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TMI Blog2019 (10) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... olution Plan that has been approved by the COC, wherein the Applicant Bank voted in favour of the Resolution Plan. Therefore, it appears that the Applicant Bank is estopped from raising such an objection which has already been raised before the Committee of Creditors and the Committee of Creditors deliberated on those objections and upon certain clarifications, the said pattern was approved with majority of vote share. Therefore, the majority decision of the Financial Creditors cannot be disturbed by raising the very same objection before us. The objections raised by the applicant deserve no consideration and accordingly dismissed. Whether the Resolution Plan under consideration is liable to be approved? - HELD THAT:- The Resolution Plan provides the requirements to be meted out under Regulation 32(2). It provides the terms of the Plan and its implementation schedule, the management and control of the business of the Corporate Debtor during its terms, adequate means for supervising its implementation. A look at the Resolution Plan also shows that the Resolution Applicant has the capability to implement the Resolution Plan. The performance security also seen brought in. So a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Code and Regulations and conducted altogether 9 meetings of the Members of the Committee of Creditors and ultimately succeeded in getting the approval for a Resolution Plan submitted by Almas Global Opportunity Fund SPC (in short ALMIS) by a vote share of 80.18%. It is that Resolution Plan comes up for approval before us. 4. As usual, three Objectors come forward objecting the approval of the Resolution Plan. So, first of all, let us see whether the objections are sufficient enough to reject the plan or requires modifications as prayed for. 5. The Bank of Baroda, a Financial Creditor, who is a Member of Committee of Creditors and voted in favour of the approval of the Resolution Plan by the Committee of Creditors, filed CA(IB) No. 1175/KB/2019, praying for issuing directions to the Applicant/Bank of Baroda with regard to payment, pursuant to the invocation of Bank Guarantee by the beneficiary, M/s. Power Grid Corporation of India Limited. It is submitted by the Ld. Counsel, appearing for the Bank of Baroda that during the CIRP process, M/s. Power Grid Corporation of India Limited, invoked the Bank Guarantee issued in their favour by Bank of Baroda, on behalf of the Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Debtor on the ground that the said sum was adjusted by the Applicant in violation of the declaration of the moratorium in the case in hand. The CA(IB) No. 947/KB/2019 is an Application hotly contested by the Applicant, Canara Bank. It is after an elaborate hearing on the side of the Applicant Bank and the Resolution Professional, we are inclined to pass an order in favour of the Corporate Debtor, directing the Applicant Bank to pay a sum of ₹ 1,96,12,749/- to the Corporate Debtor, along with interest thereon. It is that order which is requested to be recalled. It appears to us that the Applicant has got the right of appeal to challenge the Order passed on merits and the objections raised in the Application are the similar objections as had been raised in CA(IB) No. 947/KB/2019 and therefore, we do not find any justifiable reason to recall the Order dated 06-09-2019. At this juncture, Ld. Counsel for the Applicant Bank referred to us an Order dated 30-09-2019, passed by the Hon'ble NCLAT in CA(AT) (Insol.) No. 190 of 2019, wherein the Hon'ble Appellate Tribunal issued directions to the Appellant, Punjab National Bank, to deposit the amount with the Resolution Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eliberated on the proposed distribution pattern. Some of the members of the committee including Union Bank of India, raised objection that the distribution is not equitable because of proposed additional comfort provided to those members who have un-invoked bank guarantees amount to INR 763.67 Crore as on 24th September, 2019. One of the committee members suggested that for equitable distribution amongst the members there should be an inter se agreement between the consortium lenders where all the uninvoked bank guarantees will be distributed amongst the members equally. SBI explained elaborately that the un-invoked BG's are contingent in nature and further stated that in case of invocation of BG post approval of resolution plan the banks are liable to pay to the beneficiaries immediately for which they are getting only debentures carrying a coupon @0.01% per annum which are redeemable in cash after seven years from the date of issue. Therefore, SBI felt that there is no additional comfort on such kind of offering by the prospective resolution applicant on the un-invoked BGs. RP Also explained that the resolution amount indicated by prospective resolution applicant against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant deserve no consideration and accordingly the CA(IB) No. 1327/KB/2019, is liable to be dismissed. 12. Having found that none of the Objections in regard to the approval of the Resolution Plan is sustainable under law, then let us see whether the Resolution Plan under consideration is liable to be approved. 13. The Ld. Senior Counsel, appearing for the Resolution Professional, submits that the Resolution Plan is complete, that it is approved by the Committee of Creditors by a vote share of 80.18% and is not in contravention of any of the provisions of the law, for the time being in force, and it is in conformity with Section 30(2) (e) of the Code and that the Plan conforms to such other requirements as may be specified by the Board and in confirmation with Section 30(2) (f) of the Code. The Resolution Plan is feasible and viable as per the majority decision of the Committee of Creditors. Provisions for its effective implementation has been incorporated in conformity with Section 31(1) of the Code. So also, the Resolution Plan identifies specific sources of funds that will be used to pay the Insolvency Process Cost, liquidation value due to the Operational Creditor, and liqu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the object of the Code i.e. maximizes the value of assets and balances the interests of all the stakeholders. All the questions answerable by us as per the guideline in approving a resolution plan as laid down in the above cited decision being answered in affirmative, we have no other alternative other than to approve the Resolution Plan under consideration. Accordingly, the Resolution Plan under consideration deserves to be approved, upon the following among orders: ORDER i) The Resolution Plan of EMC Ltd., which is approved by the CoC with 80.18% voting share, is hereby approved under provisions of sub-section (1) of Section 31 of the Insolvency and Bankruptcy Code, 2016, which shall be binding on the Corporate Debtor, EMC Ltd., its employees, members, creditors, guarantors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such authorities to whom statutory dues are owed and other stakeholders involved in the Resolution Plan;. ii) The moratorium order passed under Section 14 shall cease to have effect. iii) The Resolution Professional shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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