9911796707
TMI Blog2020 (5) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. (herein after referred as "Corporate Debtor" which said application was admitted on 26/04/2019 by this Adjudicating Authority and accordingly IRP was appointed. 2.2. That IRP, so appointed made a public announcement in the newspapers inviting the claims from different creditors /stakeholders of the company on 07-05-2019.The IRP received claims from the creditors/stakeholders of the Corporate Debtor and in pursuant to section 21 of the Code, Committee of Creditors (herein after referred as "COC") was constituted, the report of the said constitution of the COC submitted before the Adjudicating Authority on 18/11/2019. On constitution of the COC IRP has received claim from different creditors/stakeholders amounting to Rs. 2,64,03,04,295.53 but had admitted the claims for an amount of Rs. 1,41,76,23,683.06 only, which said list of the claimants/creditors are annexed along with the application as Annexure 2.3. As on 12-02-2020 the member of the COC are UCO Bank as well as SBI, the detail of the Financial Creditor and their voting share is given here under : Sr. No Financial Creditors Votingshares 1 UCO Bank , Zonal office Ashram Road , Ahmedabad-380009 83.31 % 2 SBI Stres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh and examined the Resolution Plan along with documents and annexures. On perusal, it is found that the Resolution Plan is in compliance of the statutory requirements, as per IBC Code, for the sake of brevity the same is produced here in below:- Sr. No. Section of the Code/ Regulation No. Requirement with respect to Resolution Plan Clause of Resolution Plan Compliance (yes/no) 1. Section25(2)h Whether the resolution applicant meets the criteria approved by the COC having regard to the complexity and scale of operations of the business of the CD? Clause 3 Yes 2. Section 29A Whether the resolution applicant is eligible to submit resolution plan as per final list of Resolution Professional or order, if any, of the Adjudicating Authority? Yes Yes 3. Section 30(1) Whether the resolution applicant has submitted an affidavit stating that is eligible? Yes Yes 4. Section 30(2) Whether the Resolution Plan : a) Provides for the payment insolvency of resolution process costs? 4.3 Yes b) Provides for the payment to the operational creditors? 4.4&4.6 Yes c) Provides for the payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g implementation? 5 5 7 Yes Yes Yes 12. Regulation 38(3) Whether the resolution plan demonstrates that - (a) It addresses the cause of default? (b) It is feasible and viable? (c) It has provisions for its effective implementation? (d) It has provisions for approval required and the timeline for the same? (e) The resolution applicant has the capability to resolution plan? 4.2.1 Yes Yes Yes Yes Yes 13. Regulation 39(2) Whether the RP has filed applications in respect of transactions observed, found or determined by him? No Yes 14. Regulation 39(4) Provide details of performance security received, as referred to in sub- regulation (4A) of regulation 36B. BG OF Rs. 6.25 Crores Yes 5. On perusal of the record it is also seen that resolution applicant has provided an affidavit stating that he is eligible under section 29A of the Code. The copy of the said affidavit dated 17.12.2019 is annexed at Annexure -ZI 6. Further on perusal of the record it is found that the Resolution Plan is in conformity of section 30 (2) of the IBC and Regulation 38 of the CIRP Regulations. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as set out in Para 4.2.3 of Plan; b) to the financial creditors, who have a right to vote under sub- section (2) of section 21 and did not vote in favour of the resolution plan, shall be paid in priority over financial creditors who voted in favour of the plan as set out in Para 4.2.3 of Plan; 1 (a). The resolution plan includes a statement as to how it has dealt with the interest of all stakeholders, including financial creditors and operational creditors, of the corporate debtor as set out in Para 4.18 of Plan. (2) The plan provides for: a) the term of the plan and its implementation schedule as set out in Para 5 of the Plan; b) management and control of the business of the corporate debtor during its term as set out in Para 7 of the Plan; and c) adequate means for supervising its implementation as set out in Para 7 of Plan. (3) The plan demonstrates that: a) the cause of default has been addressed; b) it is feasible and viable ; c) it has provisions for its effective implementation; d) it has provisions for approvals required and the timeline for the same; e) the resolution applicant has the capability to implement the resolution plan. 7. On perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the concerned Competent Authorities having their proper /own jurisdiction to pass any appropriate order as the case may be. The Resolution Applicant on approval of the Plan may approach those Competent Authorities/Court/Legal Forums/Offices-Govt., or Semi- Govt./State or Central Govt., and Local Authority(s)/Body(s) for appropriate relief(s) sought in clause 11, 11.1, (a) to (p) (page no 372 to 376) (Vol-iii) of the Plan. 12. Thus, not allowing the above said "Extinguishment, Waiver of Claims, Liabilities and Reliefs Sought" as claimed by Resolution Applicant in Resolution Plan, is not going to make any hindrance for proper implementation of the Resolution Plan