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2023 (8) TMI 480 - AT - Insolvency and BankruptcyApproval of Resolution Plan (at second round) - it is alleged that the payments to the Operational Creditors have decreased in the revised payments proposal - HELD THAT:- The direction of this Tribunal in M/S. RANA SARIA POLY PACK PVT. LTD. VERSUS UNIWORLD SUGARS PVT. LTD., NCIRCLE EXIM LLP AND SIMBHAOLI SUGARS LIMITED VERSUS PRAMOD KUMAR SHARMA, RESOLUTION PROFESSIONAL OF UNIWORLD SUGARS PRIVATE LIMITED (USPL) , COMMITTEE OF CREDITORS OF UNIWORLD SUGARS PRIVATE LIMITED (USPL) , IDBI BANK LTD. THROUGH ITS AUTHORIZED REPRESENTATIVE, ORIENTAL BANK OF COMMERCE, THROUGH ITS AUTHORIZED REPRESENTATIVE, UNION BANK OF INDIA, M/S. NCIRCLE EXIM LLP [2022 (5) TMI 460 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL NEW DELHI] indicate that the Resolution Plan was set aside only to the extent it relates to allocation of payment to stakeholders and creditors and directed that revision of payments and subsequent approval of the revised resolution plan was to be completed within a period of two months. Subsequent to order of this Tribunal, the revised proposal for distribution was placed before the Committee of Creditors which came to be approved on 11.05.2022. The revised plan which has been approved indicate that payments to workmen and employees has been increased as well as payment to Financial Creditors. There is little decrease in payment to Operational Creditors, earlier Rs.1.69 Crores were allocated which is now at Rs.1.57 Crores (which has been actually paid). It is now well settled that distribution to the creditors in accordance with provisions of Section 30(2) is in the discretion of the Committee of Creditors and with regard to distribution the scope of judicial review by the Adjudicating Authority and this Tribunal is very little. From the facts brought on the record it does appear that liquidation value of the Operational Creditors is nil. When payment of Rs.1.57 Crore has been proposed in the plan, it cannot be said that there is violation of any provisions of law especially Section 30(2) of the Code. The present is a case where the Corporate Debtor is not being liquidated rather resolution plan has been approved as per the Insolvency and Bankruptcy Board of India. (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - there is no applicability of Regulation 29 while approving the resolution plan - such submission of the Appellant cannot be appreciated. There is no infirmity in the impugned order of the Adjudicating Authority approving the Resolution Plan. There is no merit in the Appeal. Appeal is dismissed.
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