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2019 (11) TMI 1517 - Tri - Insolvency and BankruptcyApproval of the Resolution Plan - Section 30(6) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- On perusal of the Resolution Plan, it is found that Resolution Applicant viz. M/s. Fitcast Founders & Engineers Private Limited, is a company engaged in the manufacturing and marketing of CI Castings and other Castings which are having a direct relevance with the business of the Corporate Debtor and accordingly, the promoters are to be considered as from the same line of business having better understanding of the manufacturing process, market as well as entire technical aspects which shall definitely result into proper resolution of the Corporate Debtor. The RA along with its consortium member viz. Omkara Assets Reconstruction Private Limited is having adequate net worth and accordingly, the commitment by the RA can be fulfilled without any hesitation. Section 53 of the Code lists the priorities to be given to the beneficiaries, of liquidation value of the assets of the Corporate Debtor. The provisions of Section 53 make it amply clear that Operational Creditors are at the end of the list of beneficiaries as the Secured Financial Creditors have edge over the others - It would also be pertinent to mention here that Operational Creditors have no locus standi as far as approval of the Resolution Plan by the CoC is concerned. On perusal of the records, it is found that the Resolution Plan confirms to the criteria as provided under clauses (a) to (f) in section 30(2) of the Code and the CoC approved the Resolution Plan by 67.08 per cent majority of voting share. However, during the course of proceedings, the Bank of India submitted their acceptance to the Resolution Plan making the approval of the Resolution Plan by 83.89 per cent. The Resolution Plan also confirms to such other requirements as may be specified by the Board. The decisions of the CoC are based on their commercial wisdoms, hence does not attract any interference - On perusal of the Resolution Plan, it is found that it meets the requirement of Section 31 r/w Section 30(2) of the Code. Therefore, the present application IA 352 of 2019 is allowed subject to certain observations. The approval of the Resolution Plan does not mean automatic waiver or abetment of any legal proceedings which are pending by or against the Company/Corporate Debtor as those are the subject matter of the concerned Competent authorities having their proper/own jurisdiction to pass any appropriate order as the case may be - not allowing the above said Clause No. 14 of the Resolution Plan is not going to make any hindrance for proper implementation of the Resolution Plan as those are the subject matter of the concerned/appropriate Competent Authorities. The approved Resolution Plan shall come into force with immediate effect - application allowed.
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