and conformity with legal provisions. 3. The Resolution Plan detailed the payment plan, management structure, and monitoring committee, meeting the criteria set out in Section 30(2) of the Code. The Resolution Professional certified compliance with the Code's provisions and regulations, ensuring the Plan's effectiveness and adherence to legal requirements. 4. The Resolution Plan was approved by the CoC with a 99.09% favorable vote, indicating commercial wisdom and acceptance by the majority of creditors. The Tribunal referenced a Supreme Court judgment emphasizing the importance of CoC's commercial judgment in approving resolution plans. 5. The Tribunal found no impediment to approving the Resolution Plan, as it met the requirements of Section 30(2) of the Code and had sufficient provisions for effective implementation. The Resolution Plan was declared compliant with existing laws, and the moratorium order was lifted. 6. The Resolution Professional was directed to submit all relevant records to the Insolvency and Bankruptcy Board of India (IBBI) for database recording, and the approved Resolution Plan was deemed effective from the date of the order. This detailed analysis of the judgment highlights the key aspects of the case, including the initiation of CIRP, approval of the Resolution Plan, compliance with legal provisions, CoC's role, and the Tribunal's decision to approve the Plan.
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