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TMI Blog2022 (5) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... rational Creditor's claim is of Rs. 1,54,64,926/- out of which Rs. 93,00,564/- is the principal amount and remaining i.e. 61,00,000/- is the interest which is calculated on the basis of invoices raised. Therefore, Operational Creditor has filed this IA-4103/2021 against the rejection of the interest by RP. 2. As Both the IA's pertains to the Approval of Resolution Plan and Objection to the Resolution Plan, hence we are disposing both of them by common order of this Bench. 3. The facts mentioned in the IA 2946/2021 in brief are as follow: * The Corporate Debtor i.e. M/s. VINAYAK RATHI STEELS ROLLING MILLS PRIVATE LIMITED is having its registered office located at Z-196, Loha Mandi, Narayana, New Delhi-110028, and was originally incorporated as a private limited company under the name & style of Good Luck Sales Private Limited on 17th October, 1979 and in the year 2008 changed its name to Vinayak Rathi Steels Rolling Mills Private Limited. It is classified as a Non-Govt. Company and is registered with Registrar of Companies, NCT of Delhi & Haryana. * The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor i.e. M/s. VINAYAK RATHI STE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ix and RFRP is attached at Annexure- A8. On the publication of revised Eol on 02.12.2020, four applicants namely Sunrise Industries, K.L. Rathi Steels Ltd., ASC Consulting Pvt. Ltd. and Subhash Bhati & Ashok Kumar Bhati had shown their interest by submitting their response and all the applicants had deposited EMD of Rs. 1,00,000/-. Out of those 4, only one Resolution Applicant (RA) viz. Mr. Subhash Bhati & Ashok Kumar Bhati had submitted their Resolution plan. That the said RA belongs to Category C - Individual investor/Consortium of individual Investors. * Since the CIRP period of 180 days was originally ending on 17.12.2020, this Adjudicating Authority vide order dated 04.02.2021 allowed the exclusion of 14 days on account of nationwide lockdown and further passed the order of extension of CIRP period for 90 days in IA 5485/2020 and further, in IA 1748/2021 excluded the period of 50 days and extended the period for 60 days vide order dated 10.06.2021 upto 13.07.2021. * It is submitted that the CoC in the 14th CoC meeting held on 08.07.2021, with 100% voting shares, approved the Final Resolution Plan post five iterations submitted by Mr. Subhash Bhati & Ashok Kumar Bhati. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the 2nd Eol, only one Resolution Applicant viz. Mr. Subhash Bhati & Ashok Kumar Bhati submitted their resolution plan against the RFRP (Request for Resolution Plan) issued. It is submitted that Resolution Plan had undergone five iterations, and is in compliance of Section 30 of IBC, 2016 r/w regulation 37, 38 & 39 of CIRP Regulations, 2016. The Successful Resolution Applicant has submitted performance security deposit on 23.06.2021 for an amount of Rs. 150 lacs in the account of CD/FC. 4. After the Submission of Resolution Plan, IA 4103/2021 which is the objection to the Resolution Plan is filed by one Operational Creditor. 5. Brief Facts submitted by the Objector/Operational Creditor is as follows: * IA 4103/2021 is filed by M/s. RAJATMETAAL POLYCHEM PVT. LTD. (hereinafter called "OC") under Sec. 60(5) of the IBC, 2016 read with Rule 11 objecting to the Resolution plan submitted by the Applicant/RP for Approval. * The OC of the Corporate Debtor has submitted its claim of Rs. 1,54,64,926/- on the basis of invoices raised before the Applicant/RP. OC submits that, out of the aforesaid amount, amount of Rs. 93,00,564/- is the principal amount and an amount of Rs. 61,00,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne 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 payment of other debts of the corporate debtor; (b) provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than- (i) the amount to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or (ii) the amount that would have been paid to such creditors, if the amount to be distributed under the Resolution Plan had been distributed in accordance with the order of priority in sub-section (1) of section 53, whichever is higher, and provides for the payment of debts of financial creditors, who do not vote in favour of the Resolution Plan, in such manner as may be specified by the Board, which shall not be less than the amount to be paid to such creditors in accordance with sub-section (1) of section 53 in the event of a liquidation of the corporate debtor. Explanation 1. -- For removal of doubts, it is hereby clarified that a distribution in accordance with the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Resolution Plan) and it provides the entire payment plan to the Financial Creditor as per the due diligence and valuation conducted by the resolution applicant in compliance with the Section 30(2) of the IBC, 2016 read along with regulation 38(1) of the CIRP Regulations. 10. In terms of Section 30(2)(c), management of the affairs and control of the business of the Corporate Debtor shall vest with the Resolution Applicants and this has been provided at page 142 & 143 & at page 146 point 5 of the Resolution Plan. 11. The next requirement envisaged by Section 30(2)(d) is that it must provide for the implementation and supervision of the Resolution Plan. In this regard, relevant entry are given at page no 189 and 190 (Form H) of the Resolution Plan. Page 14 of the Resolution Plan provides for the Formation of the Monitoring Committee which says that CoC has ratified and approved the formation of the Monitoring Committee for Initial 1 year upon approval of Resolution plan. Monitoring Committee will comprise of FC, RP and RA to monitor the implementation of Resolution Plan. They will hold monthly/quarterly meetings and a fee of Rs. 50,000 (exclusive of taxes) per meeting is fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty is to check whether the proposed Resolution plan has complied with the provisions of Sec. 30(2) of the Code and whether it has received the assent of CoC Members with 66% or more. It is the CoC wisdom which should prevail and Adjudicating Authority cannot interfere in the business decisions when there is no contravention of any of the provisions of the Code. * As regards compliance of Clause (b) of Section 30(2) of the Code, which provides for the payment of the debts of operational creditors 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. The Resolution plan has no provision for the payment to Operational Creditors (Clause VI(b) of the Resolution Plan) and it provides the entire payment plan to the Financial Creditor as per the due diligence and valuation conducted by the resolution applicant in compliance with the Section 30(2) of the IBC, 2016 read along with regulation 38(1) of the CIRP Regulations. 15. On perusal of the Resolution Plan, we are of opinion that Resolution plan does not contravene any of the provisions of the Code, Resolution Applicant has made the payme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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