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TMI Blog2020 (2) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... amended Section 30(2)(b)(ii), the distribution is to be made in the manner as prescribed under Section 53(1) giving preference to the secured creditor. However, even at that stage no discrimination can be made between two similarly situated 'secured creditor'. If the 'Financial Creditor' do not accept the 'feasibility' and 'viability' of the plan and holds that the 'resolution plan' is discriminatory or against the provision of law, it has right to dissent during the voting and can be treated as a 'dissenting financial creditor' - a 'secured creditor' cannot claim preference over the other 'secured creditor' at the stage of distribution out of the 'resolution plan on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned order dated 24th July, 2019 taking into consideration the relevant facts and that the plan is in accordance with Section 30(2) approved the 'Resolution Plan'. 2. Learned counsel for the Appellant submitted that the 'Resolution Plan' submitted by 'Patanjali Ayurveda Limited' envisaged the payment of ₹ 4134 Crores to the 'Financial Creditors' including the Appellant against admitted claim of ₹ 8398 Crores approximately. The Appellant extended financial debt to the 'Corporate Debtor' amounting to USD50 Million (₹ 243 Crores approximately), secured as a sole first charge on fixed assets of the 'Corporate Debtor' at Baran, Guna, Daloda, Gadarwara, Mumbai and Kandla. The cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be specified by the Board which shall not be less than- (i) the amount to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or (ii) the amount that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of priority in sub-section (1) of section 53, Whichever is higher, and provides for the payment of debts of financial creditors, who do not vote in favour of the resolution plan, in such manner as may be specified by the Board, which shall not be less than the amount to be paid to such creditors in accordance with sub-section (1) of section 53 in the event of a liquidation of the corporate d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll also apply to the corporate insolvency resolution process of the corporate debtor- (i) where a resolution plan has not been approved or rejected by the Adjudicating Authority; (ii) where an appeal has been preferred under section 61 or section 62 or such an appeal is not time barred under any provision of law for the time being in force; or (iii) where a legal proceeding has been initiated in any court against the decision of the Adjudicating Authority in respect of a resolution plan; 6. From the aforesaid explanation, it is clear that the amendment to Section 30(2)(b) is applicable only in cases - (a) where a resolution plan has not been approved or rejected by the Adjudicating Authority; (b) where an appeal has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prove a resolution plan by a vote of not less than [sixty-six] per cent. of voting share of the financial creditors, after considering its feasibility and viability, [the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53, including the priority and value of the security interest of a secured creditor] and such other requirements as may be specified by the Board: Provided that the committee of creditors shall not approve a resolution plan, submitted before the commencement of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 (Ord. 7 of 2017), where the resolution applicant is ineligible under section 29-A and may require the resol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istribution cannot be alleged to be in violation of the amended sub-section (4) of Section 30. As per amended Section 30(2)(b)(ii), the distribution is to be made in the manner as prescribed under Section 53(1) giving preference to the secured creditor. However, even at that stage no discrimination can be made between two similarly situated 'secured creditor'. 10. If the 'Financial Creditor' do not accept the 'feasibility' and 'viability' of the plan and holds that the 'resolution plan' is discriminatory or against the provision of law, it has right to dissent during the voting and can be treated as a 'dissenting financial creditor'. However, no 'Financial Creditor' including a & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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