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TMI Blog2021 (6) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... solution plan provides for the payment of the debts of operational creditors in such manner as may be specified by the Board which shall not be less than the amount to be paid to the operational creditors in the event of a liquidation of the corporate debtor under Section 53. There appears to be no discrimination in the resolution plan in respective class of creditors, as same treatment is provided to similarly situated each class of creditors - it is seen that clause (b) of sub-section (2) of Section 30 of the Code stands satisfied. 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 - It is a well settled proposition of law that commercial and business decisions of CoC are not open to judicial review. Adjudicating Authority cannot enquire into the commercial wisdom of CoC. The ground for rejection is limited to the matter specified under Section 30(2). It is however reiterated that the resolution plan in question meets the requirements specified in Section 30(2) of the Code and the reasoned commercial decision of CoC is neither discriminatory nor perverse. The requirements as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Form G for inviting expression of Interest ( Eols ) from eligible resolution applicants and providing key parameters for submission of the Eols. 5. That the Applicant placed/made advertisements of the EoI in business standard, Hindi and English editions on 07.10.2019, inviting EoI from Prospective Resolution Applicants ( PRA ), with the last day of submission of EoI being 22.10.2019. To ensure larger participation of the PRA's, the last date for submission of Eol's was extended till 08.11.2019 vide advertisement dated 23 24 October 2019. Further it was again extended till 22.11.2019 vide advertisement dated 09.11.2019. Further it was again extended till 27.11.2019 vide advertisement dated 23 24 November 2019. Finally, it was again extended till 13.01.2020 vide advertisement dated 09.01.2020. 6. That in the second CoC meeting of the Corporate Debtor held on 27.09.2019, the CoC discussed the particulars of the RFRP including the evaluation matrix and the timelines for the CIRP of the Corporate Debtor. Further, due to the increasing interest to participate in the resolution process of the Corporate Debtor and extension of the last date to submit EoI's, revised mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ul Resolution Applicant and ABPL, both the resolution applicants had submitted final resolution plans (including addendum, as applicable) which the members of the CoC found prudent to be placed for voting for their consideration. 11. The Applicant further states that the average liquidation value of the Corporate Debtor under Regulation 35 of the IBBI (Insolvency Regulation Process for Corporate Persons) Regulations 2016 ( CIRP Regulations ), as valued by the two registered valuers (reports of which were presented in the ninth CoC meeting of the Corporate Debtor held on 19.09.2020) is approximately ₹ 143.85 crore. 12. That in the ninth meeting of the CoC held on 19.09.2020, both the representatives of the Successful Resolution Applicant and ABPL were called upon in the meeting to present their resolution plans (including addendum, as applicable), in the same meeting RP after being satisfied that the plans were in conformity with the provisions of Sections 29A and 30(2) of the Code, placed them before the members of the CoC for voting and approval under Section 30(4)of the Code. 13. That the physical voting on the resolution plans happened. The resolution plan (read w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Operational creditors a) Related Party of Corporate Debtor b) Other than above:- i) Government Dues ii) Workmen iii) Employees iv) Others (Other than Government and Workmen Employees) Total (a+b) NIL 7.27 NIL NIL 141.94 149.21 NIL 7.27 (out of this 3.79 is contingent) NIL NIL 119.06 126.33 NIL 7.27 NIL NIL 119.06 126.33 NIL 100% 100% 84.66% Grand Total 20910.54 20681.98 14,917.33 71.33% #The RA has also provided ₹ 25 Lakhs for any unclaimed statutory dues. 18. In terms of Section 30(6) of the Code read with Regulation 39 of the CIRP Regulations, 2016 the resolution professional has submitted the Resolution Plan for seeking an order under Section 31(1) of the Code for approval of the resolution plan passed by the committee of creditors under sub-section (4) of Section 30 with 100% voting share. 19. Section 31 of the Insolvency and Bankruptcy Code, deals with the approval or rejection of a resolution plan by the Adjudicating Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all not be less than the amount to be paid to the operational creditors in the event of a liquidation of the corporate debtor under Section 53. 25. There appears to be no discrimination in the resolution plan in respective class of creditors, as same treatment is provided to similarly situated each class of creditors. 26. Besides, the resolution plan provides for the payment of the debts of operational creditors in such manner as may be specified by the Board which shall not be less than the amount to be paid to the operational creditors in the event of a liquidation of the corporate debtor under Section 53. 27. As a sequel to the aforesaid discussion it is seen that clause (b) of sub-section (2) of Section 30 of the Code stands satisfied. 28. In terms of Section 30(2)(c), the Resolution Plan provides for management of affairs of the corporate debtor after approval of the Resolution Plan. The management of the affairs and control of the business of the corporate debtor after approval of the Resolution Plan has been provided at clause 4.1(iv) of the Resolution plan which inter alia provides that the Company shall continue as a going concern and operate in its normal cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 34. As to the Reliefs and Concessions stated in Chapter IX of the Resolution Plan, the exemption as sought for in relation to the payment of registration charges, stamp duty, taxes and fees arising out of the implementation of the Resolution Plan is not granted. As regards the other reliefs and concessions as sought for, which exempts the Corporate Debtor from holding them liable for any offences committed prior to the commencement of CIRP and as stipulated under Section 32A of IBC, 2016 is granted to the Resolution Applicant. With regard to other concessions and reliefs, most of them are subsumed in the reliefs above granted, whichever is beyond the reliefs granted above, they shall not be construed as granted. The exemptions if any sought in violation of any law in force, it is hereby clarified that such exemptions shall be construed as not granted. In view of the same, this plan is hereby approved. 35. As a sequel to aforesaid discussions we are satisfied that 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 months from the date of approval of the resolution plan, which is higher than the liquidation value of ₹ 1,438 Lakhs. 41. It is a well settled proposition of law that commercial and business decisions of CoC are not open to judicial review. Adjudicating Authority cannot enquire into the commercial wisdom of CoC. The ground for rejection is limited to the matter specified under Section 30(2). It is however reiterated that the resolution plan in question meets the requirements specified in Section 30(2) of the Code and the reasoned commercial decision of CoC is neither discriminatory nor perverse. 42. In the facts we are satisfied that the requirements as per the Code and regulations have been complied with. Moreover, the Resolution Plan has been approved by 100% voting share of the members of CoC and has been submitted in compliance of Section 30 of the Code for approval. In view of the aforesaid discussions and as no infirmity have been brought out upon screening of the Resolution Plan; we hereby approve the Resolution Plan under sub-section (1) of Section 31 of the Code. 43. In respect of reliefs and concessions sought for in the Plan which are beyond the jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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