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TMI Blog2020 (7) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... Applicant to monitor the progress and implementation of the plan at regular intervals, till the creditors are paid their dues as envisaged under the Resolution Plan. Cost or expenses of the monitoring committee including fees of Resolution Professional post approval of Resolution Plan by the NCLT shall be borne by the successful Resolution Applicant with a capping of ₹ 2 lakh only - the Adjudicating Authority records its satisfaction for granting approval to the final Resolution Plan. It also believes that it would be in the best interest of the FCS, its employees, OC, and all stake holders to accept the final Resolution Plan. Resolution Plan is approved - Approved Final Resolution Plan shall come into force with immediate effect - moratorium Order passed under Section 14 shall cease to have effect. - IA No. 03/2020 CP No. (IB)/10/GB/2019 - - - Dated:- 5-2-2020 - Hon'ble Mr.Hari Venkata Subba Rao, Member (J) For the Applicant/ Corporate Debtor : Mr. Sanjay Kumar Agarwal, RP Mr.Subodh Kr. Agarwal,CA For the Financial creditor : None ORDER 1. The instant application IA No. 03 of 2020 is filed by the Resolution Professional of M/S Langlai Tea a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2019 to 16.08.2019. The date was further extended from 16.08.2019 to 2308.2019 by the COC in the 6th COC meeting held on 17.08.2019. 5. Pursuant to such public announcement, the Resolution Professional received Expression of Interest (EOI) from the following 3 prospective Resolution Applicants. I. M/S Terai Tea Company Limited Il. M/S The Ananda Bag Tea Co. Ltd. Ill. M/S Rangkoman Warisa Accordingly the Resolution Professional issued the provisional list of the eligible prospective Resolution Applicants on 26th August, 2019 containing all the Resolution Applicants. The last date for submission of objection to the provisional list was 31st August, 2019. As the RP has not received any objection to the inclusion or exclusion of any prospective applicant in the provisional list, the RP issued final list Of prospective Resolution Applicant to the members of committee of creditors on 07.09.2019. The last date for submission of Resolution Plan was fixed on 30.09.2019. However the last date for submission of the Resolution Plan was extended from 30.09.2019 to 15.10.2019 in the 7th COC meeting held on 25th September 2019. 6. Even after extending the last date for submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the above, the Resolution Applicant shall also make additional payment towards their outstanding dues against land revenue which has been estimated by them as ₹ 53.59 Lakhs. 9. Discussion on Resolution Plan: The plan was discussed in detail by the committee. COC members mentioned that payment to financial creditors was proposed as ₹ 1.20 crore which is much below the average liquidation value of ₹ 2.45 Crore. However, COC members were of the view that in case the Resolution Plan is approved, financial creditors will get ₹ 1.20 crores whereas if the corporate debtor goes into liquidation, realization to the financial creditors will be lower than the amount proposed in the Resolution Plan. Considering that in liquidation, even if the liquidator realizes an amount equivalent to the liquidation value, balance available for distribution to financial creditors will be only 0.51 crores which is much lower than the amount of ₹ 1.20 Crores being received by them in CIRP. Estimated realization for the financial creditors in Liquidation is determined by the COC members as under: Estimated Realization (Average Liquidation Value) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Debtor have been safeguarded In the Resolution Plan. It was noted that the Resolution Plan does not contravene any pf the provisions of the law, The committee also noted that the approved Resolution Plan provided for the terms and implementation schedule of the Resolution Plan, the management and control of the business of the corporate debtor during the term Of Resolution Plan and had adequate means Of supervision of the implementation of the Resolution Plan. The COC also noted that the approved Resolution Plan contained details Of the Resolution Applicant and Other connected persons to enable it to access the credibility of such applicant and other connected parties. 11. The COC applying its COMMERCIAL WISDOM based upon the facts and figures and exercising its prudence by having sufficient knowledge of the subject decided to consider the Resolution Plan submitted by M/S Sabrang Steel Private Limited and the following resolution was put to vote: RESOLVED THAT the Resolution Plan submitted by the Resolution Applicant- M/S Sabrang Steel Private Ltd in respect Of the Corporate Debtor, M/S Langlai Tea Industries Limited placed before the COC meeting be and is hereby approve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd regulations made there. Notwithstanding anything to the contrary contained in this Resolution Plan or any other documents Including any definitive documents, the Resolution Applicant [together with the co-applicants] agrees and confirms that there are no conditions, assumptions and/or qualifications for effectiveness Of the Resolution Plan by the Resolution Applicant and co-applicants]. Whether before approval by the Adjudicating Authority or thereafter until the [effective date] as per the current terms of resolution plan being submitted. The Resolution applicant [and the co-applicant] hereby jointly and severally, and unconditionally and irrevocably agree and undertake to implement and give effect to the transactions contemplated in the Resolution Plan immediately upon completion of the Condition Precedent. We understand that the Resolution Professional have further right to renegotiate the contents of this Resolution Plan and the decision of RP and / or the COC in the selection of the Resolution Applicant and / or the successful Resolution Applicant shall be final and binding onus. 15. In view of the foregoing, and other details mentioned in the Resolution Plan, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final Resolution Plan. It also believes that it would be in the best interest of the FCS, its employees, OC, and all stake holders to accept the final Resolution Plan. 18. It is seen that the Resolution Plan seeks several Dispensation, Concession and Waivers. In this regard, we are of the view that approval of the Resolution Plan does not mean automatic waiver or abetment Of legal proceedings, if any, which are pending by or against the Company/Corporate Debtor as those are the subject matter of the concerned Competent Authorities having their proper/own jurisdiction to pass any appropriate order as the case may be. The Resolution Applicants on approval of the plan may approach those Competent Authorities/ Courts/ Legal Forums/ Offices- Govt. or Semi Govt. / State or Central Govt. for appropriate relief(s) sought for in. 19. The Adjudicating Authority therefore orders as under: (a) The Final Resolution Plan as submitted by M/S Sabrang Steel Pvt. Ltd which has been approved by the COC in its 11th meeting dated 20.01.2020 by a vote Of 100% is hereby approved. (b) The Approved Final Resolution Plan shall come into force with immediate effect. (c) The moratorium Order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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