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2019 (6) TMI 1152 - Tri - Insolvency and BankruptcyApproval of Resolution Plan - HELD THAT:- Requirements under Section 31(1) of the Code are satisfied in the present case. In para No.3 of Form H (supra) the resolution plan has certified that the resolution plan complies with all the provisions of the Code and Regulations and does not contravene any of the provisions of the law for the time being in force except to the extent already discussed above. Resolution Professional has also certified that the resolution applicant Kundan Care Products Ltd. has submitted affidavit dated 29.06.2018 pursuant to Section 30(1) of the Code confirming its eligibility under Section 29A of the Code to submit the resolution plan and the contents of the said affidavit are in order. The resolution professional has submitted that the resolution plan has been approved by the CoC with 100% voting share in accordance with the provisions of the Code and CIRP Regulations made thereunder and after considering the feasibility and viability and other requirements specified by the CIRP Regulations. The final consideration payable by the resolution applicant M/s. Kundan Care Products Ltd. is up front payment of ₹ 45.12 crores towards insolvency resolution process costs and secured financial creditors and ₹ 50,00,000/- for the operational creditors within a period and for the purpose discussed above. The members of the CoC were given an opportunity of being heard and have stated that all the three financial creditors have approved the plan and no objections are to be filed. We have already pointed out above that the consideration of ₹ 45.12 crores plus ₹ 50,00,000/- is more than that of the fair value of ₹ 25.90 crores and liquidation value of ₹ 15.38 crores (para 2 of Form H) . Above that CA was filed by the ex-Director of the suspended Board of Directors Shri Rajit Mehra and his plea for impleadment was not accepted but in the interest of justice, the objections raised by the learned counsel have been considered above. We may add here that an application (CA No.442/2018) under Sections 43, 44, 66 and 67 read with Section 69 of the Code has been filed by the resolution professional in respect of preferential transactions and fraudulent trading and those matters are still pending. The resolution plan submitted by M/s. Kundan Care Products Ltd. as approved by the CoC under Section 30 (4) of the Code is approved and the same shall be binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan, with the following further directions to the Resolution Applicant:- (i) that the Resolution Applicant shall be bound by the directions, judgements, orders, interim orders or otherwise, subject to the right to challenge these orders in respect of the assets/properties of the corporate debtor. (ii) that the Resolution Applicant shall deposit an additional amount of ₹ 50,00,000 (Rupees fifty lacs only) over and above the bid amount of ₹ 45.12 crores within seven days of the receipt of copy of this order in a separate account in consultation with the monitoring agency for payment to operational creditors as explained at page 9 of the resolution plan and in case the amount is still unutilized, the same would be disbursed to operational creditors on pro rata basis. Under the provisions of Section 31 (3) of the Code, we also direct as under:- (a) The moratorium order passed by the Adjudicating Authority under Section 14 of the Code on 25.01.2018 shall cease to have effect; and (b) The resolution professional shall forward all records relating to the conduct of the corporate insolvency resolution process and the resolution plan to the Board to be recorded on its database.
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