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2019 (3) TMI 1771 - Tri - Insolvency and BankruptcyApproval of Resolution Plan - section 30(4) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The terms and conditions of the resolution plan provide that the management and control of the business of the corporate debtor would remain with duly appointed monitoring committee. The monitoring committee shall submit a detailed report to the National Company Law Tribunal upon completion of implementation of the resolution plan which has been approved with 100 per cent. of voting share by the financial creditors. The expenses incurred by the monitoring committee shall be borne by the resolution applicant on agreed terms. The payments contemplated in the resolution plan shall be the corporate debtor's full and final performance and satisfaction of all its claims. No other payments or settlement (of any kind) will be made to any other person in respect of the claims filed under the resolution process against the corporate debtor. All the guarantees which have not been invoked till the plan approve date shall stand abated/extinguished. This authority deems it fit to direct to the ECGC/RBI/DRI/Income-tax/Sales Tax/ESI or any regulatory/ revenue authority to remove the company's name from SAL, defaulters' list/wilful defaulters' list and discharge/write-off any liability levied on, etc. The reason for giving this direction is that the operational creditors, except the provision(s) made in the resolution plan, would not get anything in the event of liquidation of the corporate debtor. Therefore, for successful implement of the resolution plan as approved by the CoC, the resolution applicant and its nominees will take over the management of the company and if the resolution application is saddled with statutory liabilities then the resolution plan will get frustrated and the company has to face the liquidation under the IBC, 2016. The "resolution plan" approved by the CoCs with 100 per cent. voting share and placed before this authority appears to be in line with the object and purport of the I and B Code, 2016, as it provides for insolvency resolution in a time bound manner for maximization of value of assets, viability of credit and balancing the interest of the stakeholders - thus, the "resolution plan" filed meets the requirements of section 30(2) of the I and B Code, 2016 and regulations 37, 38, 38(1A) and 39 of the IBBI (CIRP) Regulations, 2016. The "resolution plan" is also not in contravention of any of the provisions of section 29A. Resolution Plan approved.
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