TMI Blog2019 (12) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... aximization of the value of assets of such persons (Corporate persons herein), to promote entrepreneurship availability of credit and balance interest of such persons (Creditors)/ stakeholders. The maximization of value of assets of the Corporate Debtor as also the maximization of the assets of the Financial Creditors and the Operational Creditors , are the basic essence of the I B Code - Even if the earlier unamended Section 30(2)(b) is considered, the basic feature of the I B Code was that an Operational Creditor cannot be paid anything less than the Liquidation Value and the basic principle is the maximization of the assets of the Corporate Debtor , balancing all the stakeholders by maximization of their assets, no Resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an and Mr. Nikhil Ramdev, Mr. NPS Chawla, Mr. Suresh Baxy, Mr. Satvinder Singh, JUDGMENT Sudhansu Jyoti Mukhopadhaya, In the Corporate Insolvency Resolution Process against M/s. Orchid Pharma Limited one Mrs. J. Srinisha, one of the unsuccessful Resolution Applicant filed application for direction on the Resolution Professional to reconsider the Resolution Plan submitted by M/s. Dhanuka Laboratories Ltd. having been rejected by the Committee of Creditors . The Adjudicating Authority (National Company Law Tribunal), Division Bench, Chennai by impugned order dated 25th/27th June, 2019 dismissed the application on the ground that Resolution Plan was considered on merit, based on viability and fea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 5. The question arises for consideration is whether the approved Resolution Plan submitted by M/s. Dhanuka Laboratories Ltd. is viable and feasible or not? 6. Learned Counsel for the Appellant submitted that actual Resolution Value proposed by M/s. Dhanuka Laboratories Ltd. is ₹ 570 crores as against Liquidation Value of ₹ 1309 crores. A tabular statement has been submitted by the Appellant, comparing the Liquidation Value and the approved Resolution Plan submitted by M/s. Dhanuka Laboratories Ltd., is quoted below: - Liquidation Value (Amount in Crores) As per approved Resolution Plan (Amount in Crores) Other ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance from ₹ 123.18 crores to ₹ 321.98 crores is also factored, the Liquidation Value would be ₹ 1508.30 crores. It was alleged that the Committee of Creditors has constituted a Sub-Committee in its 19th meeting on 24th May, 2019 to negotiate with all the Resolution Applicants . Constitution of such Sub-Committee has been held to be illegal by this Appellate Tribunal in its decision in Standard Chartered Bank v. Satish Kumar Gupta, R.P. of Essar Steel Ltd. Ors. Company Appeal (AT) (Ins.) No.242 of 2019 etc. decided on 4th July, 2019. It was further submitted that the impugned order is non-speaking one and the Adjudicating Authority has not said as to how the Resolution Plan satisfies Section 30(2) of the I B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (Corporate persons herein), to promote entrepreneurship availability of credit and balance interest of such persons (Creditors)/ stakeholders. The maximization of value of assets of the Corporate Debtor as also the maximization of the assets of the Financial Creditors and the Operational Creditors , are the basic essence of the I B Code. Section 30(2)(b) of the I B Code, as latest amended and applicable, reads as follows: - 30. Submission of resolution plan.-(1) A resolution applicant may submit a resolution plan along with an affidavit stating that he is eligible under section 29A to the resolution professional prepared on the basis of the information memorandum. (2) The resolution professional shall examin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itors is being much less than the Liquidation Value , such Plan cannot be accepted. 14. For the reasons aforesaid, we set-aside the impugned order dated 25/27th June, 2019 ordering approval the Resolution Plan , but do not interfere with the impugned order dated 25th/27th June 2019 by which the application filed by M/s. Dhanuka Laboratories Ltd., a Resolution Applicant was rejected. 15. The Company Appeal (AT) (Insolvency) No.761 of 2019 is allowed. Company Appeal (AT) (Insolvency) No.762 of 2019 is dismissed. The matter stands remitted to the Adjudicating Authority for decision in accordance with law. As the approved Resolution Plan has been set-aside by this Appellate Tribunal, no costs. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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