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2019 (4) TMI 1797 - Tri - Insolvency and BankruptcyApproval of Resolution plan - one of the justifications for approval of the Resolution Plan is that the Applicant wishes to run this business as a going concern and hence taken all measures viz. payments to employees salary/gratuity in full. HELD THAT:- The Procedure as prescribed under The Code is that a Resolution Plan is required to be submitted by a Resolution Application u/s. 30 of The Code. On approval, the Resolution Professional is to submit u/s. 30(6) the Resolution Plan, as approved by the Committee of Creditors, to the AA. Thereafter, u/s. 31, as reproduced supra, AA is to examine the contents of the Resolution Plan. The mandate of this section is that if the AA is "satisfied" that the Resolution Plan as approved by the Committee of Creditors meets the requirement as referred to in Section 30(2), shall by an Order, approve the Resolution Plan. So the prerequisite is that recording of "satisfaction" by AA is a condition precedent. A "satisfaction" is to be recorded in writing in the Judgment approving the Resolution Plan. The Resolution Plan as approved by the Committee of Creditors is by and large hereby sanctioned by this Order in view of the recent judgment of the apex court in K Sashidhar v. Indian Overseas Bank [2019 (2) TMI 1618 - SUPREME COURT OF INDIA]. The Hon'ble Supreme Court in the said order has made clear that the role of CoC is quite vital for deciding the fate of the company It has been held that the Adjudicating authority is not required to go into the merits or reasoning of the decision taken by the CoC for approval or rejection of a resolution plan. The only benchmark which is set up to be determined by the AA is to see whether the plan has been approved by 75% voting of the CoC or not. Therefore, the commercial wisdom is not allowed to be interfered with. The approval of a Resolution Plan by the CoC is to be accepted in toto by the Adjudicating authority if a 75% voting share approves the said plan. Because of the latest decision, the scope of any suggestion or alteration in the impugned resolution plan is very limited. As far as the procedure is concerned, in this case, the same has been followed as per the provisions of the Insolvency Code, therefore, the Resolution Plan has to be approved. The Resolution Applicant has submitted an affidavit as required u/s. 30(1) of the Code stating that he is eligible u/s. 29A of the Code - The Resolution Plan is binding on the Corporate Debtor and other stakeholders involved so that revival of the Debtor Company shall come into force with immediate effect and the "Moratorium" imposed under section 14 shall cease to have any effect henceforth.
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