TMI Blog2019 (12) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... tation of the Resolution Plan . After approval of the plan in terms of Section 31 of the I B Code , it is binding on all the stakeholders, including the Creditors and no party can claim any right against the Corporate Debtor including right to set off. In fact, the Resolution Plan makes the debt payable to any stakeholders/ Creditors clear and no stakeholders including the Creditors can claim any dues from the earlier period thereafter. Carry forward losses of the Corporate Debtor - HELD THAT:- In spite of notice to the Income Tax Authority, no reply has been filed and no objection has been raised - taking into consideration the submissions made by the counsel for the Appellant- JSW Steel Limited and taking into consideration the provisions of the Income Tax Act, 1961, including Section 79 and the Rules and Regulations framed thereunder, it is held that both the Successful Resolution Applicant and the Income Tax Department will be guided by the Income Tax Act, 1961 and the Rules and Regulations framed thereunder. If the Successful Resolution Applicant is entitled to carry forward losses under Section 79 of the Income Tax Act, it may claim such benefit before the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y (National Company Law Tribunal), Bench-III, New Delhi, the Adjudicating Authority by order dated 19th December, 2018 as clarified vide order dated 16th April, 2019, having found the plan in compliance with the provisions of the Insolvency and Bankruptcy Code, 2016 ( I B Code for short) particularly Section 30(2), approved the plan with two conditions. 3. The Appellant has challenged part of the impugned order dated 16th April, 2019 in so far it relates to right to receivables , carry forward losses and subsidiaries, associate companies and joint ventures of the Company . 4. According to counsel for the Appellant, the Resolution Plan having been found to be in accordance with Section 30(2) of the I B Code and having been approved by the Committee of Creditors with 100% voting shares in absence of any objection by any of the party, the Adjudicating Authority while passing order under Section 31 of its own, was not empowered to impose any condition either relating to right to receivables or carry forward losses or subsidiaries, associate companies and joint ventures of the Company . 5. The Resolution Professional or the Committee of Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift: Provided further that nothing contained in this section shall apply to any change in the shareholding of an Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger of a foreign company subject to the condition that fifty-one per cent shareholders of the amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company: [ Provided also that nothing contained in this section shall apply to a company where a change in the shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner.] 8. However, in view of the modification of the plan as proposed by the Resolution Applicant (Appellant herein), we are not deliberating such issue on merit. 9. With regard to right to receivables , the Adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the Corporate Debtor prior to approval of the Resolution Plan , we hold that such right of privilege, claim or rights over the assets stand extinguished after the approval of the plan under Section 31. 14. In the case of Committee of Creditors of Essar Steel India Limited Through Authorised Signatory v. Satish Kumar Gupta Ors.─ Civil Appeal Nos. 8766-67 of 2019 etc. , the Hon ble Supreme Court by its judgment dated 15th November, 2019 observed and held: 67. For the same reason, the impugned NCLAT judgment in holding that claims that may exist apart from those decided on merits by the resolution professional and by the Adjudicating Authority/Appellate Tribunal can now be decided by an appropriate forum in terms of Section 60(6) of the Code, also militates against the rationale of Section 31 of the Code. A successful resolution applicant cannot suddenly be faced with undecided claims after the resolution plan submitted by him has been accepted as this would amount to a hydra head popping up which would throw into uncertainty amounts payable by a prospective resolution applicant who successfully take over the business of the corporate debtor. Al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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