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TMI Blog2018 (6) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the interim order passed by this Appellate Tribunal on 4th May, 2018 which reads as follows: "During the pendency of the Appeal, it will be open to the 'Committee of Creditors' and the Adjudicating Authority to approve one or other 'Resolution Plan', including the Plans if received subsequently which will be subject to the decision of this Appeal." 2. Learned senior counsel for 1st Respondent submits that the resolution plan or the eligibility of Resolution Applicant are to be considered by the 'Committee of Creditors' and the 'Adjudicating Authority' but the Resolution Professional has given notice to the parties that he will decide about the eligibility of one or other Resolution Applicant. 3. According to learned senior counsel for the Appellant, the Resolution Professional is required to decide whether resolution plan(s) are in accordance with existing provisions of law and fulfil other conditions as prescribed under Section 30(2) of the I&B Code, 2016 and therefore, it is within the domain of the Resolution Professional to decide such issue. 4. Learned senior counsel appearing on behalf of 'Committee of Creditors' submits that the Committee of Creditors are requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bts of Operational Creditor(s), management of the affairs of the corporate debtor, implementation and supervision of the resolution plan, other requirements as may be specified by the Board and does not contravene any of the provisions of law for the time being in force. The relevant provisions of Section 30 are quoted below for proper appreciation: "30. Submission of resolution plan. - (1) A resolution applicant may submit a resolution plan to the resolution professional prepared on the basis of the information memorandum. (2) The resolution professional shall examine each resolution plan received by him to confirm that each resolution plan - (a) provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the repayment of other debts of the corporate debtor; (b) provides for the repayment of the debts of operational creditors in such manner as may be specified by the Board which shall not be less than the amount to be paid to the operational creditors in the event of a liquidation of the corporate debtor under section 53; (c) provides for the management of the affairs of the Corporate debtor after approval of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporate insolvency resolution process of the corporate debtor: Provided that the person shall be eligible to submit a resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to non-performing asset accounts before submission of resolution plan; (d) has been convicted for any offence punishable with imprisonment for two years or more; (e) is disqualified to act as a director under the Companies Act, 2013; (f) is prohibited by the Securities and Exchange Board of India from trading in securities or accessing the securities markets; (g) as been a promoter or in the management or control of a corporate debtor in which a preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction has taken place and in respect of which an order has been made by the Adjudicating Authority under this Code (h) has executed an enforceable guarantee in favour of a creditor in respect of a corporate debtor against which an application for insolvency resolution made by such creditor has been admitted under this Code (i) has been subject to any disability, corresponding to clauses (a) to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nic means as may be specified. (2) All meetings of the committee of creditors shall be conducted by the resolution professional. (3) The resolution professional shall give notice of each meeting of the committee of creditors to - (a) members of Committee of creditors; (b) members of the suspended Board of Directors or the partners of the corporate persons, as the case may be; (c) operational creditors or their representatives if the amount of their aggregate dues is not less than ten per cent of the debt. (4) The directors, partners and one representative of operational creditors, as referred to in sub-section (3), may attend the meetings of committee of creditors, but shall not have any right to vote in such meetings: Provided that the absence of any such director, partner or representative of operational creditors, as the case may be, shall not invalidate proceedings of such meeting. (5) Any creditor who is a member of the committee of creditors may appoint an insolvency professional other than the resolution professional to represent such creditor in a meeting of the committee of creditors: Provided that the fees payable to such insolvency professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proving or rejecting one or other resolution plan should follow such procedure which is transparent. Those who will watching the proceeding such as (suspended) Board of Directors or its Partners; Operational Creditors or its representatives and Resolution Applicant(s) are not mere spectator but may express their views to the Committee of Creditors for coming to conclusion in one or other way. 16. For the reason aforesaid we are of the view that the Committee of Creditors should record reasons (in short) while approving or rejecting one or other resolution plan. 17. Views, if any, are expressed by the (suspended) Board of Directors or it's Partners; Operational Creditors or its representatives and Resolution Applicant(s), are also required to be taken into consideration by the Committee of Creditors before approving or rejecting one or other resolution plan. The views so expressed by any of those who are watching the proceeding should also be recorded (in short). 18. As the resolution plans are opened and placed before the Committee of Creditors, as per Section 30(5), the Resolution Applicant(s) are entitled to be present. At this stage they may point out whether one or other per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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