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2018 (6) TMI 491 - AT - Insolvency and BankruptcyCorporate insolvency proceedings - infirmity in the scheme - Held that:- The Scheme was framed without notice to the appellant - unsecured creditor. The Scheme which is deemed to be a ‘Resolution Plan’ is in contravention of Section 30(2)(e) of the I&B Code i.e. not in accordance with the provisions of law time being in force.‘Committee of Creditors’ are supposed to approve the ‘Resolution Plan’ and the ‘Resolution Applicant’ is supposed to pay the dues but no such provision has been made in the scheme. The ‘Resolution Plan’ contravenes the provisions of the Income-tax Act, as alleged by the Principal Commissioner of Income-Tax-7. If the impugned Schemes are treated to be approved (Resolution Plan) under sub-section (1) of Section 31 of the ‘I & B Code’ they being against the provisions of the existing laws and being in violative of clause (e) of sub-section (2) of Section 30 of the I&B Code are illegal. Though, we find that the impugned Schemes dated 11th March, 2010 and 28th July, 2016 are illegal, however, in absence of our jurisdiction to exercise of powers under Section 61 of the ‘I&B Code’ and appeals being barred by limitation, we are not interfering with the illegal Schemes dated 11th March, 2010 and 28th July, 2016 though we hold them as illegal. In absence of any provision to get the Schemes in question executed through any court of Competent jurisdiction, the relevant provision(s) having been repealed, the appellant(s) may raise the question, if the respondent(s) move before any court of Law for implementation of the Schemes.
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