9911796707
TMI Blog2021 (4) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... his is an Application under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (the Code) by the Resolution Professional of the Corporate Debtor seeking approval of the Resolution Plan submitted by the Resolution Applicant, Majestic Auto Limited. 2. The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by this Bench by order dated 08/05/2019. The Applicant submits that the CIRP of the Corporate Debtor has been conducted in compliance with the provisions of the Code and the Rules framed there under. The Committee of Creditors (CoC) of the Corporate Debtor consists of only one unrelated Secured Financial Creditor viz., Axis Bank Limited. 3. During the CIRP, two Resolution Plans were received by the Applicant, respectively from M/s Majestic Auto Limited (Majestic) and Romell Real Estate Private Limited. The CoC after several rounds of negotiations with the Resolution Applicants evaluated both the Plans as per the Evaluation Matrix. The CoC accepted the Resolution Plan submitted by Majestic, the highest bidder (H1). After due verification of the eligibility of the Successful Resolution Applicant in terms of Section 29A of the Code, the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b. Trade Creditors (including other liabilities) 22,33,115 22,33,115 c. Statutory Dues* 1,63,00,000 1,63,00,000 2. Financial Creditor Secured 76,74,62,002.14 76,74,62,002.14 Unsecured 3,24,00,421 3,24,00,421 TOTAL 81,84,10,538.14 81,84,10,538.14 c. In addition to the above amount, the Resolution Applicant undertakes that the security deposit of ₹. 6,03,76,146/- payable by the Corporate Debtor to the tenants of the building will be the liability of the Resolution Applicant. Name of Tenant Amount of security deposit (₹) Aditya Birla Finance Ltd 1,42,43,436/- Founding year learning solutions 27,04,800/- Romell Real Estate Private Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rupees Three Hundred and Seventy Eight Crores and Fifty Lacs only) and certificate issued by its Chartered Accountant certifying that the Resolution Applicant has sufficient financial capabilities are also enclosed to the Application. 8. On implementation of the plan, the entire existing share capital of the Corporate Debtor including preference share capital will be cancelled at a nominal cost. Fresh capital infusion comprising of 5,00,000 shares of ₹. 100 each shall be issued to the RA and/or its nominee. 9. Compliance of mandatory contents of Resolution Plan under the Code and CIRP Regulations: The Applicant has conducted a thorough compliance check of the Resolution Plan in terms of the Code as well as Regulations 38 and 39 of the Insolvency and Bankruptcy Board of India (Corporate Insolvency Resolution Process) Regulations, 2016 (the Regulations) and has submitted the Form H under Regulation 39(4) of the Regulations. It is submitted that the Plan is in compliance with the provisions of the Code and the Regulations. It is further submitted that the Resolution Applicant is not ineligible under Section 29A of the Code. 10. Performance Bank Guarantee: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : a. Plan provides for the priority payment of CIRP costs in full. b. Plan provides for the payment of Operational Creditors. c. Plan provides for the management of the affairs of the Corporate debtor after approval of the resolution plan; d. Plan provides for the implementation and supervision of the resolution plan; and e. The Resolution Applicant has given a declaration that the Resolution Plan does not contravene any provisions of the law for the time being in force. 16. The Resolution Plan is in compliance of the Regulation 38 of the Regulations in terms of Section 30(2)(f) of the Code as under: a) Payment to Operational Creditor will be made in priority over Financial Creditor (Regulation 38(1)(a)). b) Since the plan has been approved by 100% voting share of the CoC, provision of dissenting financial creditor does not arise. This is in compliance of Regulation 38(1)(b) of the Regulations. c) Declaration by the Resolution Applicant that the Resolution Plan has considered the interest of all the stakeholders of the Corporate Debtor, keeping in view the objectives of the Code (Regulation 38(1A)). d) Declaration by the Resolution Applicant that neith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the same may have to be considered by them favourably, subject to relevant Laws and Rules, so that the implementation of Plan becomes smooth. iii. The Memorandum of Association (MoA) and Articles of Association (AoA) shall accordingly be amended and filed with the Registrar of Companies (RoC) concerned for information and record. The Resolution Applicant, for effective implementation of the Plan, shall obtain all necessary approvals, under any law for the time being in force, within such period as may be prescribed. iv. Henceforth, no creditors of the erstwhile Corporate Debtor can claim anything other than the liabilities taken over by the Resolution Applicant. v. The moratorium under Section 14 of the Code shall cease to have effect from this date. vi. The Applicant and the Monitoring Committee shall supervise the implementation of the Resolution Plan and the Applicant shall file status of its implementation before this Authority from time to time, preferably every quarter. vii. The Applicant shall forward all records relating to the conduct of the CIRP and the Resolution Plan to the IBBI along with copy of this Order for information. viii. The Applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
