2024 (4) TMI 562 - Tri - Insolvency and Bankruptcy

Condonation of delay of 34 days in submission of report under Section 112(1) of IBC - rejection of the repayment plan by the creditors - seeking necessary orders to the creditors for payment of Resolution Professional fee and expenses, already approved by the creditors - HELD THAT - The delay of 34 days i.e. for the period from 24.10.2023 to 27.11.2023 arose in view of the delay in approval of the repayment plan, is condoned. Approval of the Repayment Plan submitted by the Personal Guarantor - HELD THAT - The repayment plan placed before the 3rd creditors meeting held on 12.10.2023 was rejected by the Creditors with 88.52% and the remaining 11.48% did not exercise their vote - Considering the report of the Resolution Professional filed u/s. 112 and rejection of the Repayment Plan by the creditors, the creditors shall be entitled to file an application for Bankruptcy under Chapter IV consequent to the rejection of the Repayment Plan. The RP stands discharged. Since the Creditors have approved the payment of Resolution Professional fee and expenses with 64.01% voting share, the Resolution Professional fee and expenses of Rs.6,75,000/- as already approved by the creditors shall be paid. Application allowed.

Summary

Issues Involved:
The issues involved in the judgment are the delay in submission of a report under Section 112(1), rejection of the repayment plan by creditors, and payment of Resolution Professional fee and expenses.

Delay in Submission of Report under Section 112(1):
The Resolution Professional (RP) filed an application seeking to condone the delay of 34 days in submission of the report under Section 112(1) due to the extension of the voting time requested by creditors. The delay arose in view of the approval of the repayment plan, and after considering the facts, the Tribunal condoned the delay for the period from 24.10.2023 to 27.11.2023.

Rejection of Repayment Plan by Creditors:
The Repayment Plan submitted by the Personal Guarantor was placed before the 3rd creditors meeting and was rejected by 88.52% of the creditors, with the remaining 11.48% not exercising their vote. Consequently, the creditors are entitled to file an application for Bankruptcy under Chapter IV, and the RP stands discharged. The Resolution Professional fee and expenses of Rs.6,75,000/- as approved by 64.01% of the creditors shall be paid.

Payment of Resolution Professional Fee and Expenses:
The RP sought necessary orders for the payment of Resolution Professional fee and expenses of Rs.6,75,000/- as already approved by the creditors. With the approval of 64.01% of the creditors, the Tribunal directed that the fee and expenses shall be paid, and the application was allowed and disposed of accordingly.