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TMI Blog2021 (3) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... ) inviting claims from the creditors of the Corporate Debtor. ii. The CoC in its 2nd meeting held on 08.01.2019 decided to replace the IRP with Mr. Rajat Mukherjee (the present Applicant) as the Resolution Professional (RP). This Tribunal by order dated 18.02.2019 confirmed the appointment of the Applicant as the RP. iii. Thereafter, pursuant to the public announcement IRP received two claims from financial creditors i.e. Janakalyan Sahakari Bank Limited and ASREC India Limited one operational Creditor i.e. M/s. Beli Sharma and Company. The Interim Resolution Professional upon verification of the same, constituted the CoC. iv. The Applicant in compliance of the provisions of the Code and Rules framed there under conducted the CIRP of the Corporate Debtor. 3. During the period of CIRP the RP issued Form-G on 14.02.2019 inviting expressions of interest (EOI) in "Free Press Journal" in English and "Tarun Bharat" in Marathi from prospective resolution applicants (PRAs). The last date for receiving the expression of interest was 01.03.2019. The Applicant received EOIs from 2 Prospective Resolution Applicants (PRAs) within the stipulated time period and 1 more expression of intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under: A. The Resolution Applicant is engaged in the business of providing financial consultancy in various fields including insurance sector re-insurance & insurance banking and has client from insurance, re-insurance & insurance broking industry. The Resolution Applicant confirmed that it is eligible to submit Resolution plan as per Section 29A of Insolvency and Bankruptcy Code. B. As the Corporate Debtor is dealer of cars and insurance products, including fresh insurance & renewals the Resolution Applicant under this Resolution Plan has proposed to use customer's data collected by the Corporate Debtor for its insurance advisory. C. The Resolution Applicant has proposed to acquire the full ownership and control over the share capital and management of the Corporate Debtor in the following manner: i. Reconstitution of the board of directors of the corporate debtor such that nominees of the Resolution Applicant shall constitute all the members of the board of directors of the Corporate Debtor; ii. Cancellation and reduction of entire share capital of the Corporate Debtor; iii. Infusion of Equity Subscription amount into the Corporate Debtor by the Resolution Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Corporate Debtor. Accordingly, RA have proposed to allocate Rs. 16,00,000/- towards CIRP which will be paid in priority to all other debt. In the event any CIRP cost is due after the completion of CIRP period and same is approved by CoC and Resolution Professional, same shall be paid out fully. Note 2: Operational Creditors (other than workmen and employees dues) - Payment to them shall be as follows: a. So far no claims have been received till date as set out in the Information Memorandum RA appreciates if any of the existing employees pursue for the continuation of the employment even after the approval of the resolution plan of the corporate debtor. Accordingly, necessary discussions and changes with respect to employment terms will be decided between the continuing employees and P.A. b. However, RA propose to pay rupees Nil as the full and final settlement towards Liabilities pertaining to the Workmen and Employees. Amount if allocated shall be payable in following order:- I. First, towards full and final discharge of the dues/wages of workmen of the Corporate Debtor for the period of 24 months preceding the ICD; II. Second towards full discharge of the liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. The Resolution Applicant proposes to appoint suitably qualified and experienced persons, key personnel and other officer for operations of the Corporate Debtor in terms of Section 30(2)(c). The Plan also provides for implementation of provision of the Resolution Plan as stated above as per Section 30(d). 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. The Resolution Plan is in compliance of the Regulation 38 of the Regulations in terms of Section 30(2)(f) 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 90% voting share of the CoC. 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 neither the Resolution Applicant nor any of his related party has either failed or contributed to the failure of the impl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) the Hon'ble Apex Court clearly laid down that the Adjudicating Authority would not have power to modify the Resolution Plan which the CoC in their commercial wisdom have approved. In para 42 Hon'ble Court observed as under: "Thus, it is clear that the limited judicial review available, which can in no circumstance trespass upon a business decision of the majority of the Committee of Creditors, has to be within the four corners of section 30(2) of the Code, insofar as the Adjudicating Authority is concerned, and section 32 read with section 61(3) of the Code, insofar as the Appellate Tribunal is concerned, the parameters of such review having been clearly laid down in K. Sashidhar (supra)." 15. In view of the discussions and the law thus settled, the instant Resolution Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38(1A) and 39(4) 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 Resolution Plan is feasible and viable. There are no workers claims. Adequate provision is provided for future claims of Operational Creditors if any th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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