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TMI Blog2021 (1) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... than the liquidation value - RP has complied with the code in terms of Section 30(2)(a) to 30 (2) (f) and Regulations 38(1), 38(1)(a), 38(2)(a), 38(2)(b), 38(2)(c) 38(3) of CIRP regulations. The 'Resolution Plan' filed with the Application meets the requirements of Section 30(2) of the code, 2016 and Regulations 37, 38, 38(1A) and 39 (4) of IBBI (CIRP) Regulations, 2016. The 'Resolution Plan' is also not in contravention of any of the provisions of Section 29A. Hence, this Adjudicating Authority is satisfied that the Resolution Plan is in accordance with Law - While approving the 'Resolution Plan', it is clarified that the Resolution Applicant shall pursuant to the Resolution Plan approved under Sub-Section (1) of Section 31 of the I B Code, 2016, obtain all the necessary approvals as may be required under any law for the time being in force within the period as provided for in such law. This Adjudicating Authority orders for the Constitution of Monitoring Committee consisting of Mr TSN Raja, RP, representatives nominated by the Financial Creditors and the Resolution Applicant to supervise the implementation of the Resolution Plan and further Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Konaseema Gas Constortium Pvt Ltd being a private limited Company and alhough the holding is 42% of the total equity of that Company, marketability is at stake. h. That the value for the asset offered by HI is ₹ 57.15 Crore. Thus the Resolution Applicant is proposing 58.22% of the Resolution Plan value (₹ 98.15 Cr.) for the Financial Creditors. i. That the CoC in its 15 th Meeting held on 21.02.2019, with 100% majority voted for recommending Resolution Plan to the Adjudicating Authority for approval. The Applicant agreed to give ₹ 2 Crore as performance security. j. That there are 3 creditors in the CoC, details of which with their respective voting shares are as under:- Sl. No Name of Creditor Voting Share (%) 1 IFCI Limited 62.32% 2 Phoenix ARC Private Limited 23.17% 3 Shriram City Union Finance Limited 14.51% 3. Brief contents of the Resolution plan are as under: a. The amounts provided for the stakeholders under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FUND INFUSION 5 REPAIRS AND REFRUBISHING 12.00 6 WORKING CAPITAL MARGIN 5.00 7 WORKING CAPITAL BORROWING 24.00 SUB TOTAL 41.00 TOTAL 98.15 Reiterating above, counsel for the Applicant prayed to allow the Application as prayed for. 4. Heard and perused the record. 5. Section 30(2) of the Code as amended w.e.f. 06.08.2019 enjoins upon the resolution professional to examine each resolution plan received by him to confirm that such plan - a. provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the payment of other debts of the corporate debtor; b. provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than- i. the amount to be paid to such creditors in the event of a liquidation of the corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing: a) Payment of CIRP Cost as specified U/s 30(2)(a) of IBC, 2016. b) Repayment of Debts of Operational Creditors as specified U/s of IBC, 2016. c) Provides for management of the affairs of the Corporate Debtor, after the approval of Resolution Plan, as specified U/s 30(2)(c) of IBC, 2016. d) Provides for appointment of a Monitoring Committee for implementation and supervision of the Resolution Plan consisting the Insolvency Resolution Professional and nominees of the CoC as specified U/s of IBC, 2016. e) The Resolution Plan is not in contravention to any of the provisions of Law, for the time being in force, as specified U/s 30(2)(e) of IBC, 2016. f) The Resolution plan conforms to other requirements specified by the Board. 10. In terms of Regulation 27 of CIRP Regulations, Fair value and Liquidation value was ascertained through two registered valuers, and the same stands at ₹ 109.18 Crores and ₹ 96.92 Crores respectively. The total Resolution Plan value of ₹ 98.15 Crores is higher than the liquidation value. 11. The RP has complied with the code in terms of Section 30(2)(a) to 30 (2) (f) and Regulations 38(1), 38( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided on 05.02.2019 in Civil Appeal No.10673/2018 with CA Nos.10719/2018, 10971/ 2018 and SLP(C) No.29181/2018, the Hon'ble Supreme court, noticing the provisions of section 30(4), 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 (NCLT) is required to satisfy itself that the resolution plan as approved by CoC meets the requirements specified in Section 30(2). No more and no less. 18. In the said judgment, in para 35, the Hon 'ble Supreme Court 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. 19. In view of the discussions in the foregoing p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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