9911796707
TMI Blog2020 (10) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Adjudicating Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan as approved by the requisite percent of voting share of financial creditors. Even in that enquiry, the grounds on which the Adjudicating Authority can reject the Resolution Plan is in reference to matters specified in Section 30(2) when the Resolution Plan does not conform to the stated requirements. Application allowed. - Hon ble Janab Mohammed Ajmal, Member (Judicial) And Hon ble Shri V. Nallasenapathy, Member (Technical) For the Applicant : Kinshuk Chatterjee with Akshay Goel Advocates and Bhuvnesh Maheshwari (RP) For the CoC : Deep Roy and Nupur Malde, Advocates For the Resolution Applicant : Mr Vijay Nirani (Representative) ORDER Per : Janab Mohammed Ajmal, Member ( Judicial ) This is an Application under Section 30 (6) of the Insolvency and Bankruptcy Code, 2016 (the Code) by the Resolution Professional seeking approval of the Resolution Plan submitted by the Resolution Applicant Shri Sai Priya Sugars Limited. 2. The facts leading to the Application are as under. Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by this Bench by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.25 Workmen s Dues 0.20 To pay INR 0.02 Crores towards workmen s dues 0.02 Wages and dues of Employees (other than workmen) 0.30 To pay INR 0.03 Crores towards Employees dues 0.03 Related Party Unsecured Financial Creditors 4.36 No payment towards the dues of related parties of the Corporate Debtor. NIL Operational Creditors (OC) 31.04 To pay INR 4.80 Crores (as goodwill measure) to the Operational Creditors of the Corporate Debtor, with the assumption that the liquidation value due to such creditors is NIL. The distribution of the said amount is as follows: * Cane farmers INR 3.76 crores * Statutory Authority (GST) INR 0.93 crores * Other OCs INR 0.11 Crores 4.80 TOTAL 60.00 C. Management of the Corporate Debtor: The Resolution Applicant proposes to appoint Mr. Murugesh R Nirani and Mr. Rachappa V Karehonnas as the Directors of the Corporate Debtor after the approval of the Resolution Plan. It proposes to appoint following persons as the Members of the Monitoring Committee for implementation of the Resolution Plan: Mr. Anand Sonbhadra (Monitoring Professional) as Chairman, Mr. Ajeyenulu Chelukuri (Representative of Syndicate Bank), Mr. Srinath Narsimhan (Representative of Edelwei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stated that they will consider the request of the Resolution Applicant herein for the sanction of the financial assistance of ₹ 120 Crores, subject to terms and conditions applicable for such loans, if the Resolution Plan submitted by Shri Sai Priya Sugars Limited is finalised in its favour. 8. The Resolution Applicant proposes to appoint Directors to the Board of the Director as stated above in terms of Section 30(2)(c). The Plan also provides for implementation of provision of the Resolution Plan as stated above as per Section 30(2)(d). The Resolution Applicant has given a declaration that the Resolution Plan does not contravene any provisions of the law for the time being in force. The Resolution Plan is in compliance of the Regulation 38 of the Regulations in terms of Section 30(2)(f) as under: a) the payment to Operational Creditor will be made in priority over Financial Creditor (Regulation 38(1)(a). b) Payment to dissenting Financial Creditor will be paid in priority over the other Financial Creditors (Regulation 38(1)(b)). c) Declaration by the Resolution Applicant that the Resolution Plan has considered the interest of all the stakeholders of the Corporate Debtor, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Resolution Plan has been approved by the CoC in its meeting held on 26.02.2020 with 95.21% votes. 13. In K Sashidhar v. Indian Overseas Bank Others (in Civil Appeal No. 10673/2018 decided on 05.02.2019) the Hon ble Apex Court held that if the CoC had approved the Resolution Plan by requisite percent of voting share, then as per section 30(6) of the Code, it is imperative for the Resolution Professional to submit the same to the Adjudicating Authority (NCLT). On receipt of such a proposal, the Adjudicating Authority is required to satisfy itself that the Resolution Plan as approved by CoC meets the requirements specified in Section 30(2). The Hon ble Court observed that the role of the NCLT is no more and no less . The Hon ble Court further held that the discretion of the Adjudicating Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan as approved by the requisite percent of voting share of financial creditors. Even in that enquiry, the grounds on which the Adjudicating Authority can reject the Resolution Plan is in reference to matters specified in Section 30(2) when the Resolution Plan does not conform to the stated requirements. 14. In CoC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We trust that the authorities concerned will do the needful in such a way that the Corporate Debtor is granted with required permits/licenses/electricity connection etc., when applied for, before the commencement of the upcoming sugarcane crushing season. iii. The Memorandum of Association (MoA) and Articles of Association (AoA) shall accordingly be amended and filed with the Registrar of Companies (RoC), concerned for information and record. The Resolution Applicant, for effective implementation of the Plan, shall obtain all necessary approvals, under any law for the time being in force, within such period as may be prescribed. iv. Henceforth, no creditors of the erstwhile Corporate Debtor can claim anything other than the liabilities referred to in Para 4.B and Para 9 supra. v. The moratorium under Section 14 of the Code shall cease to have effect from this date. vi. The Applicant and the Monitoring Committee shall supervise the implementation of the Resolution Plan and the Applicant shall file status of its implementation before this Authority from time to time, preferably every quarter. vii. The Applicant shall forward all records relating to the conduct of the CIRP and the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
