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2022 (4) TMI 654 - Tri - Insolvency and BankruptcyValidity of Resolution Plan - placing of Resolution Plan of the Corporate Debtor before the Committee of Creditors - direction to Committee of Creditors of the Corporate Debtor to consider the Resolution Plan - backing of settlement proposal mooted by the promoters through Section 12A application - whether the Resolution Plan of the Applicant can be placed before the CoC for its consideration? - HELD THAT:- The Applicant instead of providing the documents as sought for by the RP, has replied by way of an email on 29.10.2020 that it has made its stand clear with regard to Section 29A of IBC, 2016 compliance in the previous correspondence, therefore not required to provide any further information. Even after subsequent communication, instead of providing the information as sought for by the RP, the Applicant has sought to set up a meeting with the members of the CoC. It is to be seen that it is the duty of the Resolution Professional under Section 25(2)(h) of IBC, 2016 to invite the prospective Resolution Applicant, who fulfil the criteria laid down by the RP with the approval of the CoC and as per Section 30(1) of IBC, 2016 the Resolution Applicant is required to submit an affidavit that he is eligible under Section 29A of IBC, 2016 along with Resolution Plan. Further Regulation 36A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 states that the RP shall specify the criteria for the prospective Resolution Applicant as approved by the CoC in accordance with clause of Section 25(2)(h) of IBC, 2016. Thus, it is seen that as per Regulation 36A(9) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the RP is at liberty to seek any additional clarification or additional information or document from the prospective Resolution Applicants for conducting due diligence under Sub - Regulation 8 of Regulation 36A in relation to provisions of clause (h) of sub-section (2) of 25 and provisions of Section 29A of the Code and other requirements as specified in the Invitation for Expression of Interest and the Resolution Applicant is duty bound to provide such information as sought by the RP - Thus, it is required to be noted that the RP is at liberty to seek additional information to conduct due diligence to find out the criteria mentioned in Information Memorandum and also to conduct due diligence that the prospective Resolution Applicant is not hit by Section 29A of IBC, 2016. In any case, at this point of time, the Resolution Plan submitted by one Earth Element has already been approved by the CoC in compliance with the provisions of IBC, 2016 and it has been stated that the plan approved by the CoC is far superior in value to the plan submitted by the Applicant. Further, we have also not found any legal infirmity in the action taken by the RP in conducting due diligence under Section 29A of IBC, 2016 as stipulated under Regulation 36A(8) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and also the Applicant has failed to place on record the additional document as sought for by the RP under Regulation 36A(9) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Application dismissed.
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