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2019 (8) TMI 267 - Tri - Insolvency and BankruptcyValidity of Resolution Plan - initiation of Corporate Insolvency Resolution Process - Corporate Debtor - default in paying the operational debt towards professional charges - whether the plan is in conformity of provisions of section 30(2) of I&B Code or any other law for the time being in force? HELD THAT:- In this case, no provision of upfront payment is made towards any operational creditors' claim. There is no discrimination made in between operational creditors inter se. Hence, above order does not have binding precedent. The plan is approved by CoC by 100% votes. The CoC took commercial decisions in their wisdom, while approving the plan. Now this authority cannot sit in appeal against the CoC's decision - the objection raised by one of the operational creditors against the approval of this plan is rejected. Clause (c) and (d) of section 30(2) of I&B Code requires the plan should provide mechanism of its effective implementation and mechanism for management of affairs of the corporate debtor. Part-B, sub-para (c) and (d) in the plan, it is mentioned that after approval of the plan, the resolution applicant will appoint Board of Directors to take over the affairs of the corporate debtor from the RP. The Monitoring Committee is also confirmed to oversee effective implementation of the plan - It is seen from the perual of the plan that it does not contravene any provisions of law for the time being in force. It also meets all other requirements as specified by the IBBI. The Resolution Plan which is approved by the CoC with 100% voting percentage, is hereby approved under provisions of section 31(1) of the Insolvency & Bankruptcy Code, 2016 - the revival plan of the company in accordance with approved Resolution Plan shall come into force with immediate effect - moratorium order passed under Section 14 shall cease to have effect.
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