9911796707
TMI Blog2023 (7) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... R-3. ORDER Heard learned counsel for the Appellant as well as learned counsel appearing for the Respondents. This Appeal has been filed against the order dated 23.08.2022 by which order the Adjudicating Authority has rejected the application filed by the Resolution Professional being I.A. No. 680 of 2021 praying for approval of the Resolution Plan. The Adjudicating Authority in the impugned order has refused to approve the plan on the ground that it is in violation of Section 30(2)(e) and (f) of the I&B Code. 2. Learned counsel for the Appellant challenging the order contends that the Operational Creditor to whom the Resolution Plan does not allocated any amount, which was found to be in violation of Section 30(2) of the Code by the Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Corporate Debtor may run. 4. Learned counsel for the Dissenting Financial Creditor i.e. Respondent No.3 has opposed the submission of the learned counsel for the Appellant as well as learned counsel for the Resolution Professional and submits that there cannot be any discrimination between payment to Operational Creditors interse, which is a well settled law. It is submitted that the Respondent No.3 was not given any notice of 7th CoC meeting, which is also reason given by the Adjudicating Authority for rejecting the plan. 5. We have considered the submissions of learned counsel for the parties and perused the record. 6. From the facts brought on the record, it is clear that before the Resolution Professional claims were receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the debts of financial and operational creditors, operational creditors having to receive a minimum payment, being not less than liquidation value, which does not apply to financial creditors. The amended Regulation 38 set out in paragraph 77 again does not lead to the conclusion that financial and operational creditors, or secured and unsecured creditors, must be paid the same amounts, percentage wise, under the resolution plan before it can pass muster. Fair and equitable dealing of operational creditors' rights under the said Regulation involves the resolution plan stating as to how it has dealt with the interests of operational creditors, which is not the same thing as saying that they must be paid the same amount of their debt prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Corporate Debtor as a going concern, the said payment can very well be made by the Corporate Debtor but not in the manner as adopted in the Resolution Plan. In the present case, the Resolution Plan was approved by the CoC on 06.08.2021 with 99.84% vote share, however, the Adjudicating Authority rejected the plan by the impugned order. It is also to be noticed that none of the Operational Creditors i.e. State Tax, Government of Gujrat and Central Excise, Government of India have come up in appeal. 9. The Punjab National Bank (Financial Creditor) has also filed an Additional Affidavit in pursuance of order dated 31.03.2023 indicating reason to accept the amount as allocated in the plan. We are satisfied that the said reason makes reasonabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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