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TMI Blog2020 (3) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ( CIRP Regulations ) and per the judgment of hon'ble apex court in ArcelorMittal India P. Ltd. v. Satish Kumar Gupta [ 2018 (10) TMI 312 - SUPREME COURT ] the Adjudicating Authority has no jurisdiction to challenge the commercial wisdom of CoC to approve or reject the resolution plan . Further, the e-mail sent by the resolution applicant states that the necessary changes shall be made to the resolution plan and the revised resolution plan shall be submitted shortly which has not taken place and it is admitted by the resolution applicant that merely a revised offer and not a resolution plan to be considered. It is also to be considered that by all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution applicant and CoC and the applicant modified the resolution plan as per the requirement of the CoC/ resolution professional. Further, resolution plan was revised a couple of times and an amended resolution plan with revised proposal on July 25, 2019 was made where the offer of ₹ 395 crores was increased to ₹ 401 crores which was done within the continuance of the CIRP period but the resolution professional failed to conduct the CoC meeting to discuss revised commercial offer even when certain lenders expressed willingness to consider it. 3. It is further stated by the applicant that the intendment of the order dated May 21, 2019 passed by this hon'ble Tribunal is clear inasmuch as the CIRP was continuing until f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the resolution applicant were informed of such rejection of resolution plan on July 24, 2019 through which the process for consideration of the resolution plan as mentioned came to an end and is no longer valid for any review/reconsideration by the CoC. 6. It is also stated that the e-mail dated July 25, 2019 of the resolution applicant is merely a revised commercial offer on the rejected plan and not another resolution plan submitted by the resolution applicant. Learned counsel for the RP also submitted that the resolution applicant also agrees that the revised offer is not a resolution plan and has accordingly prayed that its offer be considered by the CoC. 7. It is further argued by learned counsel that several financial creditors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder regulation 18 of the CIRP Regulations, if members having thirty-three per cent. vote requisition a CoC meeting, the RP is bound to convene a CoC meeting. However, in the present case members holding thirty-three per cent. of the voting interest did not request for convening of the CoC meeting. In fact, one CoC member categorically mentioned that CIRP is a time bound process and there cannot be endless negotiation and that the resolution applicant should be told that RFRP terms were not fulfilled and the plans submitted were rejected and hence no further proposals need to be considered. It is very clear from the same that the CoC as a collective body does not wish to pursue the commercial offer made by the resolution applicant. 9. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tential resolution applicants. This would take at least 75 days' time as per model timelines provided in the CIRP Regulations. At present, such time is not available in the JVL Agro CIRP. Learned counsel took reliance on view observed by the hon'ble Supreme Court in ArcelorMittal India P. Ltd. v. Satish Kumar Gupta [2018] 211 Comp Cas 369, 462 (SC) : Take the next stage under section 30. A resolution professional has presented a resolution plan to the committee of creditors for its approval, but the committee of creditors does not approve such plan after considering its feasibility and viability, as the requisite vote of not less than 66 per cent. of the voting share of the financial creditors is not obtained. As has been men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pprove or reject the resolution plan . ● Further, the e-mail sent by the resolution applicant states that the necessary changes shall be made to the resolution plan and the revised resolution plan shall be submitted shortly which has not taken place and it is admitted by the resolution applicant that merely a revised offer and not a resolution plan to be considered. ● It is observed that the standalone commercial offer cannot be considered under the provisions of this Code as the resolution plan as resolution plan under the Code is required to have certain mandatory contents, which are provided in the Code read with the CIRP Regulations. The resolution professional is required to conduct due diligence regarding complianc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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