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2019 (5) TMI 481 - Tri - Insolvency and BankruptcyAppointment of Interim Resolution Pofessional - conditional approval of the resolution plans by CoC - HELD THAT:- Regulation 39(3) of the CIRP Regulations does not give room for CoC to pass a conditional approval but only means that the CoC can approve resolution plans which include such modifications to the original plan as the CoC deems fit. Thus, the approval given on the 9th meeting is a conditional approval given to a resolution plan which was not in its final form but still under discussions. The final form was received by the RP on 26.05.2018 which the RP forwarded to SBI, which then gave its oral confirmation to the resolution plan. There are several material irregularities in this procedure followed by the RP. First, the RP bypassed the procedure of calling a meeting to discuss the resolution plan in its final form, in which NSEL would have also been a participant according to Section 24(3)(c) of the Code. In the instant case the RP did not call a meeting of the CoC to approve the final draft of the resolution and further, did not even supply a copy of the final draft of the resolution plan to the other participant of the CoC meetings i.e. NSEL. Second, the RP filed the present application before this Tribunal on the basis of a conditional approval and the written non-conditional approval of SBI dated 29,05.2018 was submitted to this Tribunal only on 25.07.2018 as a response to NSEL's objection. Third, the application for approval of resolution plan was filed on 30.06.2018 when the CIRP period of 270 days had expired on 26.05.2018. The resolution plan is not approved and the application filed by the RP is dismissed and the application filed by the objector, in view of the said dismissal, succeeds.
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