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2019 (12) TMI 191 - Tri - Companies LawCIRP - Approval of Resolution Plan - Section 30(6) of the Insolvency and Bankruptcy Code, 2016 - compliance with the requirement of Section 31 r/ w Section 30(2) of the Code - HELD THAT:- On perusal of the Resolution Plan, it is found that Resolution Applicant viz. M/S. Fitcast Founders & Engineers Private Limited, is a compan) engaged in the manufacturing and marketing of CI Castings and othel Castings which are having a direct relevance with the business of thc Corporate Debtor and accordingly, the promoters are to be considered from the same line of business having better understanding of thc manufacturing process, market as well as entire technical aspects whick shall definitely result into proper resolution of the Corporate Debtor. Thc RA along with its consortium member viz. Omkara Assets Reconstructior Private Limited is having adequate net worth and accordingly, thc commitment by the RA can be fulfilled without any hesitation. The 'I&B Code' defines 'Resolution Plan' as a plan for insolvency resolution of the 'Corporate Debtor' as a going concern. It does not spell out the shape, color and texture of 'Resolution Plan', which is left to imagination of stakeholders. Read with long title of the 'I&B Code', functionally, the 'Resolution Plan' must resolve insolvency (rescue a failing, but viable business); should maximize the value of assets of the 'Corporate Debtor', and should promote entrepreneurship availability of credit and balance the interests of all the stakeholders. On perusal of the records, it is found that the Resolution Plan confirms to the criteria as provided under clauses (a) to (f) in section 30(2) of the Code and the COC approved the Resolution Plan by 67.08 per cent majority of voting share. However, during the course of proceedings, the Bank of India submitted their acceptance to the Resolution Plan making the approval of the Resolution Plan by 83.89 per cent. The Resolution Plan also confirms to such other requirements as may be specified by the Board. The decisions of the COC are based on their commercial wisdoms, hence does not attract any interference - On perusal of the Resolution Plan, it is found that it meets the requirement of Section 31 r/ w Section 30(2) of the Code. The approval of the Resolution Plan does not mean automatic waiver or abetment of any legal proceedings which are pending by or against the Company/ Corporate Debtor as those are the subject matter of the concerned Competent authorities having their proper/own jurisdiction to pass any appropriate order as the case may be. The Resolution Applicant on approval of the Plan may approach those Competent Authorities/Courts/Lega1 Forums/Offices - Govt. or Semi Govt. / State or Central Govt. for appropriate relief(s) sought for in Clause No. 14 of the Resolution Plan. The Adjudicating Authority on being satisfied that the Resolution Plan as approved by the Committee of Creditors (COC) meets the requirements as referred to under section 30(2) of the Code . application allowed.
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