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2018 (9) TMI 137 - NATIONAL COMPANY LAW TRIBUNAL KOLKATA BENCH, KOLKATACorporate insolvency proceedings - legitimate claims of workmen - proceedings initiated in this case at the instances of the corporate debtor - Held that:- In the absence of any supporting materials brought to the notice of this Bench that any legitimate claims of workmen were rejected unreasonably, this Bench could not find any fault with the Resolution Professional, who was unable to consider the claim which has been directed to file by the workmen in the prescribed format giving all the necessary data. Failure from the side of the workmen in submitting the required data in the prescribed format for the consideration of the claims cannot be a ground for rejection of the resolution plan in hand. Nothing produced to prove that it has been implemented or that the workmen are entitled to have any benefit under the alleged pay revision of 2007. The reasons for rejection of claims, non inclusion of arrears of 1997 pay revisions and non-implementation of 2007 pay scale submitted by the resolution professional being supported with proof it appears to me that none of the objections raised on behalf of the workmen at the time of consideration of the approval of the resolution plan in hand are found devoid of any merit. Upon commencement of the CIRP any legal proceedings if any initiated against the corporate debtor is to be stayed and there is no bar on any suit or proceedings instituted by the corporate debtor as against an operational creditor. That being so pendency of a civil suit filed by the corporate debtor as against the intervener in this case is not at all a bar to proceedings initiated in this case at the instances of the corporate debtor. No other objections raised on any other sides regarding approval of the resolution plan. The Resolution Plan in hand fulfilled to meet the requirements as referred to in sub-section (2) of section 30 of the Code. However, it is pertinent to note that this is a unique Resolution Plan rather a plan for repayment of outstanding debts found due from the corporate debtor to various stake holders and to its workmen and staff. The corporate debtor/ corporate applicant was an industry originally engaged in wagon manufacturing which is at present running at loss due to intense competition following the entry of new players. High level of debt and increased loses prompt the corporate applicant to file the application in hand. The Resolution Plan has been prepared on the strength of a letter no.2018/M(W)/300/2 dated 12.02.2018 addressed to the Corporate Debtor/ Corporate Applicant from the Ministry of Railways (Railway Board), Government of India, who recommended closure of Corporate Applicant company. Therefore, what is to be understood from the Resolution Plan is that on the basis of allocation of fund in the budget 2018-19, the Corporate Applicant would like to settle its liabilities and provides a repayment plan. So, the Resolution Plan in hand is a repayment plan for settlement of liabilities of the Corporate Applicant so that the closure of the Corporate Applicant can be effected, instead of liquidating the company. On going through the letter above and the Resolution Plan, it is understood that the Resolution Applicant in the instant case has prepared the Resolution Plan and submitted to the CoC for its approval through the Resolution Professional and it is that Resolution Plan came up for consideration and on further examination, satisfied that the said plan meets the requirements as stipulated under section (2) of section 30 of Insolvency & Bankruptcy Code, 2016. Therefore, the Resolution Plan deserves approval. Accordingly, the Resolution Plan is approved upon the following directions. ORDER:- The Resolution Plan, which is approved by the CoC with a voting share of hundred percentage is hereby approved under provisions of section 31(1) of the Insolvency & Bankruptcy Code, 2016, which will be binding on the Corporate Debtor/Corporate Applicant, its employees, members, creditors, coordinators and other stakeholders involved in the Resolution Plan. 2. The resolution plan of the company shall come into force with immediate effect. 3. The moratorium order passed under Section 14 shall cease to have effect. 4 The Resolution Professional shall forward all records relating to the conduct of the Corporate Insolvency Resolution Process and the Resolution Plan to the Insolvency and Bankruptcy Board of India to be recorded on its database.
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