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TMI Blog2020 (2) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... ;Corporate Insolvency Resolution Process' of 'Ruchi Soya Industries Limited', the 'Committee of Creditors' by majority decision approved the 'Resolution Plan' submitted by 'Patanjali Ayurved Limited'. When the matter was placed before the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, the Adjudicating Authority by impugned order dated 24th July, 2019 taking into consideration the relevant facts and that the plan is in accordance with Section 30(2) approved the 'Resolution Plan'. 2. Learned counsel for the Appellant submitted that the 'Resolution Plan' submitted by 'Patanjali Ayurveda Limited' envisaged the payment of Rs. 4134 Crores to the 'Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; ** (2) The resolution professional shall examine each resolution plan received by him to confirm that each resolution plan - (a) provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the [payment] of other debts of the corporate debtor; (b) provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than- (i) the amount to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or (ii) the amount that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as amendment to Section 30(2) of the 'I&B Code' is concerned, the learned counsel for the 'Committee of Creditors' relied on 'Explanation 2' below to Section 30(2)(b), which reads as under: "Explanation 2. - For the Purposes of this clause, it is hereby declared that on and from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019, the provisions of this clause shall also apply to the corporate insolvency resolution process of the corporate debtor- (i) where a resolution plan has not been approved or rejected by the Adjudicating Authority; (ii) where an appeal has been preferred under section 61 or section 62 or such an appeal is not time barred under any provision of law for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;ble Tribunal is empowered to review this issue, to determine if it is compliant with law." As the Appellant is not challenging the 'Resolution Plan', the question of applicability of amended Section 30(2) does not arise. 8. The manner in which the amount is to be distributed has been prescribed under amended sub-section (4) of Section 30, is as under: "30 (4) The committee of creditors may approve a resolution plan by a vote of not less than [sixty-six] per cent. of voting share of the financial creditors, after considering its feasibility and viability, [the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53, including the priority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded sub-Section (4) of Section 30 came into force since 16th August, 2019. It has not been given retrospective effect but is prospective. Therefore, if the distribution is to be made by the 'Committee of Creditors', it is not necessary to follow the amended sub-section (4) of Section 30, though it was open to the 'Committee of Creditors' to follow the same principle. Therefore, the distribution cannot be alleged to be in violation of the amended sub-section (4) of Section 30. As per amended Section 30(2)(b)(ii), the distribution is to be made in the manner as prescribed under Section 53(1) giving preference to the secured creditor. However, even at that stage no discrimination can be made between two similarly situated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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