TMI Blog2020 (10) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... oting share of financial creditors. Even in that enquiry, the grounds on which the Adjudicating Authority can reject the Resolution Plan is in reference to matters specified in Section 30(2) when the Resolution Plan does not conform to the stated requirements. Application allowed. - IA No. 1176 of 2020 in C.P. (IB) No. 2851/MB/2018 - - - Dated:- 21-9-2020 - Hon ble Janab Mohammed Ajmal, Member (Judicial) And Hon ble Shri V. Nallasenapathy, Member (Technical) For the Applicant : Kinshuk Chatterjee with Akshay Goel Advocates and Bhuvnesh Maheshwari (RP) For the CoC : Deep Roy and Nupur Malde, Advocates For the Resolution Applicant : Mr Vijay Nirani (Representative) ORDER Per : Janab Mohammed Ajmal, Member ( Judicial ) This is an Application under Section 30 (6) of the Insolvency and Bankruptcy Code, 2016 (the Code) by the Resolution Professional seeking approval of the Resolution Plan submitted by the Resolution Applicant Shri Sai Priya Sugars Limited. 2. The facts leading to the Application are as under. Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by this Bench by an order on 21/08/2019 and the Applicant w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount Admitted (INR in Crores) Proposed Schedule of payment Amount Proposed (INR in Crores) CIRP Costs 0.90 To pay CIRP Costs at actual, and in priority over payments proposed to other creditors. 0.90 Secured Financial Creditor (FC) 570.23 To pay the Secured FC upfront, within 30 days from the date of approval of the Resolution Plan by this Tribunal. The distribution would be pro rata in terms of the voting percentage of each Secured FC 54.25 Workmen s Dues 0.20 To pay INR 0.02 Crores towards workmen s dues 0.02 Wages and dues of Employees (other than workmen) 0.30 To pay INR 0.03 Crores towards Employees dues 0.03 Related Party Unsecured Financial Creditors 4.36 No payment towards the dues of related parties of the Corporate Debtor. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of the Code in the following manner: A. Plan provides for the priority payment of CIRP costs in full from the fund to be infused by the Resolution Applicant. B. To pay the Operational Creditors of the Corporate Debtor in the manner indicated supra. It is submitted that the Liquidation Value of the Corporate Debtor is ₹ 28.7 Crores and Fair Market Value is ₹ 80.995 Crores. In view of the fact that the claim of Secured Financial Creditor is ₹ 570.23 Crores, the Minimum Liquidation Value to the Operational Creditors would be NIL. However, a sum of ₹ 4.83 Crores is provided to all the Operational Creditors. 6. It is submitted that IFCI Limited one of the Financial Creditors with voting share of 4.79% in the CoC abstained from voting and the said Creditor is treated as dissenting Financial Creditor and payment is provided to the dissenting Financial Creditor as per Regulation 38(1)(b) and the same will be paid in priority to the other financial creditors. 7. The Karnataka State Co-operative Apex Bank Ltd. vide letter dated 22.11.2019 addressed to the Resolution Professional, has stated that they will consider the request of the Resolution Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the concerned authorities in accordance with law. 11. It is beneficial to refer to the observation of the Hon ble Supreme Court in Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta Ors. (MANU/SC/1577/2019), as under: 67. .. 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. All claims must be submitted to and decided by the resolution professional so that a prospective resolution Applicant knows exactly what has to be paid in order that it may then take over and run the business of the corporate debtor. This the successful resolution Applicant does on a fresh slate, as has been pointed out by us hereinabove. 12. In view of the above ruling of the Apex Court, the Resolution Applicant takes over the Corporate Debtor with all its assets, and liabilities as specified in the Resolution Plan subject to orders passed herein. The Resolution Plan has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gars Limited annexed to the Application is hereby approved. It shall become effective from this date and shall form part of this order. It shall be binding on the Corporate Debtor, its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan. ii. The approval of the Resolution Plan shall not be construed as waiver of any statutory obligations/liabilities of the Corporate Debtor and shall be dealt by the appropriate Authorities in accordance with law. Any waiver sought in the Resolution Plan, shall be subject to approval by the Authorities concerned. As far as the permits held by the Corporate Debtor and the rights and benefits accrued therein, the Corporate Debtor has to approach the authorities concerned for those permits and that the same has to be processed and decision has to be taken by the authorities at the earliest without any delay as the Corporate Debtor is engaged in agricultural industry, lest it would adversely affect the sugarcane farmers in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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