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2018 (11) TMI 803 - AT - Insolvency and BankruptcyCorporate Insolvency Resolution Process - ‘Resolution Plan’ approved by the ‘Committee of Creditors’ - Whether the ‘Committee of Creditors’ discriminated between the eligible ‘Resolution Applicants’, while considering the ‘Resolution Plan’ of ‘Rajputana Properties Private Limited’? - Whether the ‘Resolution Plan’ submitted by ‘Rajputana Properties Private Limited’ is discriminatory? - Held that:- If need be and if an extraordinary situation so arises, the ‘Committee of Creditors’ holds the discretion in conformity with the Regulations framed by the Board to extend the timeline over and beyond the ‘process documents’. The said fact is also evidenced in the proviso to Clause 1.3.1 of the ‘process document’ which provided that even after the deadline of the submission of the ‘Resolution Plan’, any ‘Resolution Plan’ could be verified by the ‘Resolution Professional’ as per ‘I&B Code’ and be considered by the ‘Committee of Creditors’. However, it is also provided that the ‘Committee of Creditors’ may it its discretion, evaluate, accept or reject such ‘Resolution Plans’. It is informed that the ‘Committee of Creditors’ by majority decision has approved the plan submitted by ‘Ultratech Cement Limited’ which was found to be eligible in absence of any demerit under Section 29A of the ‘I&B Code’. i. The ‘Resolution Professional’ had approached the Adjudicating Authority for seeking clarification in respect of the applications filed by the ‘IDBI’ for being representative as a member of the ‘Committee of Creditors’. ii. The Adjudicating Authority passed order on 17th November, 2017 against which the appeal was filed by the ‘IDBI’ before this Appellate Tribunal wherein by order dated 18th December, 2017, we directed the ‘Resolution Professional’ to reconsider the claims of ‘IDBI’ uninfluenced by the decision of the Adjudicating Authority, Principal Bench. In compliance with such order, the ‘Resolution Professional’ admitted the claim of ‘IDBI’ and ‘SBI (Hong Kong)’ as beneficiaries of corporate guarantees issued by the ‘Corporate Debtor’ and included their representatives to be part of the ‘Committee of Creditors’ subject to any final determination of the claims of ‘IDBI’ and ‘SBI (Hong Kong)’ at any judicial forum including the National Company Law Appellate Tribunal. iii. Eventually, ‘IDBI’ and the members of ‘Committee of Creditors’ arrived at a settlement in consequence of which this Appellate Tribunal allowed ‘IDBI’ to withdraw its appeal. The ‘Resolution Professional’ thereby, became bound by the settlement and the decision of this Appellate Tribunal by which claims of ‘IDBI’ and ‘SBI Hong Kong’ were allowed and incorporated. In this background, in absence of any fault on the part of the ‘Resolution Professional’ it was not case for the Adjudicating Authority to pass adverse observations against the ‘Resolution Professional’. iv. The approval of the ‘Resolution Plan’ is in the domain of the ‘Committee of Creditors’ and not that of ‘Resolution Professional’ and, therefore, if the ‘Resolution Plan’ provides for the mandatory contents and is in accordance with the ‘I&B Code’ even if in case a ‘Resolution Plan’ does not provide for full satisfaction of claims of ‘Operational Creditors’, in absence of any power of the ‘Resolution Professional’ to reject such ‘Resolution Plan’, the ‘Resolution Professional’ cannot be blamed. The Adjudicating Authority has failed to notice the aforesaid fact and made adverse comments against the ‘Resolution Professional’ by impugned order dated 2nd May, 2018 which are uncalled for. In exercise of powers conferred by Section 31 of the ‘I&B Code’ read with order of remand by the Hon’ble Supreme Court, we have gone through the records, revised ‘Resolution Plan’ submitted by ‘Ultratech Cement Limited, gist of which noticed earlier and being satisfied that the ‘Resolution Plan’ approved by the ‘Committee of Creditors’ under sub-section (4) of Section 30 in its 17th meeting held on 28th May, 2018 meets the requirements as referred to in sub-section (2) of Section 30, we approve the revised ‘Resolution Plan’ submitted by ‘Ultratech Cement Limited’ which shall be binding on the ‘Corporate Debtor’ and its employees, members, Creditors, guarantors and other stakeholders involved in the ‘Resolution Plan’.
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