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2019 (4) TMI 910 - Tri - Insolvency and BankruptcyApproval of the Resolution Plan for insolvency resolution of the Corporate Debtor - The Resolution Plan of Kushal Limited jointly with Mr. Sandip Agrawal did not meet with the criteria of the initial deposit of 5% as on stipulated date. Hence the CoC rejected the Resolution Plan - Held that:- Section 53 of IBC 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. Moreover, the claims of the applicants who filed the Intervention Applications are having the claim below 10 per cent of the total debt of the Corporate Debtor. Hence, in view of Section 24(3)(c) of the Code, the operational creditors , if the amount of their aggregate dues is less than 10 per cent of the debt, they are not entitled to attend and vote in the meetings of CoC. Also, Operational Creditors have no locus standi as far as approval of the Resolution Plan by the CoC is concerned. They are not eligible to attend and vote at the meetings of CoC if they are holding less than 10% of the total debt - Section 24(3)(C) of IBC dispel the misconceptions of the Operational Creditors/intervener that they have edge over the other beneficiaries. Resolution Plan as approved by the Committee of Creditors “CoC” meets the requirements as referred to under section 30(2) of the Insolvency and Bankruptcy Code, 2016 and therefore, IA 224 of 2018 is liable to be allowed as prayed for - Resolution Plan dated 26.05.2018 along with Addendum dated 05.06.2018 submitted by the RP with approval of the CoC is approved.
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