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TMI Blog2020 (12) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the Code, intention of the Legislature, that the priority is to be given to the resolution than liquidation in the larger interests of the public, workmen, stakeholders and the other employees of the corporate debtors in the interest of justice and in order to achieve the object of the Code and liquidation of a company can be only as a last resort, wherein, all efforts for brining Resolution Plan were failed or it cannot be found workable in the larger public interest. Hence, now the approval of Resolution Plan by this Adjudicating Authority is rule as per the apex court's decision in the matter of K. Sashidhar Vs. Indian Overseas Bank Ors. - On the backdrop of the decision taken by Hon'ble Supreme Court, it is pertinent to note herein that in the instant case, there is no interference with commercial wisdom of CoC with regard to the implementation of the Resolution Plan. The Adjudicating Authority, is of the considered opinion and also being satisfied that the Resolution Plan as approved by the Committee of Creditors (CoC) meets the requirements as referred to under section 30(2) of the Code - Application allowed. - Manorama Kumari, Member (J) And Chocklingram Thir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Expression of Interest (hereinafter referred as EoI ) on 15.07.2019 and the same was published in two newspapers in Ahmedabad Edition, namely- Business Standard (English) and Divya Bhaskar (Gujarati). The said fact was informed by RP in 3rd CoC meeting held on 20.09.2019. In view of the said EoI, RP received 4 EoI from the following- i. Plastene India Limited ii. Prudent ARC Ltd. iii. Amrut Polymers iv. Rare Assets Reconstruction Ltd. Further, RP informed that out of 4, only 2 Resolution Plans was received from Plastene India Limited and Amrut Polymers. 2.6 In the 4th CoC meeting held on 07.10.2019, RP discussed about the Resolution Plans so received from the prospective Resolution Applicants. During the meeting, RP informed the CoC that both the prospective Resolution Applicants are eligible under Section 29A of the IB Code to submit their respective Resolution Plans. The said fact is reflected in the minutes of meeting annexed as Annexure X of the application. 2.7 Meanwhile, 180 days of CIRP was getting over on 28.10.2019. RP apprised the same to CoC members and CoC was of the view that since the Resolution Plans received did not met the expectation, CoC should try to negoti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the event, the CIRP Costs is lower than ₹ 1.20 crores, the excess amount shall be added to the payment being made to the Financial Creditors if CIRP Costs is more than ₹ 1.20 Crores then RA shall provide additional fund. 1.20 Crores As and when incurred Section 3.1 of the Resolution Plan Payment of Workmen Employees Dues Payment towards discharge of the Operational Creditors being the liabilities pertaining to Workmen and Employees Dues in full and final settlement. Payment towards the remaining Operational Creditors including Statutory Dues of the Corporate Debtor and Other Creditors (excluding Related Party Creditors) (other than the Workmen and Employment Dues) 0.30 Crores 0.17 Crores Within T+30 Days T+30 Days Section 3.5 of the Resolution Plan Section 3.5 of the Resolution Plan The RA will infuse ₹ 0.30 Crores The RA will infuse ₹ 0.17 Crores Payment to the Financial Creditors (excluding the Related Party Creditor) Secured Financial Creditors Financial Creditors (Unsecured) 39.93 Crores 0.46 Crores ₹ 7.60 Crores within 30 days of approval of the Resolution Plan. ₹ 10 Crores in second year. ₹ 22.32 Crores in third year. T+30 Days Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to such creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of priority in sub-section (1) of section 53, whichever is higher, and provides for the payment of debts of financial creditors, who do not vote in favour of the resolution plan, in such manner as may be specified by the Board, which shall not be less than the amount to be paid to such creditors in accordance with sub-section (1) of section 53 in the event of a liquidation of the corporate debtor. Explanation 1.--For removal of doubts, it is hereby clarified that a distribution in accordance with the provisions of this clause shall be fair and equitable to such creditors. Explanation 2.--For the purpose of this clause, it is hereby declared that on and from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019, the provisions of this clause shall also apply to the corporate insolvency resolution process of a corporate debtor- (i) where a resolution plan has not been approved or rejected by the Adjudicating Authority; (ii) where an appeal has been preferred under section 61 or section 62 or such an appeal is not time barre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation value due to operational creditors and provide for such payment in priority to any financial creditor which shall in any event be made before the expiry of thirty days after the approval of a resolution plan by the Adjudicating Authority; and (c) liquidation value due to dissenting financial creditors and provide that such payment is made before any recoveries are made by the financial creditors who voted in favour of the resolution plan. [ (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. The said objective of the Resolution Plan is affirmed in the decision in the matter of K. Sashidhar Vs. Indian Overseas Bank Ors. The Supreme Court has observed that National Company Law Tribunal has no jurisdiction and authority to analyze or evaluate the commercial decision of the Committee of Creditors (CoC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 i.e. Concession, Relief and Dispensation, sought for in the Resolution Plan, is not going to make any hindrance for proper implementation of the Resolution Plan as those are the subject matter of the concerned/appropriate Competent Authorities. The Resolution Applicant(s) has/have liberty to approach Competent Authorities for any concession, relief or dispensation as the case may be as when required for proper and effective implementation of the Plan. 9. Apart from the above observations and directions, it is further directed/observed that: i. The approved Resolution Plan shall come into force with immediate effect. ii. The Resolution Plan shall be subject to the various existing laws in force and shall also confirm to such other requirements specified by the Board and other Statutory/Competent Authorities as the case may be. iii. The Resolution Applicant(s) shall pursuant to the Resolution Plan approved under section 31(1) of the Code, obtain the necessary approvals required under any laws for the time being in force within a period of one year from the date of approval of the Resolution Plan by the Adjudicating Authority under section 31(1) or within such period as provided fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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