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2018 (10) TMI 1952 - Tri - Insolvency and BankruptcyApproval of Resolution Plan for Corporate Debtor - section 31of I&B Code - HELD THAT:- Section 31 of I&B Code requires that the Adjudicating Authority to approve the plan as approved by the CoC upon being satisfied that the plan meets all the requirements as referred to in sub-section (2) of section 30 of I&B code. Sub-section (2) of section 30 of I&B Code mandates that the resolution plan must provide (a) insolvency resolution process costs; (b) repayment of the debts of operational creditors subject to provision of section 53 of I&B Code; (c) provides the mechanism of the management of the affairs of the corporate debtor after the approval of the resolution plan; (d) provide mechanism of implementation and supervision of the resolution plan. The Authority has also to be satisfied with the fact that the plan does not contravene any provisions of law and it is in conformity with all the requirements of law. In Part-A of the Resolution Plan, it is found that the provision is made for payment of insolvency resolution process costs. It appears to be somewhat at higher side because provision of amount of Rs.12.20 crores is made to incur resolution costs, which includes fees of resolution professional amounting to Rs.6.33 crores (page 29). However, since it is approved by the CoC and this authority has no reason to doubt wisdom of CoC, it is held that the provisions of section 30(2)(a) of I&B Code is complied with. The plan also provides that repayment of debts of operational creditor - the provisions of section 30(2)(b) and 30(2)(c) of I&B Code are complied with. One, Mr. Nitesh Kumar sworn an affidavit on behalf of the resolution applicant stating that the resolution applicant, Consortium of United Tradeco FZC and QVC Exports Pvt. Limited does not suffer from any disqualification as stated under section 29A of the I&B Code. The plan does not contravene any provisions of law and the same is in conformity with the provisions of I&B code. Resolution Professional has produced the certificate under Regulation 39(4) of the I&B Code in Form H stating that the plan is in conformity with all legal requirements. The Resolution Plan submitted for approval of this Authority complies with all the requirements stated under section 30(2) of the I&B code - Resolution Plan for Corporate Debtor is approved - application allowed.
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