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TMI Blog2019 (12) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... oval required under any law for the time being in force within one year from the date of this order or within such period as provided for in such law, whichever is later. The resolution plan is approved, which shall be binding on the Corporate Debtor and its employees, members, creditors, guarantors, Resolution Applicant and other stakeholders involved in the resolution plan. This Bench hereby discharges the RP from duties of the RP by submitting all the records maintained by him to the Insolvency and Bankruptcy Board of India as provided under the Insolvency and Bankruptcy Code, 2016 and the regulations thereunder - Application allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... Code. The liquidation value of the corporate debtor as arrived at by the registered valuers appointed by RP and adopted in the information memorandum is ₹ 71,52,272.50 Lakhs. 7. Followings table sets out the provisions made for repayment of dues in the Resolution Plan in comparison to the Liquidation Value and dues: S.No Category Treatment 1. CIRP Costs As per actuals. 2. Secured Financial Creditors NIL (no claims filed or admitted) 3. Unsecured Financial Creditors The amount remaining from the total cash infusion of ₹ 10 Crores after deduction of CIRP Costs, payments to Operational Creditors and Government Dues, shall be distributed amongst the unsecured financial creditors on pro-rate basis. 4. Operational Creditors (other than Employees, Workmen, and Government Dues) 100% of admitted claims 5. Other Creditors NIL (no claims filed or admitted) 6. Employees and Workmen Dues NIL (no claims filed or admitted) 7. Government Authority Dues ₹ 5,00,000/- to be paid against liabilities of ₹ 5,51,38,835/-. No claims were filed, the amount of liability determined by Applicant on the basis of records of the Corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resolution Plan, where the contract/agreement/understanding/proceedings/actions/notice etc. is not specifically identified or is for future and contingent liability, is at this moment rejected. 13. The Resolution Applicant in its resolution plan, has dealt with interests of all stakeholders of the Corporate Debtor, including the Financial Creditors, the Operational Creditors and the CIRP cost. 14. Section 30 of the Code provides as below: "(1) A resolution applicant may submit a resolution plan to the resolution professional prepared on the basis of the information memorandum. (2) The resolution professional shall examine each resolution plan received by him to confirm that each resolution plan- (a) provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the repayment of other debts of the corporate debtor; (b) provides for the repayment of the debts of operational creditors in such manner as may be specified by the Board which shall not be less than the amount to be paid to the operational creditors in the event of a liquidation of the corporate debtor under section 53; (c) provides for the management of the affa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) The amount due to the operational creditors under a resolution plan shall be given priority in payment over financial creditors. (1A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor. (2) A resolution plan shall provide: (a) the term of the plan and its implementation schedule; (b) the management and control of the business of the corporate debtor during its term; and (c) adequate means for supervising its implementation. (3) A resolution plan shall demonstrate that - (a) it addresses the cause of default; (b) it is feasible and viable; (c) it has provisions for its effective implementation; (d) it has provisions for approvals required and the timeline for the same; and (e) the resolution applicant has the capability to implement the resolution plan." "Regulation 39 - Approval of resolution plan: (1) A prospective resolution applicant in the final list may submit resolution plan or plans prepared in accordance with the Code and these regulations to the resolution professional electronically within the time giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be initiated against the interim resolution professional or the resolution professional, as the case may be, for any actions of the corporate debtor, prior to the insolvency commencement date. (10) A person in charge of the management or control of the business and operations of the corporate debtor after a resolution plan is approved by the Adjudicating Authority, may make an application to the Adjudicating Authority for an order seeking the assistance of the local district administration in implementing the terms of a resolution plan." 17. As discussed supra by virtue of mandatory contents of resolution plan, the same is in accordance with Section 30 and 31 of the Code, and also complies with the requirement of the Regulations 38 and 39 of CIRP Regulations. 18. The Hon'ble Supreme Court in the case of "K. Sashidhar vs. Indian Overseas Bank" (2019 SCC OnLine SC 257) at para 49 of the Judgement held as below: "49. The argument, though attractive at the first blush, but if accepted, would require us to re-write the provisions of the I&B Code. It would also result in doing violence to the legislative intent of having consciously not stipulated that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . If any relief concerning any identified liability of the Corporate Debtor is required, then that needs to be specifically mentioned and sought for in the Resolution Plan. This bench cannot allow any general power to any resolution applicant absolving him of liability of the corporate debtor company without knowing about the liability against which such exemption is sought. In other words, reliefs/exemptions from only existing liabilities which are specifically identified can be sought and allowed in the Resolution Plan. 23. On perusal of the Resolution Plan, we find that the resolution plan has necessary provisions for its effective implementation. 24. The resolution applicant shall obtain the necessary approval required under any law for the time being in force within one year from the date of this order or within such period as provided for in such law, whichever is later. 25. Given the above observations, we approve the resolution plan, which shall be binding on the Corporate Debtor and its employees, members, creditors, guarantors, Resolution Applicant and other stakeholders involved in the resolution plan. 26. In view of the approval of the Resolution Plan as sought by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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