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2020 (5) TMI 663 - Tri - Insolvency and BankruptcyApproval of Resolution Plan - section 30(6) of the Insolvency Bankruptcy Code 2016 - HELD THAT:- The Resolution Plan is in conformity of section 30 (2) of the IBC and Regulation 38 of the CIRP Regulations. The Resolution Plan also includes the mandatory contents of the Code. In the vogue of the current pandemic COVID-19 Virus, the RBI announced "Developmental and Regulatory Policy" in the public interest. The Reserve Bank of India (RBI) announced an extension of the moratorium on loan EM's by three months, i.e. August 31,2020 vide statement on Developmental and Regulatory Policies which sets out various developmental and regulatory policy measures to improve the functioning of markets and market participants; measures to support exports and imports; efforts to further ease financial stress caused by Covid-19 disruptions by providing relief on debt servicing and improving access to working capital; and steps to ease financial constraints faced by State Governments - In view of the relaxation so granted by R.B.I as "Developmental and stated above, the claim of Resolution Applicant in Regulatory Policies", respect of the concession /relaxation in the time line for payment to its Financial Creditors/Operational Creditors/Other stakeholders, if any, is genuine and bonafide, therefore, Resolution Applicant deserves relaxation/concession. Such relaxation in the time frame or timeline for payments is/are not going to change the nature and character of the Plan, moreover such concession/modification is approved by UCO Bank having 83.31% stake, while SBI is having 16.69% stake, but UCO Bank has approved the relaxation, so sought for by the resolution applicant in timeline for the payment. However, SBI though approved its first tranche of payment but have reservation in 2nd tranche of payment. It is needless to mention herein that, the very object of the IBC is, "Resolution is the rule and Liquidation is an exception", liquidation brings the life of a Corporate to an end. It destroys organizational capital and renders resources idle till reallocation to alternate uses. Further, it is inequitable as it considers the claims of a set of stakeholders only, if there is any surplus after satisfying the claims of a prior set of stakeholders fully. The IB Code', therefore does not allow liquidation of a corporate debtor directly. It allows liquidation only on failure of 'Corporate Insolvency Resolution Process'. This Adjudicating Authority, is of the considered opinion and also being satisfied that the Resolution Plan as approved by the Committee of Creditors (COC) meets the requirements as provided under section 30(2) of the Code, along with revised/concession/relaxation, so sought for, by Resolution Applicant on the timeline of payment to Financial Creditors/Operational Creditors and/or other stakeholders, as the case may be, which also became part and parcel of Resolution Plan dated 12.02.2020 - Resolution plan approved.
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