TMI Blog2019 (7) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... nt as the Financial Creditors . Such treatment having not been made instead of rejecting the plan, we modify the plan as proposed by Resolution Applicant which also pass the test of Section 30 (2) (b). The Resolution Applicant is allowed to modify and substitute the Resolution Plan and the re-distribution be made in a manner as proposed by 3rd Respondent - appeal allowed to that extent. - Company Appeal (AT) (Insolvency) No. 773 of 2018 - - - Dated:- 23-4-2019 - S.J. Mukhopadhaya, Chairperson, Mr A.I.S. Cheema, Member (Judicial) And Mr Kanthi Narahari, Member (Technical) For The Appellant : Mr. Nakul Mohta and Mr. Ankur Goel, Advocates For The Respondents : Mr. Pulkit Goyal, Mr. M.S. Kalra, Mr. Sandeep Mishra, Mr. Nikhil Jain and Ms. Isha Khurana, Advocates, Mr. K. Datta, Mr. Prithu Garg, Mr. Abhay Pratap Singh and Ms. Niharica Khanna, Advocates And Mr. Rajesh Kr. Gautam and Ms. Khushboo Aggarwal, Advocates JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. Pursuant to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ( I B Code for short) filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allocated to the Operational Creditor . 7. Learned counsel appearing on behalf of the Punjab National Bank - (4th Respondent) submitted that pursuant to the observations of this Appellate Tribunal, a meeting of erstwhile Financial Creditors was held along with erstwhile Resolution Professional and the Successful Resolution Applicant on 2nd April, 2019 to arrive at a consensus for payment to Appellant- M/s. Mecamidi HPP India Ltd. so that a Chart showing distribution between the Financial Creditors and the Operational Creditors in a manner which is not arbitrary or discriminatory. However, no consensus could be arrived at between the erstwhile Financial Creditors and the Successful Resolution Applicant and thereby requested this Appellate Tribunal to pass appropriate order. 8. The distribution of amount amongst the Financial Creditors and the Operational Creditor as shown in the Resolution Plan of 3rd Respondent- ( M/s. Kundan Care Products Ltd. ) is as under: Sr. No. Category of stakeholder Name Amount cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Guide on Insolvency Law [ UNCITRAL Guidelines ] recognizes the importance of ensuring equitable treatment to similarly placed creditors and states as follows: Ensuring equitable treatment of similarly situated creditors 7. The objective of equitable treatment is based on the notion that, in collective proceedings, creditors with similar legal rights should be treated fairly, receiving a distribution on their claim in accordance with their relative ranking and interests. This key objective recognizes that all creditors do not need to be treated identically, but in a manner that reflects the different bargains they have struck with the debtor. This is less relevant as a defining factor where there is no specific debt contract with the debtor, such as in the case of damage claimants (e.g for environmental damage) and tax authorities. Even though the principle of equitable treatment may be modified by social policy on priorities and give way to the prerogatives pertaining to holders of claims or interests that arise, for example, by operation of law, it retains its significance by 12 UNCITRAL Legislative Guide on Insolvency Law ensuring that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l creditors under a resolution plan shall be given priority in payment over financial creditors. (1-A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor. 11. Learned counsel appearing on behalf of the 3rd Respondent ( Successful Resolution Applicant ) has brought on record a revised distribution chart and submitted that keeping in consideration the Liquidation value of the Company at ₹ 15.39 Crores, as per which the Appellant- Operational Creditor is entitled to minimum ₹ 0.44 Crores. The proposed redistribution of amount amongst Creditors is as follows: As per Original plan As per Revised Plan As per Liquidation Name of Creditor Claim Amount Amount Provided Ratio Amount Provided Ratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant ), as follows: As per Original plan As per Revised Plan Name of Creditor Claim Amount Amount Provided Ratio Amount Provided Ratio PNB 98.76 27.48 27.83% 26.70 27.04% OBC 59.51 16.56 27.83% 16.08 27.02% Kotak 1.37 0.38 27.83% 0.37 27.01% Operational Creditor (Mecamidi) 4.71 1.27 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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