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TMI Blog2018 (9) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... objections raised on behalf of the workmen at the time of consideration of the approval of the resolution plan in hand are found devoid of any merit. Upon commencement of the CIRP any legal proceedings if any initiated against the corporate debtor is to be stayed and there is no bar on any suit or proceedings instituted by the corporate debtor as against an operational creditor. That being so pendency of a civil suit filed by the corporate debtor as against the intervener in this case is not at all a bar to proceedings initiated in this case at the instances of the corporate debtor. No other objections raised on any other sides regarding approval of the resolution plan. The Resolution Plan in hand fulfilled to meet the requirements as referred to in sub-section (2) of section 30 of the Code. However, it is pertinent to note that this is a unique Resolution Plan rather a plan for repayment of outstanding debts found due from the corporate debtor to various stake holders and to its workmen and staff. The corporate debtor/ corporate applicant was an industry originally engaged in wagon manufacturing which is at present running at loss due to intense competition following the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kamal Sen, Mr. A.K. Sen, Advocate, Mr. S. Mukherjee, Mr. R.S. Tiwari, Mr. Abhishek Sikdar, Mr. Jayanta Samanta, Advocate, Mr. Saibal Sengupta, Advocate, Mr. R.L. Mitra, Advocate, Mr. Niladri Khanra, Advocate, Mr. Amitava Mukherjee, Ms. Arpita Saha, Mr. Anirudha Roy, Advocate, Mr. Rahul Auddy, Advocate, Ms. Sarmistha Ghosh, Advocate, Mr. Soumya Majumdar, Advocate, Mr. S. Bhattacharya, Advocate, Mr. Joydeep Acharya, Mr. P. Mukherjee, Advocate: For the Appellant None: For the Respondent ORDER This is an application filed by Ex-employees Welfare Association allegedly representing 4000+odd employees who were working for the Corporate Applicant and who have taken voluntary retirement from services and/or ex-employees claiming mainly that some of the claims of the ex-employees lodged with the Resolution Professional were rejected and their prayer for implementation of 1992 pay revision arrears, 1997 pay revision arrears and 2007 pay revision arrears and to consider the order passed by the Hon'ble High Court at Kolkata in W.P. No.372(W) of 2000. According to the Ld. Counsel appearing on the side of the Union, many of the workmen's claims which were lodged with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay revision, no data furnished from the side of the Applicant that it has been implemented in the Corporate Applicant. The Ld. Resolution Professional also submits that 2007 pay revision has not been implemented in the company by the Corporate Debtor at all. He further submits that 1992 pay revision has been implemented and the arrears of 1992 pay revision had been admitted as admissible claims of the Applicant. A reference to the Resolution Plan strengthen the said contention of the Ld. Resolution Professional. 1992 pay revision being implemented, it appears to me that there is no violation of direction in the order in Writ Petition No.372(W) of 2000 of the Hon'ble High Court at Calcutta. In view of the above-said discussion, this application requires no consideration at all. Moreover, the relief sought for becomes infractuous because the Resolution Plan has been approved by this Bench. In the result, this Application is dismissed. However, no order as to costs. Certified copy of the order may be issued, if applied for, upon compliance with all requisite formalities. (Jinan K.R.) Member (J) Signed on this, the 6 th day of March, 2018 ORDER Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of approval of Resolution Plan In the result, this Application is dismissed. However, no order as to costs. Certified copy of the order may be issued, if applied for, upon compliance with all requisite formalities. (Jinan K.R.) Member (J) Signed on this, the 6 th day of March, 2018 ORDER This C.A. has been filed under section 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 for the approval of resolution plan. 2. This is a case in which a public limited company wholly owned by Government of India under the Ministry of Railways by name Burn Standard Co. Ltd. (Corporate Applicant) has filed the C.P for initiating corporate insolvency resolution process. 3. The Corporate Applicant in the instant case has firstly approached before the Board of Industrial and Financial Reconstruction (BIFR) in the year 1994 by filing a reference under section 3(1)(0) of the Sick Industrial Companies (Special Provisions) Act, 1985 and got an order declaring the applicant company as a Sick company vide BIFR order dated 20.01.1995. While so, upon the announcement of Insolvency Bankruptcy Code, 2016 w.e.f. 01.12.2016, the Corporate Applicant filed this application i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pared on the basis of a fund allocated by the Ministry of Railways in the Railway Budget for the financial year 2018-19. 8. It is that Resolution Plan came up for consideration for the approval of this Bench. CoC after due deliberations with 100 percentage voting share approved the Resolution Plan in hand. The CoC approved the Resolution Plan that was prepared by the Corporate Debtor (Corporate Applicant) and presented by the Resolution Professional which confirms the conditions referred to in section 30(2) of the I. B. Code, 2016 and Regulation 9 of the I.B.B.I. (Insolvency Resolution Process for Corporate Persons) Regulation, 2016. The resolution plan submitted by the resolution professional approved by the committee also contains the certification as required under Regulations 39(4). 9. The Ld. Counsel appearing for the Resolution Professional submitted that all the requirements stipulated under section 30(2) of the I. B. Code, 2016 have been complied with by the Resolution Professional and it is that plan was placed before the CoC and at the meeting held on 20.02.2018, the COC approved it by 100% majority of the members constituting the CoC. The Resolution Plan submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the prescribed format for the consideration of the claims cannot be a ground for rejection of the resolution plan in hand 14. The next contention on the side of the workmen's Union is that resolution professional not cared to implement pay scale revision of 1992, 1997 and 2007, and therefore they are deprived of arrears of pay revision which is otherwise have been extended to staff union. According to the Ld. Counsel for the workmen union there is discrimination in not extending arrears of pay revision to workmen and ex-employees and hence directions are to be issued to the resolution professional for implementation of pay revision arrears allegedly extended to them as per the above referred pay revision. 15. The Ld. Resolution Professional submits that 1992 pay revision has been implemented and the arrears of 1992 pay revision had been admitted as admissible claims of the Applicant. A reference of Resolution Plan shows that it provides payment of arrears of 1992 pay revision inclusive of pending dues to the employees like gratuity and leave encashment and pending salary for one month. 16. Ld. Counsel for the workmen at this juncture on the strength of an order in W. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther a plan for repayment of outstanding debts found due from the corporate debtor to various stake holders and to its workmen and staff. The corporate debtor/ corporate applicant was an industry originally engaged in wagon manufacturing which is at present running at loss due to intense competition following the entry of new players. High level of debt and increased loses prompt the corporate applicant to file the application in hand. 20. The Resolution Plan has been prepared on the strength of a letter no.2018/M(W)/300/2 dated 12.02.2018 addressed to the Corporate Debtor/ Corporate Applicant from the Ministry of Railways (Railway Board), Government of India, who recommended closure of Corporate Applicant company. Therefore, what is to be understood from the Resolution Plan is that on the basis of allocation of fund in the budget 2018-19, the Corporate Applicant would like to settle its liabilities and provides a repayment plan. So, the Resolution Plan in hand is a repayment plan for settlement of liabilities of the Corporate Applicant so that the closure of the Corporate Applicant can be effected, instead of liquidating the company. 21. On going through the letter above and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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