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TMI Blog2021 (7) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... s the requirements of Section 30(2) of the Code and Regulations 37 and 38 of the Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law. The same needs to be approved as provided under Section 31 of the Code - Application allowed. - IA No. 2419/MB/2020 in C.P. (IB) No. 3456/MB/2018 - - - Dated:- 22-6-2021 - Janab Mohammed Ajmal, Member (J) And V. Nallasenapathy, Member (T) For the Appellant : Akshay Gosavi and Karishma Acharya, Advocates ORDER Janab Mohammed Ajmal, Member (J) 1. This is an Application filed by the Resolution Professional of the Corporate Debtor under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (the Code), seeking approval of the Resolution Plan submitted by M/s. Yashasvee Textiles Private Limited (Resolution Applicant). 2. The facts leading to the Application may be stated as under. a. Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by this Bench by order dated 14.10.2019 upon admission of a Petition under Section 7 of the Code and the Applicant was appointed as the Interim Resolution Professional (IRP). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resolution Plan shall become binding on the Corporate Debtor, its employees, members, creditors, guarantors and Central and State Government Agencies including Tax Authorities, Stamp Duty Authorities, any other Government Authority in relation to the implementation of the Resolution Plan, upon its approval by this Authority. Further, Transfer Date means the date on which proposed transaction is completed in accordance with the terms of the RFRP, the definitive agreements and the applicable laws. Proposed Transaction means acquisition of management control or acquisition of assets or any other transaction as envisaged in the Resolution Plan. c. The Resolution Plan does not envisage any term for its successful implementation. The 'Transfer Date' provided under the RFRP has also not been defined in the Resolution Plan. It will not be proper to leave the implementation of the Resolution Plan to an uncertain future. We accordingly are of the considered opinion that a definite date/time frame should be indicated for the implementation of the Resolution Plan and that would mean the Transfer Date contemplated under the RFRP. Such stipulation would not, in our opinion, go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted (since realised) in the Corporate Debtor's Account maintained by the RP and this amount shall be utilised towards payments to the financial creditors. i. SUPERVISION OF THE RESOLUTION PLAN: A Monitoring Committee consisting of three members-one representatives of SRA, one from CoC and the RP will be constituted. The Monitoring Committee shall supervise the implementation of Resolution Plan from the approval date till the transfer date. j. MANAGEMENT OF THE CORPORATE DEBTOR: The Applicant herein shall continue to manage the business and operations of the Corporate Debtor till the transfer date. Thereupon, after implementation of the Resolution Plan the shareholding of the Corporate Debtor shall be held by the SRA and the SRA is at liberty to reconstitute the Board of Directors of the Corporate Debtor in accordance with law. k. COMPLIANCE OF MANDATORY CONTENTS OF RESOLUTION PLAN UNDER THE CODE AND THE 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 Regulations and has submitted his Form H under Regulation 39(4). The Plan is in compliance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibility and viability, as required under Regulation 38(3) of the Regulations. 7. The SRA has sought certain reliefs, concessions and waivers at Clause 8 of the Resolution Plan. 8. It is beneficial to refer to the observation of the Hon'ble Supreme Court in Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta Ors. as under: 67. ............ A successful resolution Applicant cannot suddenly be faced with undecided claims after the resolution plan submitted by him has been accepted as this would amount to a hydra head popping up which would throw into uncertainty amounts payable by a prospective resolution Applicant who successfully take over the business of the corporate debtor. All claims must be submitted to and decided by the resolution professional so that a prospective resolution Applicant knows exactly what has to be paid in order that it may then take over and run the business of the corporate debtor. This the successful resolution Applicant does on a fresh slate, as has been pointed out by us hereinabove. 9. In view of the above ruling of the Apex Court, the Resolution Applicant takes over the Corporate Debtor with all its a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame needs to be approved as provided under Section 31 of the Code. Hence ordered. ORDER The Application be and the same is allowed. The Resolution Plan submitted by M/s. Yashasvee Textiles Private Limited annexed to the Application is hereby approved. It shall become effective from this date and shall form part of this order. a. It shall be binding on the Corporate Debtor, its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan. b. As far as the permits held by the Corporate Debtor and the rights and benefits accrued therein, the Corporate Debtor (under the new Management) needs to approach the authorities concerned for renewal and that the same may have to be considered by them favourably, subject to relevant Law and Rules, so that the implementation of Plan becomes smooth. c. With regard to the reliefs and concessions sought by the Resolution Applicant in respect of the Corporate Debtor, the Monitoring Committee or the new Management, as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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