9911796707
TMI Blog2021 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... 53. All the requirements of Section 30 (2) are fulfilled and no provision of the law for the time being in force appears to have been contravened. In respect of compliances regarding CIRP Regulations especially Regulations 38 and 39, it is seen that RP in its Form-H has certified and explained in details, from pages 374 to 381 of the application, that the Resolution Plan has complied with the all the required Regulations - the Resolution Plan fulfilled the requirement as referred in section 30 (2) and there are sufficient provisions in the plan for its effective implementation as required under the proviso of section 31 of the Code. There is no impediment in giving approval to the Resolution Plan - Resolution Plan approved - application allowed. - (IB) 848 (ND)/2019, IA NO. 3786/ND/2020 - - - Dated:- 24-11-2020 - Abni Ranjan Kumar Sinha, Judicial Member And K.K. Vohra, Technical Member For the Appellant : Abhishek Anand, Kunal Godhwani, Advs. and Ms. Pooja Bahry, RP For the Respondent : Ms. Vrinda, RA ORDER K.K. VOHRA, TECHNICAL MEMBER. 1. The present petition has been filed under section 30(6) of the Insolvency Bankruptcy Code, 2016, (th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? Mr. Binod Sarawgi and Mrs. Vrinda Sarawgi (shareholders/directors/promoters of CD). viii. In the tenth meeting of CoC on 7-8-2020 (Pg 191), the RP placed both the revised resolution plans and after evaluation, the CoC with 100% voting (Pg 200), approved the resolution plan dated 27-6-2020 (read with addendum dated 4-8-2020) submitted by Mr. Binod Sarawgi and Mrs. Vrinda Sarawgi (RA). Among other things, this Plan (submitted by the applicant in this case) was considered superior on account of upfront cash recovery to creditors as well as turnaround capabilities of the PRA (Pg 197). ix. The RP also placed addendum made for the protection of interests of ex-employees, duly approved by CoC in 11th meeting held on 10-10-2020. The signed minutes of 11th meeting along with the addendum have been placed on record vide additional affidavit dated 17-10-2020 (Pg 10) in compliance of order dated 14-10-2020. x. It is further stated that since the CD is a registered Micro, Small and Medium Enterprise (MSME), the RA is not ineligible under section 29A of the Code in terms of Section 240A of the Code. An undertaking in this regard is at page 360. xi. The RP, after approval of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ational 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 debtor under section 53; or (ii) the amount that would have been 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to implement or contributed to the failure of implementation of any other resolution plan approved by the Adjudicating Authority at any time in the past. (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. 8. In view of the aforesaid Regulation, a Resolution Plan is required to contain a statement that how it will deal with the interest of the all stakeholders including Financial Creditor and the Operational Creditors and if these are sufficiently provided in the Resolution Plan then the AA may approve the Resolution Plan, if the AA is satisfied that the Resolution Plan has provisions for effective implementation. 9. In respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being in force appears to have been contravened. In respect of compliances regarding CIRP Regulations especially Regulations 38 and 39, it is seen that RP in its Form-H has certified and explained in details, from pages 374 to 381 of the application, that the Resolution Plan has complied with the all the required Regulations. 15. For the reasons discussed above, in our considered view, the Resolution Plan fulfilled the requirement as referred in section 30 (2) and there are sufficient provisions in the plan for its effective implementation as required under the proviso of section 31 of the Code. Therefore, in our considered view, there is no impediment in giving approval to the Resolution Plan. 16. Accordingly, we hereby approve the Resolution Plan, which was earlier approved by the CoC by the majority vote of 100%. 17. It is clarified that Section 30 (2) (f) of the Code mandates that the Resolution Plan should not be against any provisions of the existing law. The Resolution applicant therefore, shall adhere to all the applicable laws for the time being in force under the proposed Resolution Plan, whether or not specifically provided therein. 18. It is declared that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
