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2019 (7) TMI 734 - AT - Insolvency and BankruptcyApproval of Resolution plan - Appellant submitted that the ‘Resolution Plan’ is arbitrary and discriminatory and is against the object of the ‘I&B Code’ - HELD THAT:- Admittedly, as per the original distribution, the ‘Operational Creditor’ has been paid ‘Nil’ which is much less than the Liquidation value to which the Appellant is entitled. In such case, we hold that the approved plan is in contravention of Section 30(2) (b) of the ‘I&B Code’ - Further, the distribution as made between the ‘Financial Creditor’ and the ‘Operational Creditor’ i.e. 27.83% in favour of the ‘Financial Creditor’ and ‘Nil’ amount in favour of the ‘Operational Creditor’, is also arbitrary and discriminatory. As per the decision of this Appellate Tribunal in “Binani Industries Limited Vs. Bank of Baroda & Anr” (Supra) [ 2018 (11) TMI 803 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI ] and the Hon’ble Supreme Court in “Swiss Ribbon Pvt. Ltd. & Anr. v. Union of India & Ors.” (Supra), the ‘Operational Creditors’ are to be given roughly the same treatment as the ‘Financial Creditors’. Such treatment having not been made instead of rejecting the plan, we modify the plan as proposed by ‘Resolution Applicant’ which also pass the test of Section 30 (2) (b). The ‘Resolution Applicant’ is allowed to modify and substitute the ‘Resolution Plan’ and the re-distribution be made in a manner as proposed by 3rd Respondent - appeal allowed to that extent.
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