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2020 (5) TMI 672 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to repayment of its dues - existence of debt and dispute or not - HELD THAT:- The restructuring plan which, as already indicated, cannot be reckoned as a resolution plan seeks to afford a backdoor access to the former managing director of the corporate debtor. Such an action is prohibited under law. The restructuring plan masqueraded as a resolution plan by Mr. Madhusudhan accordingly cannot be accepted, notwithstanding its approval by the CoC. Such approval cannot be said to be in conformity with section 30(2) of the Code. Restructuring plan in the garb of a resolution plan having failed to garner acceptance of this Authority, further prayer in I. A. No. 68 of 2020 by the resolution applicant to grant him sufficient time to make necessary modification to the said resolution plan cannot therefore, be acceded to. The prerogative of the CoC in not considering the resolution plan submitted by M/s. Orion Ferro Alloys P. Ltd., and Mr. Madhusudhan Raju Chintalapati cannot be evaluated by the Authority. The commercial wisdom of the CoC in accepting a resolution plan needs to be respected by the Adjudicating Authority - Having said that it would not be out of place mention here that the Adjudicating Authority can evaluate a resolution plan if it conformed to terms of section 30(2) of the Code. As already indicated the resolution plan approved by the CoC does not meet the requirements of section 30(2) of the Code. The same therefore, could not be accepted. Its non-acceptance however would not automatically render the plan submitted by M/s. Orion Ferro Alloys P. Ltd., acceptable. Application dismissed.
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