TMI Blog2020 (10) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... -6-2020 - Ch. Mohd. Sharief Tariq , Member ( J ) And Kapal Kumar Vohra , Member ( T ) For the Appellant : G. P. Madaan, Utkarsh Mishra, Pankhuri Kaur Rehsi, Aditya Madaan, Advocates, Karunesh Tandon For the Respondent : Kamini Tandon and Chandrashekhar Goswami through Tandon law Associates ORDER Ch. Mohd. Sharief Tariq , Member ( J ) 1. By way of present CA-799/C-III/ND/2019 filed in CP No. 33/ND/2018, the Resolution Professional viz., Mr. Avineesh Matta has submitted the Resolution Plan approved by the Committee of Creditors (CoC) and prayed for approval of the same under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as IBC, 2016). 2. Before this Authority proceeds to examine the Resolution Plan, it is necessary to deal with the objection raised by one of the Operational Creditors viz., Jay Ace Technologies Limited (herein referred as OC). The OC has submitted that the Resolution Applicants viz., Mr. Mukesh Gupta and Mr. Krishan Bansal in terms of Section 5(24) of the IBC, 2016 are related parties and is barred under Section 29A of the IBC, 2016. The Resolution Plan is sham and collusive in its nature, as the voting s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (IB) No. 330 (ND)/2018 was filed by the Operational Creditor viz., Jay Ace Technologies Limited under Section 9 of the Code read with Rule 6 of the Insolvency and Bankruptcy Board (Application to Adjudicating Authority) Rules, 2016 for initiating the Corporate Insolvency Resolution Process against the Corporate Debtor namely Micromax Energy Limited (hereinafter referred as Corporate Debtor ). 6. The said Application was admitted by this Adjudicating Authority vide Order dated 17.12.2018 and Mr. Avineesh Matta (IP Registration Number IBBI/IPA-001/IP-P00610/2017-2018/11070) was appointed as the Interim Resolution Professional. Pursuant to the Order dated 17.12.2018, the IRP/Applicant had immediately made a Public Announcement in accordance with Section 15 of the Code. 7. On 28.01.2019, the Committee of Creditors (herein after referred to as CoC ) unanimously approved the appointment of Interim Resolution Professional as Resolution Professional in the second meeting of the Committee of Creditors. 8. In 9th meeting of the CoC held on 07.08.2019 the following resolutions were passed: - RESOLVED THAT pursuant to the applicable provisions of Insolvency and Bankruptcy Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorized to make any corrections, modifications or alterations as is deemed fit by him to comply with the regulatory framework governing the Corporate Insolvency Regulation Process including the date lines in accordance therewith. The above-mentioned resolution was passed with a voting percentage of 85.70%. 11. The 11th meeting of the CoC was held on 24.10.2019 wherein the Resolution Professional apprised the members of the CoC that out of four eligible prospective resolution applicants (PRAs), who were part of the final list of PRAs, two PRAs namely, Shri Mukesh Gupta and Shri Krishna Bansal jointly submitted a Resolution Plan along with Performance Security amount. The Resolution Plan was circulated on 23.10.2019 to all the CoC members through email. After deliberations on the same the agenda item i.e., to present the Resolution Plan received, before CoC and to consider approval of the same, if found compliant was put up for voting and resolution passed by the members of the CoC is as follows: - RESOLVED THAT the Resolution Plan being compliant with the laid down regulatory framework under the Code, as submitted by the Joint Resolution Applicants, Shri Mukesh Gup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the related partied submitted. Other Issues: a. All past unclaimed debts for which claims not filed or filed but not admitted by RP will stand extinguished. b. No change in management or capital structure is proposed. c. One of the resolution applicants' viz., KB to be appointed on Board of CD within 60 days of the approval of the Resolution Plan. d. Joint Resolution Applicants propose to exit LA (lead acid) battery business in CD. e. No reduction in claims already admitted. 13. It is specifically noted that the Joint Resolution Applicants propose to exit LA (lead acid) battery business in CD and switch over to lithium business, with respect to which the Directors of the Corporate Debtor and one of the Resolution Applicants namely, Mr. Makesh Gupta have considerable experience in the lithium Industry and have great chances of success. The Corporate Debtor has the necessary ICAT Certifications for lithium business. The GST Registrations are also in place, thus, no approval from government or statutory body would be required to restart the business. 14. The Resolution applicants have filed the Affidavits stating that at the time of submission of Resolutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest of all the stakeholders. Section 30(2)(b) of the I B Code, 2016 And Regulation 38(1) of IBBI (Insolvency Process for Corporate persons) Regulations, 2016 The Resolution Plan provides for the payment of 100% of the admitted claims of the Operational Creditor including those of the Employee and Workmen, which is much more than the amount paid to the Operational Creditor in the event of liquidation of the Corporate Debtor. Not Applicable as there are no financial creditors Section 30(2)(c) and Section 30(2)(d) of the I B Code, 2016, And Regulation 38(2) of IBBI (Insolvency Process for Corporate persons) Regulations, 2016 The Resolution Plan provides that there will be no change in management or capital structure by the Resolution Applicants during the plan period. Mr. KrishanBansal to be appointed on Board of Corporate Debtor within 60 days of approval The implementation of plan as stated by the Resolution Applicants in the Resolution plan is 30 days from the approval. Section 30(2)(e) of the I B Code, 2016 The Resolution Plan does not contravene any ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
