9911796707
TMI Blog2023 (8) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... US PRAMOD KUMAR SHARMA, RESOLUTION PROFESSIONAL OF UNIWORLD SUGARS PRIVATE LIMITED (USPL) , COMMITTEE OF CREDITORS OF UNIWORLD SUGARS PRIVATE LIMITED (USPL) , IDBI BANK LTD. THROUGH ITS AUTHORIZED REPRESENTATIVE, ORIENTAL BANK OF COMMERCE, THROUGH ITS AUTHORIZED REPRESENTATIVE, UNION BANK OF INDIA, M/S. NCIRCLE EXIM LLP [ 2022 (5) TMI 460 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL NEW DELHI] indicate that the Resolution Plan was set aside only to the extent it relates to allocation of payment to stakeholders and creditors and directed that revision of payments and subsequent approval of the revised resolution plan was to be completed within a period of two months. Subsequent to order of this Tribunal, the revised proposal for distribution wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustice Ashok Bhushan ] Chairperson And [ Barun Mitra ] Member ( Technical ) For the Appellant : Mr. Rachit Batra and Mr. Nikhil Singh Raman, Advocates For the Respondents : Mr. Abhijeet Sinha, Mr. Nilotpal Shyam, Mr. Saikat Sarkar and Mr. Mohd. Nazim Khan, Advocates for R-1 (RP). Mr. Mahesh Agrawal, Mr. Ankur Saighal and Mr. Shivam Shukal, Advocates for R-3 (SRA). ORDER Heard learned counsel for the Appellant as well as learned counsel appearing for the Resolution Professional and Successful Resolution Applicant. This Appeal has been filed against order dated 20.03.2023 passed by the Adjudicating Authority approving Resolution Plan at second round. Appellant before us is the Promoter and Shareholder of the Corporate Debtor. In the earl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicating Authority on 17.3.2021 and it is now more than a year since the SRA has stepped in the shoes of the corporate debtor and has taken up implementation of the resolution plan. Hence it would serve the interests of the creditors and stakeholders in a fair and just manner if the SRA revises the payments to be given to stakeholders and creditors resolution plan in the light of the liquidation value of Rs. 123.66 crores and puts it up to the CoC for consideration and necessary approvals. 46. We, therefore, set aside the impugned order and the resolution plan only to the extent it relates to allocation of payments to the stakeholders and creditors and direct that the revision of payments and subsequent approval of the revised resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Bankruptcy Board of India. (Liquidation Process) Regulations, 2016 has not been followed. He submits that the object of the I&B Code is maximisation and when the average liquidation value to be taken was Rs.123.66 Crores, the increase of only Rs.3 Crores in the plan value cannot be said to be in accordance with law and cannot be said to be in line of the order passed by this Appellate Tribunal. 4. Learned counsel for the Resolution Professional refuting the submissions of learned counsel for the Appellant contends that the only limited scope which was left by the order dated 12.04.2022 was redistribution of the payments by taking liquidation value of Rs.123.66 Crores and following the said liquidation value, the plan value which was earl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lan was to be completed within a period of two months. Subsequent to order of this Tribunal, the revised proposal for distribution was placed before the Committee of Creditors which came to be approved on 11.05.2022. The revised plan which has been approved indicate that payments to workmen and employees has been increased as well as payment to Financial Creditors. There is little decrease in payment to Operational Creditors, earlier Rs.1.69 Crores were allocated which is now at Rs.1.57 Crores (which has been actually paid). 8. It is now well settled that distribution to the creditors in accordance with provisions of Section 30(2) is in the discretion of the Committee of Creditors and with regard to distribution the scope of judicial revie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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