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TMI Blog2019 (8) TMI 1785X X X X Extracts X X X X X X X X Extracts X X X X ..... ejection of resolution plan by descending financial creditors. This Authority cannot sit in appeal against the financial decisions that are taken by CoC, In our considered opinion, it is within commercial wisdom of the CoC as to what Financial Creditors will get what share of the resolution funds. The objection of Canara Bank is rejected and it is proceeded to check whether the resolution plan submitted for our approval complies the approval under Section 30(2) of Insolvency and Bankrutpcy Code, 2016. It is seen that there is no Operational Creditor, employees or the workmen and hence no provision made towards their payment - Para 6 of mandatory contents of the plan provides mechanism regarding management in control of affairs of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 admitted the Corporate Person in CIRP Moratorium under Section 14 of Insolvency and Bankruptcy Code, 2016 was issued. One Mr. Ram Ratan Modi was appointed as Interim Resolution Professional (in short IRP ). The IRP made public announcement of CIRP of the Corporate Debtor and called its creditors to submit the claims. He received claims from two public sector banks and one Non Banking Financial Company. He alloted the vote matrix to them based on their debts in following manner:- (i) Canara Bank- 24.30% (ii) North Eastern Development Finance Corporation Ltd. - 47.77% (iii) Punjab National Bank - 29.93% 3. In the first meeting of Committee of Creditors (in short CoC ) dated 28.09.2018, IRP Mr. Ram Ratn Modi was replaced by Ms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. However, the CoC approved the resolution plan of M/s Jagannath Financial Advisory Private Limited by 75.70% of votes. 4. The RP filed application being CA(IB)No.709/KB/2019 under Section 31 of Insolvency and Bankruptcy Code before this Authority for approval of the resolution plan of M/s Jagannath Financial Advisory Private Limited. 5. The Canara Bank filed affidavit in opposition raising same plea that the distributionof the resolution funds is improper. They must get due share considering the fact that they hold 80% of the assets of the Corporate Debtor as security. 6. We have gone through the record. We heard Ld. RP, Ms. Mamta Binani and Ld. Counsel Somdutt Bose for Canara Bank at length. Ld. RP submitted that objection raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial Creditors are equally treated while distributing funds. 9. In case of K. Sashidhar Vs. Indian Overseas Bank Limited (Civil Appeal No. 10673 of 2018), the Hon ble Apex Court hold that, the legislature has not endowed on the Adjudicating Authority (NCLT) with the jurisdiction or authority to analyse or evaluate commercial decision of CoC which lies to enquire into the justness of the rejection of resolution plan by descending financial creditors. 10. In short it is held that this Authority cannot sit in appeal against the financial decisions that are taken by CoC, In our considered opinion, it is within commercial wisdom of the CoC as to what Financial Creditors will get what share of the resolution funds. 11. Hence, we r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed among all the Financial Creditors giving them equal share i.e. 23.43%. RP has certified the plan and compliance Certificate is produced as Annexure-F. The affidavit of resolution applicant is also produced stating that they are not disqualified under Section 25A of Insolvency and Bankruptcy Code, 2016. 15. Perusal of plan shows that it does not contravene any provision of law time being in force and it complies all requirement of Insolvency and Bankruptcy Board of India (in short IBBI ). In view of this, we accept and approve resolution plan of M/s Jagannath Financial Advisory Private Limited. We pass the following order:- ORDERS (i) The Resolution Plan of M/s Jagannath Financial Advisory Private Limited, which is approved by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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