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2021 (3) TMI 64 - Tri - Insolvency and BankruptcySeeking approval of resolution plan - section 30(6) read with section 31 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Looking to the entire facts of the case, it is found that the CoC has approved the plan with 100 per cent. voting in favour of the approval of the plan. More so, the resolution applicant fulfils the mandatory contents of the resolution plan as provided under regulation 38 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Further, from the object of the IBC, it is amply clear that the "resolution is rule and the liquidation is an exception". Liquidation brings the life of a corporate to an end. It destroys organizational capital and renders resources idle till reallocation to alternate uses. Further, it is inequitable as it considers the claims of a set of stakeholders only, if there is any surplus after satisfying the claims of a prior set of stakeholders fully. The IB Code, therefore, does not allow liquidation of a corporate debtor directly. It allows liquidation only on failure of corporate insolvency resolution process. It rather facilitates and encourages resolution in several ways - Keeping in view such object behind the enactment of the Code, intention of the Legislature, that the priority is to be given to the resolution than liquidation in the larger interests of the public, workmen, stakeholders and the other employees of the corporate debtors in the interest of justice and in order to achieve the object of the Code and liquidation of a company can be only as a last resort, wherein, all efforts for bringing resolution plan were failed or it cannot be found workable in the larger public interest. The hon'ble Supreme Court in its recent judgment in K. SASHIDHAR VERSUS INDIAN OVERSEAS BANK & OTHERS [2019 (2) TMI 1043 - SUPREME COURT] comprising of the hon'ble Justice A. M. Khanwilkar and hon'ble Justice Ajay Rastogi observed that the Adjudicating Authority has no jurisdiction to interfere with the commercial wisdom of the CoC. On the backdrop of the decision taken by the hon'ble Supreme Court, it is pertinent to note that commercial wisdom of the CoC cannot be interfered into by the Adjudicating Authority. The Adjudicating Authority, is of the considered opinion and also being satisfied that the resolution plan as approved by the committee of creditors (CoC) meets the requirements as referred to under section 30(2) of the Code - Application allowed.
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