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2019 (8) TMI 1785 - Tri - Insolvency and BankruptcySeeking approval of Resolution Plan - One member of CoC, Canara Bank, tendered dissenting vote for approval of the plan on the ground that distribution of resolution funds is discriminatory as against them - whether the decision of CoC can be questioned by Adjudicating Authority (NCLT)? - HELD THAT:- In case of K. SASHIDHAR VERSUS INDIAN OVERSEAS BANK & OTHERS [2019 (2) TMI 1043 - SUPREME COURT] the Hon’‘ble Apex Court hold that, “the legislature has not endowed on the Adjudicating Authority (NCLT) with the jurisdiction or authority to analyse or evaluate commercial decision of CoC which lies to enquire into the justness of the rejection of resolution plan by descending financial creditors.” This Authority cannot sit in appeal against the financial decisions that are taken by CoC, In our considered opinion, it is within commercial wisdom of the CoC as to what Financial Creditors will get what share of the resolution funds. The objection of Canara Bank is rejected and it is proceeded to check whether the resolution plan submitted for our approval complies the approval under Section 30(2) of Insolvency and Bankrutpcy Code, 2016. It is seen that there is no Operational Creditor, employees or the workmen and hence no provision made towards their payment - Para 6 of mandatory contents of the plan provides mechanism regarding management in control of affairs of the Corporate Debtor. It is also provided therein the mechanism for effective supervision and implementation of the plan. Provision is also made to pay resolution costs. The resolution fund appears to be equally distributed among all the Financial Creditors giving them equal share i.e. 23.43%. RP has certified the plan and compliance Certificate is produced as Annexure-F. The affidavit of resolution applicant is also produced stating that they are not disqualified under Section 25A of Insolvency and Bankruptcy Code, 2016 - Perusal of plan shows that it does not contravene any provision of law time being in force and it complies all requirement of Insolvency and Bankruptcy Board of India. The Resolution plan is approved - application allowed.
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