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2019 (8) TMI 1528 - Tri - Companies LawApproval of Resolution plan - one of the justifications for approval of the Resolution Plan is that the Liquidation Value is less comparing the proposals made in the Resolution Plan - HELD THAT:- The records of the case have revealed that the valuers have valued the ‘liquidated value’ at ₹13.53 Crores and the ‘Fair Value’ at ₹ 21.70 Cr. The Resolution Applicant is bringing in a sum of ₹29.74 Crores to satisfy Financial Debt . It is noticed that Karad Bank had raised a claim of ₹ 30.27 crore. however only 60% i.e. ₹ 18.16 Cr. And Janklayan Patsanstha had a claim of ₹ 62 lakhs , against that proposed 60% i.e. ₹ 37 lakhs - Regulation 35 of IBBI (CIRP) Regulations, 2016 prescribes that two registered valuers be appointed to give the RP an estimate of the fair value and the liquidation value, respectively assessed at ₹ 21.70 Cr and 13.53 Cr. A methodical scrutiny of Financial Statement is expected before concurring with approval of the CoC. Per contra, absence of recording of subjective satisfaction may lead to situation that, being sanctioned without judicial analysis, thus may not be sustainable in the eyes of law. There are no two views, and must not be, that this I & B Code provides greater accountability both on the Insolvency Professional, as also on CoC, mainly comprise of lender Banks. Their approval of a Resolution Plan ought to be judged with due diligence. To sum up, the recording of an analytical ‘satisfaction’ is a condition precedent before granting of approval. The Resolution Plan as approved by the Committee of Creditors is by and large hereby sanctioned by this Order - the approval of a Resolution Plan can be accepted U/s 31 (1) IBC by Adjudicating Authority after considering feasibility and viability recorded by COC ( refer Sec. 30(4) IBC ) with a 75%/66% voting share consenting for the said plan - 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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