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TMI Blog2022 (1) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... governmental authorities is concerned, the Resolution Applicant is directed to do the same within one year as prescribed under section 31(4) of the Code. The resolution is approved - Resolution Plan as approved is binding on the Corporate Debtor and other stakeholders involved so that the revival of the Corporate Debtor can come into force with immediate effect - moratorium shall cease to have effect. Application allowed. - I.A. No. 290/KB/2021 in C.P. (IB) No. 1911/KB/2019 - - - Dated:- 3-1-2022 - Balraj Joshi Member (Technical) And Rajasekhar V.K. Member (Judicial) For the Applicant/RP : Mr. Shaunak Mitra, Advocate, Mr. Madhur Agarwal, For the Successful Resolution Applicant : Mr. Joy Saha, Senior Advocate, Mr. Rahul Auddy, Advocate ORDER Per: Rajasekhar V.K., Member (Judicial) 1. Preamble 1.1. This Court convened through video conferencing. 1.2. I.A. (IB) No.290/KB/2021 is an application filed by Mr. Madhur Agarwal, Resolution Professional of Hail Tea Limited, under section 30(6) read with section 31(1) of the Insolvency and Bankruptcy Code, 2016 and regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Reso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2nd CoC Meeting 6th March, 2020 3rd CoC Meeting 13th March, 2020 4th CoC Meeting 26th June, 2020 5th CoC Meeting 01st September, 2020 Particulars Date of CoC meeting 6th CoC Meeting 29th October, 2020 7th CoC Meeting 20th November, 2020 8th CoC Meeting 05th December, 2020 3. Collation of claims 3.1. The claims of financial and operational creditors as existing as on the date of filing of the present application are as follows: Name of Creditor Amount claimed Amount of claim admitted Secured Financial Creditors ₹14,43,30,743/- ₹14,43,30,743/- Financial Creditors (related party) ₹7,44,95,600/- ₹7,44,95,600/- Operational Credito ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Compliances with statutory provisions 5.1. The successful Resolution Applicant has submitted a certificate/affidavit of eligibility [Annexure M; Page 140 of I.A.] under section 29A of the Code. It is further submitted that the Corporate Debtor is a MSME under section 240(a) of the Code, hence the Resolution Applicant is eligible to file a Resolution Plan. 5.2. The Resolution Professional filed a Compliance Certificate in prescribed form, i.e., Form H in compliance with regulation 39(4) of the Insolvency Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 5.3. The details of various compliances as envisaged within the Code and the CIRP Regulations which requires a Resolution Plan to adhere to, is reproduced hereunder: I. Submission of Resolution Plan in terms of sub-section (2) of section 30 of the Code (as amended vide Amendment dated 16 August 2019): Clause of s. 30(2) Requirement How dealt with in the Plan a. Plan must provide for payment of CIRP cost in priority to repayment of other debts of CD in the manner spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the assets whether subject to any security interest or not; Not proposed by the Resolution Applicant. ba. restructuring of the corporate debtor, by way of merger, amalgamation and demerger Not proposed by the Resolution Applicant. c. the substantial acquisition of shares of the corporate debtor, or the merger or consolidation of the corporate debtor with one or more persons; Clause 3.6 at Page 27 of the Resolution Plan. ca. cancellation or delisting of any shares of the corporate debtor, if applicable; clause 3.6 at Page 27 of the Resolution Plan. d. satisfaction or modification of any security interest; clause 4.1 at Page 31 of the Resolution Plan. (relinquishment/waiver of liabilities) e. curing or waiving of any breach of the terms of any debt due from the corporate debtor; clause 4.1 at Page 31 of the Resolution Plan. (relinquishment/waiver of liabilities) f. reduction in the amount payable to the creditors; clause 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) the term of the plan and its implementation schedule; Clauses 3.7; 3.8 at Pages 28-29 of the Resolution Plan. b) the management and control of the business of the corporate debtor during its term; and Clause 3.6 Page 27 of the Resolution Plan. c) Adequate means for supervising its implementation. Clause 3.8 Page 29 of the Resolution Plan. 38(3) A resolution plan shall demonstrate that- a) it addresses the cause of default; Page 13 of the Resolution Plan. b) it is feasible and viable; Clause 3.7 at Page 28 of the Resolution Plan. c) it has provisions for its effective implementation; Clause 3.9 at Page 30 of the Resolution Plan. d) it has provisions for approvals required and the timeline for the same; and Not proposed by the Resolution Applicant e) the Resolution Applicant has the capability to implement the resolution plan. Clause 2.0 at Pages 15-20 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000 /- ₹10,00,00,000/- -Unsecured (Related party) ₹7,44,95,600/- 0.00 0.00 0.00 Employee Dues ₹12,59,000/- ₹3,85,418/- ₹2,56,945/- 0.00 ₹6,42,363/- Electric Charges ₹35,00,000/- ₹10,71,455/- ₹7,14,304/- 0.00 ₹17,85,759/- Suppliers of Goods and Services ₹1,40,78,134/- ₹43,09,740/- ₹28,73,160/- 0.00 ₹71,82,900/- Workmen s Due ₹61,00,000/- ₹18,67,393/- ₹12,44,929/- 0.00 ₹31,12,322/- PF Dues ₹2,10,13,798/- ₹64,32,955/- ₹42,88,637/- 0.00 ₹1,07,21,592/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Applicant s investment of Rs. 1.00 Crore as and when the liability may arise. 5. All the Statutory dues / Government dues of the corporate debtor The judgment of the Hon'ble Supreme Court in Ghanashyam Mishra Sons Pvt Ltd v Edelweiss Asset Reconstruction Company Ltd. [6 2021 SCC OnLine SC 313 decided on 13.04.2021.] lays down that when the resolution plan is approved by NCLT, the claims as provided in the resolution plan shall stand frozen and will be binding on the corporate debtor, and its employees, members, creditors, including the central and state government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims which are not a part of resolution plan shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim which is not part of the resolution plan. 6. All the Current Liabilities of the corporate debtor other than those covered under the Resolution Plan 7. All the Litigations / Claims / S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e eligible. However, the Resolution Applicant is requested to be more careful. 13. On hearing the submissions made by the Resolution Professional, and perusing the record, we find that the Resolution Plan has been approved with 100% voting share. As per the CoC, the plan meets the requirement of being viable and feasible for revival of the Corporate Debtor. By and large, all the compliances have been done by the RP and the Resolution Applicant for making the plan effective after approval by this Bench. 14. We are satisfied that the Resolution Plan is in accordance with sections 30 and 31 of the IBC and also complies with regulations 38 and 39 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. No circumstances exist that militate against grant of approval for the Resolution Plan. 15. As far as the question of granting time to comply with the statutory obligations/seeking sanctions from governmental authorities is concerned, the Resolution Applicant is directed to do the same within one year as prescribed under section 31(4) of the Code. 16. Any relief sought in the Resolution Plan, where any contract, agreement, understanding, procee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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