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TMI Blog2019 (10) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Arun Gupta and Mr. Arik Banerjee, Advocates for R.P. JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. In the 'Corporate Insolvency Resolution Process' against 'Sunil Ispat & Power Limited'- ('Corporate Debtor'), the Appellant- 'M/s. Maruti Ferrous Private Limited' (hereinafter referred to as "Successful Resolution Applicant") submitted 'Resolution Plan' which was approved by the 'Committee of Creditors' with 100% voting shares. 2. By impugned order dated 8th February, 2019, as corrected by order dated 11th February, 2019, the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata, approved the plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) with following observations: " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. & Anr. vs. Union of India & Ors.─ 2019 SCC OnLine SC 73", wherein the Hon'ble Supreme Court held: "71. The NCLAT has, while looking into viability and feasibility of resolution plans that are approved by the committee of creditors, always gone into whether operational creditors are given roughly the same treatment as financial creditors, and if they are not, such plans are either rejected or modified so that the operational creditors' rights are safeguarded. It may be seen that a resolution plan cannot pass muster under Section 30(2)(b) read with Section 31 unless a minimum payment is made to operational creditors, being not less than liquidation value. Further, on 05.10.2018, Regulation 38 has been amended. Prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wise do not contribute in operation of the Company but are entitled under the existing laws. 8. In the aforesaid background to provide same treatment to the 'Financial Creditors' and the 'Operational Creditors', we asked the Appellant to propose modified 'Resolution Plan', which has been submitted. 9. In terms of the approved 'Resolution Plan' by the 'Committee of Creditors', as held in its meeting dated 10th January, 2019, the distribution was as follows: S. No. Particulars Outstanding as per Claim Form (Dues as on 31.07.2018) Payment Proposed Total Amount Percentage of Total Claim COST TO BE INCURRED 1. Insolvency Resolution Process Cost N.A. 3,500,000 100% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TOTAL 3,587,232,819 618,500,000 Means of Finance Total Amt Rs. in Cr. Fresh Equity to be infused by the Resolution Applicant 10.00 Unsecured Loans by Applicant/Associates 20.85 TERM LOAN (not from existing secured financial creditors of company) 15.00 Cash Credit Limit (not from existing secured financial creditors of company) 16.00 TOTAL (Rs. In crores) 61.85 10. After our observation, the Appellant submitted modified 'Resolution Plan' showing the distribution without changing the other factors relating to viability and feasibility, which is as follows: S. No. Particulars Outstanding as per Claim Form (Dues as on 31.07.2018) Payment Proposed Total Amount Percentage of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under the normal course of business a. Up gradation and Modernization of Unit N.A 115,000,000 N.A b. Add: Working Capital N.A 195,000,000 TOTAL 3,587,232,819 637,345,960 Means of Finance Total Amt Rs. in Cr. Fresh Equity to be infused by the Resolution Applicant 10.00 Unsecured Loans by Applicant! Associates 22.73 TERM LOAN (not from existing secured financial creditors of company) 15.00 Cash Credit Limit (not from existing secured financial creditors of company) 16.00 TOTAL (Rs. In crores) 63.73 11. As we find that the proposed modified distribution of the 'Resolution Plan' is in accordance with la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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