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TMI Blog2019 (5) TMI 1916X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to as Regulations) seeking approval of the Resolution Plan. The Resolution Plan duly approved by the committee of creditors (CoC) has been placed on record. The amended memo of parties was filed by diary dated 26.03.2019 and the memo of parties as above is per the amendment. 2. The Company Petition bearing C.P. No. IB-447(ND)/2018 was filed by Amrit Steels / Operational Creditor under Section 9 of the Code for initiating Corporate Insolvency Resolution Process of Tehri Iron & Steel Casting Limited / Corporate Debtor. This Tribunal vide order dated 31.05.2018 admitted the petition and appointed Mr. Praveen Bansal as the Interim Resolution Professional (IRP) with necessary directions and to file regular reports of events. The Resolution Professional made a public announcement in Form A as prescribed under Regulation 6 (1) of the Regulations in English and Hindi Edition of Pioneer newspaper on 07.06.2018 for intimation of commencement of Corporate Insolvency Resolution Process of the Corporate Debtor and for calling the creditors to submit their claims along with the proof in the prescribed format. 3. The First Meeting of COC was held on 29.06.2018 wherein the member of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeting of COC was held on 22.10.2018, wherein the resolution professional presented the resolution plan submitted by Joint Resolution Applicants. The matter was deliberated by the sole member of COC and the member informed that time is required to consult with higher authorities before grant of approval and requested to convene the next meeting on 02.11.2018. The copy of the minutes of the third meeting of COC has been placed on record. 9. The Fourth Meeting of the COC was held on 02.11.2018, wherein the sole member of committee of creditors conveyed that the proposal of joint resolution applicants for reduction of interest rate on bank facilities is not acceptable since rate of interest is linked with the internal rating assigned by the bank, which is mainly derived from the financial position and external rating of the company. The sole member of COC also informed that the proposal of joint resolution applicants for sale of a portion of the factory land and settlement of funded interest term loan for the similar amount is not acceptable since this would requires specific approval of higher authorities. Copy of the minutes of fourth meeting of COC has been placed on record. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to operational creditor should not be lower than 50%. 13. Thereafter, The Sixth Meeting of COC was held on 02.02.2019, wherein the sole member of COC approved the resolution plan and the following resolution was passed: "RESOLVED THAT Resolution Plan submitted to Resolution Professional by Mrs. Madhu Goel and Mr. Vaibhav Goel and presented to the committee of creditors by resolution professional confirming to the conditions referred in section 30 (2) of the Insolvency And Bankruptcy Code, 2016 / Regulations 38 of Insolvency And Bankruptcy Board of India (Insolvency Resolution Process For Corporate Persons) Regulations, 2016 and passed by committee of creditors for credibility of resolution applicant and for feasibility and viability of resolution plan and is hereby approved by the committee of creditors. "RESOLVED FURTHER THAT the Resolution Professional is authorized to submit the applicant to NCLT, New Delhi Bench, for submission of resolution plan under section 30(6) of insolvency and bankruptcy code, 2016 read with regulation 39(4) of the Insolvency And Bankruptcy Board of India (Insolvency Resolution Process Of Corporate Persons) Regulations, 2016 for approval of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for settlement of dues of Amrit steels and the balance for working capital. There will not be change in the share capital pattern. 3. No waiver has been sought in respect of debt in respect of statutory dues, unsecured financial creditors and workers and employees. Payment will be made in the due course of business. 4. Payment to operational creditor other than to governments, unsecured financial creditor and workers and employees has been proposed at 50% of amount outstanding as on date of commencement of insolvency. Operational creditor for the purpose include creditors, whose claims has been admitted as well creditors, who are appearing in books of accounts. 5. Contingent liabilities on account of show cause notices issued by electricity department, central excise department, income tax department, VAT department has been proposed to be paid in full in installments post availing all remedies available with resolution applicants, without any interest, penal interest or damages. Resolution Applicants has also proposed for protection from coercive action by these departments for deposit/settlement of the demand, which are subject to the appeal and waiver of the requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of the Code and is approved by the Committee of Creditors under section 30(4) of the Code, and 2) The Resolution Plan has provisions for its effective implementation. 21. In respect of compliance of point (1) above, we may first state that the resolution plan has been approved by 100% voting share of the committee of creditors. As regards compliance of section 30(2) of the Code, it is necessary to refer to sub-section (2) of section 30 of the Code which reads as follows: "30. Submission of resolution plan.- (1).............. (2) The resolution professional shall examine each resolution plan received by him to confirm that each resolution plan- (a) provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the repayment of other debts of the corporate debtor; (b)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; (c) provides for the management of the affairs of the Corporate debtor after approval ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on professional additionally has certified that the resolution plan has provided for payment of insolvency resolution process costs in a manner specified by the Board in priority to the repayment of other debts of the corporate debtor in compliance to Regulation 38(1)(a) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The source of payment of CIRP Cost has been identified and the payment would be made in priority to any other payment which would be made under the Resolution Plan. The unpaid CIRP cost would be paid by resolution applicant in priority to any other creditor and the source of funds would be contribution by a resolution applicant. Therefore clause (a) of sub-section (2) of Section 30 read with Regulation 38(1)(a) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations, 2016 stands satisfied. 25. Secondly as per clause (b) of Section 30 (2) of the Code, the Resolution Plan must provide 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27. The fourth condition envisaged by Section 30(2)(d) is that it must provide for the implementation and supervision of the resolution plan. As per the Joint Resolution Plan, the term of the resolution plan will be 2 years and the resolution applicants have appointed CA Ajay Kumar Aggarwal as the monitoring professional to monitor and supervise the implementation of the resolution plan on such fee will be settled between him and the resolution applicants. The period of implementation of the plan to be monitored by the monitoring professional is for a period of two years. Cost of supervision will be paid by Corporate Debtor / Joint Resolution Applicants. The Resolution Professional has certified that the Resolution Plan provides for term of the plan, its implementation schedule, the management and control of the business of the corporate debtor during the term of plan and adequate means for supervising its implementation. 28. The fifth and sixth conditions in terms of clause (e) & (f) of sub-section (2) of Section 30 of the Code provide to ensure that the Resolution Plan does not contravene any of the provisions of the law and conforms to such other requirements as may be specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fessional has certified that the resolution plan has provided for: a. The term of the plan and its implementation schedule; b. The management and control of the business of the corporate debtor during the term of resolution plan shall lie with the joint resolution applicants and the persons nominated by it for running day to day operations of the Corporate Debtor. c. adequate means for supervising its implementation during the resolution plan. 36. It is accordingly submitted that the Resolution plan provides for term of the Plan, its implementation schedule, the management and control of the business of the corporate debtor during the term of plan and adequate means for supervising its implementation. 37. It is further submitted in the second meeting dated July 30, 2018 that the Committee of Creditor approved for publishing of an advertisement for invitation of Expression of Interest ("EOI")/submission of resolution plan from prospective resolution applicants. The Committee of Creditors decided for deposit of earnest money of Rs. 20 lakhs by prospective resolution applicants upon submission of the Resolution Plan and deposit of earnest money of Rs. 30 lakhs after appro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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