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TMI Blog2020 (9) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... t has to ensure compliance under all applicable laws for the time being in force. This does not mean that the Adjudicating Authority has changed the terms of the Resolution Plan. It is pertinent to mention that after approval of the Resolution Plan, in every case, the Successful Resolution Applicant has to ensure compliance under applicable laws. Thus, it is clear that successful resolution applicant cannot suddenly be faced with undecided claims after the resolution plan submitted by him has been accepted. All claims must be submitted to and decided by the resolution professional, so that a prospective Resolution Applicant knows exactly, what has to be paid, in order that it may then take over and run the business of the Corporate Debtor - The Adjudicating Authority has neither varied the terms of the approved Resolution Plan, nor denied any concession. In fact, the Adjudicating Authority has not allowed general waiver from the statutory liabilities and has specified that the Resolution Applicant may apply for such reliefs and concessions to the relevant Authorities who may consider the same as per applicable laws. Instant Appeal against the Approved Resolution Plan is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Adjudicating Authority vide the impugned order has failed to grant certain reliefs and concessions as provided in the approved Resolution Plan which is permissible and also necessary for successful implementation of the Resolution Plan by the Appellants herein failing which the approved Resolution Plan shall become commercially unviable. It is submitted that the Adjudicating Authority exercises limited jurisdiction while approving a Resolution Planin terms of Section 31 of I B Code and the observations made in para 23, 24 and 25 of the impugned order dated 02nd July 2020 are contrary to the scope of Section 31 of I B Code. Appellants further contend that the relief and concessions sought by the Appellantsare germane for the successful implementation of the approved Resolution Plan. The impugned observations modify the Resolution Plan regarding the reliefs and concessions sought under the said plan. This Appeal is filed under Section 61(3) of the Insolvency Bankruptcy Code, 2016, which is as under: 61(3) An appeal against an order approving a resolution plan under Section 31 may be filed on the following grounds, namely- (i) the approved resolution plan is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it as per relevant applicable laws. Thus, it is clear that the Adjudicating Authority has not given a general exemption regarding all reliefs and concessions sought in the Resolution Plan, but at the same time, it has clarified that the Resolution Applicant may apply for reliefs and concessions to the relevant Authorities who may consider the same as per applicable laws. It is further observed by the Adjudicating Authority that the Resolution Applicant on taking control of the Corporate Debtor shall ensure compliance under all applicable laws for the time being in force. It is also observed that the Resolution Applicant shall take over the Corporate Debtor as per the terms of the approved Resolution Plan. It means that terms of the approved Resolution Plan has been approved subject to compliance of applicable laws for the time being in force. Thus, it is clear that by observation madein para 24 only, it has been emphasised by the Adjudicating Authority that the Resolution Applicant has to ensure compliance under all applicable laws for the time being in force. This does not mean that the Adjudicating Authority has changed the terms of the Resolution Plan. It is pertinent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Second, there has been material irregularity in exercise of powers by the resolution professional during the corporate insolvency resolution period. Third, the debts owed to operational creditors have not been provided for in the resolution plan in the prescribed manner. Fourth, the insolvency resolution plan costs have not been provided for repayment in priority to all other debts. Fifth, the resolution plan does not comply with any other criteria specified by the Board. Significantly, the matters or grounds - be it under Section 30(2) or under Section 61(3) of the I B Code - are regarding testing the validity of the approved resolution plan by the CoC; and not for approving the resolution plan which has been disapproved or deemed to have been rejected by the CoC in exercise of its business decision. 45. Indubitably, the inquiry in such an appeal would be limited to the power exercisable by the resolution professional under Section 30(2) of the I B Code or, at best, by the adjudicating authority (NCLT) under Section 31(2) read with 31(1) of the I B Code. No other inquiry would be permissible. Further, the jurisdiction bestowed upon the appellate authority (NCLAT) is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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