as those are the subject matter of the concerned/appropriate Competent Authorities. The Resolution Applicant(s) has/have liberty to approach Competent Authorities for any concession, relief or dispensation as the case may be as when required for proper and effective implementation of the Plan. 13. During the pendency of the instant application, Three(3)persons viz; (i) Central India Agencies Ltd, (ii) Ipro Capital and (iii) Ganga Properties Pvt ltd., sought to intervene and/or to file objections. However, on 29/04/2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 365 days in part payment of 2nd tranche amount were not convincing at all" (sic). Thus it is found that SBI has partially agreed for concession in time frame of payment, so sought for by the Resolution Applicant, however has reservation for grant of any concession/relaxation in time line for payment towards 2nd tranche. For the sake of convenience, "The revised /modification in the time line for the payment", on account of pandemic of Covid-19 Virus as under: i. The Resolution Applicant vide in affidavit dated 29/04/2020 had sought certain modification in the timeline for the payment on account of pandemic of COVID-19 virus which is under:- Sr.no Event Estimated timeline 1 Resolution Plan approval by - NCLT. - 2 Infusion of Rs. 95 Crores by the Resolution Applicant for payment towards CIRP costs and settlement of financial and settlement of financial and operational creditors claim as envisaged in the resolution plan. Rs. 27.14 Crores within 90 days of Resolution plan approval date or 15 days after end of lockdown whichever is later, as under. CIRP 11.43 Workmen 1.85 Employees 3.89 Oprational crs 3.97 Statutory Dues 3.00 Financial Cr. 3.00 Total 27.14 B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Policy" in the public interest. The Reserve Bank of India (RBI) announced an extension of the moratorium on loan EM's by three months, i.e. August 31,2020 vide statement on Developmental and Regulatory Policies which sets out various developmental and regulatory policy measures to improve the functioning of markets and market participants; measures to support exports and imports; efforts to further ease financial stress caused by Covid-19 disruptions by providing relief on debt servicing and improving access to working capital; and steps to ease financial constraints faced by State Governments. * As per the Statement on Developmental and Regulatory Policy of the Central Bank, "On March 27,2020, the RBI permitted all Commercial Banks (including Regional Rural Banks, small finance banks and Local Area Banks), Co-operative Banks, all-India Financial Institutions, and NBFCs (including housing finance companies and microfinance institutions) (referred to hereafter as "lending institutions 'f) to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March I, 2020. In view of the extension of the lockdown and continuing disru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onafide, therefore, Resolution Applicant deserves relaxation/concession. Such relaxation in the time frame or timeline for payments is/are not going to change the nature and character of the Plan, moreover such concession/modification is approved by UCO Bank having 83.31% stake, while SBI is having 16.69% stake, but UCO Bank has approved the relaxation, so sought for by the resolution applicant in timeline for the payment. However, SBI though approved its first tranche of payment but have reservation in 2nd tranche of payment. 21. It is pertinent to mention herein that earlier in 12th COC meeting held on 11 .02.2020, COC had unanimously approved the Resolution Plan with 100% voting share. 22. It is needless to mention herein that, the very object of the IBC is, "Resolution is the rule and Liquidation is an exception", liquidation brings the life of a Corporate to an end. It destroys organizational capital and renders resources idle till reallocation to alternate uses. Further, it is inequitable as it considers the claims of a set of stakeholders only, if there is any surplus after satisfying the claims of a prior set of stakeholders fully. The IB Code', therefore does not all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the time being in force within a period of one year from the date of approval of the Resolution Plan by the Adjudicating Authority under section 31 (l) or within such period as provided for in such law, whichever is later or as the case may be. (iv) The Resolution Professional shall forward all records relating to the conduct of the corporate insolvency resolution process and Resolution Plan to the Insolvency and Bankruptcy Board of India to be recorded on its database. 24. In view of the Above, this Adjudicating Authority, is of the considered opinion and also being satisfied that the Resolution Plan as approved by the Committee of Creditors (COC) meets the requirements as provided under section 30(2) of the Code, along with revised/concession/relaxation, so sought for, by Resolution Applicant on the timeline of payment to Financial Creditors/Operational Creditors and/or other stakeholders, as the case may be, which also became part and parcel of Resolution Plan dated 12.02.2020. 25. Accordingly, IA 144/19 is allowed with modifications in the time line for payment to the Financial Creditors/Operational Creditors and/or other stake holders, if any. 26. Other IA's if an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
