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TMI Blog2018 (1) TMI 1501X X X X Extracts X X X X X X X X Extracts X X X X ..... rding of an analytical 'satisfaction' is a condition precedent before granting of approval. In this Plan there is inconsistency that under the Heading Assumption as per Clause it is noted that, quote New Promoters Deposit to the extent ofe2 crores to be allowed to be convened into Equity Shares by Financial Year 2022-23. However, under the Head Conclusion as per Clause V under the Head Promoters' Loan it is proposed, quote the fresh Unsecured Loans of ₹ 350 lakhs to be infused by the Promoters under the Resolution Plan shall be repayable during 2021-23 - Considering the financially stressed position Of the Debtor Company the fresh Unsecured Loans infused by the Promoters is required to be converted into Equity so that the burden of repayment must be deferred instead dividend can be distributed. The Resolution Plan submitted by the Promoters is to be accepted because a Certificate is on record that the Promoters are not wilful defaulter hence their proposal is acceptable as per the latest Amendment [The I B Code (Amendment) Act, 2017 (No. 8 of 2018)) dated 18th January, 2018 wherein S, 29-A is inserted and prescribed that, a person shall not be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olution Plan was considered in a Meeting of Committee of Creditors held on 05.10.2017 and stated to be approved by voting share of 96.54% in terms of section 30(4) of The Code, read with Regulations 39(3) of Regulations 2016. The Committee of Creditors envisaged restructuring of Unsecured Term Debt to be paid up to 15% to the Unsecured Creditors by fixing cut-off date as well. For the sake of completeness, we have noted that there was a reference of Old Scheme sanctioned by BIFR. The present plan submitted before COC contains infusion of fresh funds, stated to be by the existing Promoters of the Petitioner/ Corporate Debtor. 5. In consonance with the I B Code a Meeting of Committee of Creditors was held on dated 05.10.2017 and a Resolution Plan was placed for approval, In terms of section 30(4), the Committee of Creditors have approved the Resolution Plan by a vote of 96.45% of Voting Shares of the Financial Creditors. 6. A Certificate in consonance with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulation 2016 certifying that the Resolution Plan shall meet the requirement of The Code and that the Resolution Plan is Approv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solution plan. - (1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan. (2) (3) emphasis supplied ) 11. The Procedure as prescribed under The Code is that a Resolution Plan is required to be submitted by a Resolution Application U/s 30 of The Code. On approval, the Resolution Professional is to submit U/s 30(6) the Resolution Plan, as approved by the Committee of Creditors, to the AA. Thereafter, u/s 31, as reproduced supra is to examine the contents of the Resolution Piano The mandate of this Section is satisfied that the Resolution Plan as approved by the Committee of Creditors meets the requirement as referred to in section 30(2), shall by an Order, approve the Resolution Plan. So the prerequisite is that recording of satisfaction by AA is a condition precedent. A satisfaction is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ency that under the Heading Assumption as per Clause it is noted that, quote New Promoters Deposit to the extent ofe2 crores to be allowed to be convened into Equity Shares by Financial Year 2022-23. However, under the Head Conclusion as per Clause V under the Head Promoters' Loan it is proposed, quote the fresh Unsecured Loans of ₹ 350 lakhs to be infused by the Promoters under the Resolution Plan shall be repayable during 2021-23. In addition to these two observations, interestingly and in contrast, an observation is at para 13 under the Head What will be the Promoters' contribution the proposal is that quote The promoters propose to invest another amount of ₹ 349.51 lacs by way of interest-bearing deposit @ 12% repayable by 2023 The promoters will ensure the regular payment of instalments and interest to the bank before payment of interest to the promoter on proposed investment of ₹ 349.51 lacs Indeed, it is a strange situation that at three places three different Plans have been proposed in respect of the contribution of the Promoters. We are not in agreement of the two propositions and accept only one. We are of the view that considerin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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