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2019 (5) TMI 387 - AT - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - confirmation of resolution plan - change of voting as made by some of the members of the ‘Committee of Creditors’ - Regulation 26 of the ‘Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016’. HELD THAT:- Under sub-section (3) of Section 30, the ‘Resolution Professional’ is required to present to the ‘Committee of Creditors’ for its approval such ‘Resolution Plans’ which confirm the conditions referred to in sub-section (2). It is the ‘Committee of Creditors’ which fix the date of voting and may approve the ‘Resolution Plan’ by vote of not less than 75% (now it is 66%) of voting shares of the ‘Financial Creditors’, after considering its viability and feasibility and such other requirements as may be specified by the Board - As per sub-section (5) of Section 30, the ‘Resolution Applicant’ is required to attend the meeting of the ‘Committee of Creditors’ in which the ‘Resolution Plan’ of the Applicant is considered. The ‘Committee of Creditors’ is required to notice the ‘Resolution Plan’ to find out its viability and feasibility apart from the financial matrix and in appropriate cases may ask the ‘Resolution Applicant’ to improve the plan. The date of approval for ‘Resolution Plan’ is fixed by the ‘Committee of Creditors’. They may fix the date of voting and in appropriate case they may extend the period of voting. There is no provision that once a voting is made, after the final result, if it comes to the conclusion finally in absence of approval of the plan, the ‘Corporate Debtor’ may be ordered for liquidation. It is always open to the ‘Committee of Creditors’ to change their opinion. The ‘Resolution Process’ took place within 270 days and the ‘Committee of Creditors’ had the jurisdiction to change its opinion in favour of the ‘Resolution Plan’ to make it a success and Regulation 26(2) being directory which also stands deleted - impugned order set aside - the ‘Resolution Plan’ being in conformity with Section 30(2) warranted approval by the Adjudicating Authority. The case is remitted to the Adjudicating Authority, Mumbai Bench, Mumbai to approve the plan in terms of Section 31 of the Insolvency and Bankruptcy Code, 2016 with modification i.e. that the plan is to be implemented within the period of 12 years as offered by the ‘Successful Resolution Applicant’ - Appeal allowed.
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