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TMI Blog2018 (10) TMI 1335X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the provisions of the law for the time being in force. Less than seventy-five percent of the voting shares of the ‘Committee of Creditors’ in the matter of approval of the ‘Resolution Plan’ being against the provisions of clause (e) of sub-section (2) of Section 30, it cannot be approved. We uphold the decision of the Adjudicating Authority, Mumbai Bench dated 23rd November, 2017 which is under challenge in Company Appeal (AT) (Insolvency) and set aside the impugned order dated 27th November, 2017 passed by the Adjudicating Authority, Hyderabad Bench, which are under challenge in Company Appeals (AT) (Insolvency). In the result, the Company Appeal (AT) (Insolvency) is dismissed and Company Appeals (AT) (Insolvency) are allowed and the case of ‘Kamineni Steel & Power India Pvt. Ltd.’ is remitted to the Adjudicating Authority for initiation of liquidation proceeding in terms of Section 33 read with Section 34 of the ‘I&B Code’ who is required to pass order immediately. - Company Appeal (AT) (Insolvency) No. 45 of 2018 With Company Appeal (AT) (Insolvency) No. 23 of 2018, With Company Appeal (AT) (Insolvency) No. 335 of 2017 With Company Appeal (AT) (Insolvency) No. 15 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oticed and SBI Capital Markets Ltd. was requested to submit its final report. 7. The members of the Committee of Creditors in its 7th Meeting held on 26th September, 2017 comprising of 87.69% of voting power have expressed that revised Resolution Plan submitted by the Corporate Debtor is under circulation and that Corporate Debtor shall improve the offer to enable to consider the Resolution Plan . The lending bankers of the Committee indicated that the sustainable portion should be improved to 40% of the total debt. JMF ARC Limited holding 12.31% voting power had stated that they are not in favour of Resolution Plan submitted by the Corporate Debtor and they might reconsider only if the Corporate Debtor improves the levels of the sustainable debt. The Corporate Debtor was given one week s time. The Corporate Debtor in its turn sent a detailed mail to lenders on 29th September, 2017 explaining the entire position and with a request to give their valuable inputs and suggestions with clarity on the above subject to which request has been made for, so as to enable them to submit a detailed reply/ revised Resolution Plan . 8. In the 8th Meeting of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. One Time Settlement (OTS) proposal for the All banks put together ₹ 525.00 Crores 2. 1st Instalment for the OTS proposal to be paid 10% of the OTS amount by 31st March, 2018 3. Balance payment of the OTS proposal to be done in the following manner FY-2018-19-H1-30.09.2018 20% of OTS amount FY-2018-19-H2-31.03.2019 20% of OTS amount FY-2019-20-H1-30.09.2019 25% of OTS amount FY-2019-20-H2 By 31.12.2019 25% of OTS amount 4. Repayment period ** Structured Repayment period to be provided as proposed above for payment of the OTS amount without interest. 5 Remarks The above structured repayment of the OTS instalments could be accelerated/preponed in the event of early availability of Strategic Investor/stake sale than proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing sanction from appropriate authorities and the same is accepted by majority of the lenders. The Indian Overseas Bank having voting power of 15.15% rejected the Resolution Plan by way of revised OTS . 12. The in principle approvals by the members of the Committee of Creditors having voting power of 29.12% expressed that they remain OPEN awaiting the in principle approval from their respective sanctioning authorities. S. No. Name of the Bank % of Voting Power 1 Oriental Bank of Commerce 10.94 2 Central Bank of India 11.82 3 Bank of Maharashtra 6.36 Total 29.12 13. On 30th October, 2017, the Oriental Bank of Commerce having 10.94% voting power sent mail conveying their in principle agreeability for the Resolution Plan by way of OTS and that their final approval was subject to similar approvals from the majority of co-lenders. The Bank of Maharashtra havin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S Scheme . 18. The aforesaid common order has been challenged by the Appellant in Company Appeals (AT) (Insolvency) Nos. 23 of 2018, 45 of 2018 335 of 2017. 19. In Company Appeal (AT) (Insolvency) No. 15 of 2018, the Appellant has challenged the order dated 23rd November, 2017 passed by the Adjudicating Authority, Mumbai Bench, Mumbai. In the said case, the Corporate Insolvency Resolution Process was initiated against Innoventive Industries Limited . 20. The Committee of Creditors in the said Resolution Process , in its meeting voted with 66.57% in favour of the Resolution Plan . It was not approved with 75% of the voting shares of the Committee of Creditors . A Miscellaneous Application No. 557 of 2017 was filed by the Resolution Applicant namely- Suyash Outsourcing Pvt. Ltd. against Bank of India , Bank of Baroda , UCO Bank , Canbank Factors Ltd. , IFCI Factors , ICICI Bank Ltd. ( Financial Creditors ) for certain declaration and to direct Resolution Professional to allow the said Applicant to submit revised Resolution Plan after reducing the time earlier envisaged for obtaining shareholders approval from the period for making cash payments for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not accepted and no response was given by the Resolution Professional . Otherwise, he is not objecting to the Resolution Plan which has been approved by the Committee of Creditors and the Adjudicating Authority. 25. Company Appeal (AT) (Insolvency) No. 45 of 2018 is with regard to same Corporate Insolvency Resolution Process against Kamineni Steel Power India Pvt. Ltd. by the approved Resolution Applicant on the limited ground that the Adjudicating Authority has made certain observation with regard to liability of Guarantor. According to the Resolution Applicant , after approval of the Resolution Plan the right of the Guarantor vanishes. 26. Further, according to Successful Resolution Applicant in Kamineni Steel Power India Pvt. Ltd. if the counting of vote is done on the basis of actual number of members, it came to 44.8% which should be accepted. 27. In Company Appeal (AT) (Insolvency) No. 15 of 2018, the Adjudicating Authority has not accepted the Resolution Plan approved with 66.57% voting shares of the Committee of Creditors being less than 75%. In this case, the Appellant is the promoter of Innoventive Industries Ltd. - ( Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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