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TMI Blog2020 (12) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... the Corporate Debtor which was admitted on 02.05.2019 by this Adjudicating Authority. The Applicant was appointed as Interim Resolution Professional (hereinafter referred as "IRP"). The IRP issued public announcement in form A as per Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016 inviting claims from the Creditors of the Corporate Debtor. 2.2 That the last day of submission of claims was 17.05.2019 and on 27.05.2019, IRP submitted the report certifying the constitution of Committee of Creditors (hereinafter referred as "CoC") as per Regulation 17(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016. 2.3 In the 1st CoC meeting held on 31.05.2019, IRP was appointed as the Resolution Professional (hereinafter referred as "RP") with the consent of 90.40% CoC members in favour. 2.4 Even after the last date of submission of claims i.e. 17.05.2019, IRP received several claims till 03.07.2019. The list of claims are given herein below- S. No. Name of Creditor Voting Right 1. Agencies (Rajastha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lan needs some improvement with respect to maximum realization of assets and therefore, decided to re-issue EoI. After the re-issuance of EoI, prospective Resolution Applicants submitted the revised Resolution Plans with the following improvements: i. PLASTENE INDIA LIMITED The prospective Resolution Applicant revised its bidding offer to Rs. 39.60 crores plus interest @ 10% P.A. Moreover, it reduced payment terms to 3 years. ii. AMRUT POLYMERS Prospective Resolution Applicant improved its offer to 31 crores. After reviewing the existing Resolution Plans, CoC was of the opinion that EoI must be open to other bidders as well so that new Resolution Plans can be in consideration along with the existing Resolution Plans. 2.9 In the 8th CoC meeting held on 30.12.2019, RP informed that no further Plan was received and CoC was left with 2 prospective Resolution Applicants namely, Plastene India Limited and Amrut Polymers. Since, Amrut Polymers showed its unwillingness to continue with its Resolution Plan, CoC is left with 1 plan i.e. Plastene India Limited. 2.10 Accordingly, in 9th CoC meeting the Resolution Plan was approved by 91.28% voting while rest of the members remained absta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; T+30 Days Section 3.5 of the Resolution Plan Section 3.5 of the Resolution Plan It includes issue of zero-coupon non-convertible debenture of Rs. 1.60 Crores repayable in three years from the date of approval of plan. RA will infuse the requisite amount Financial Creditors from Related Parties Nil - - - Provision for Contingent Liabilities 0.02 Crores As and when materialize - RA will infuse the requisite amount TOTAL PAYMENT 42.08 Crores - - - The RP further proposed the grace period of 60 days for payment over and above 30 days with interest @ 10% in respect of upfront. 3. Heard the Applicant, the present application has been filed for approval of the Resolution Plan under Section 30(6) of the IB Code (as amended upto date) submitted by RP in respect of the Corporate Debtor. The Applicant/the Resolution Professional, deliberating the sequence of events right from calling of EoI up to approval of the Resolution Plan by the CoC in its 9th meeting submitted the Resolution Plan duly approved by the CoC by 91.28% in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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 time being in force; or (iii) where a legal proceeding has been initiated in any court against the decision of the Adjudicating Authority in respect of a resolution plan;] (c) provides for the management of the affairs of the Corporate debtor after approval of the resolution plan; (d) the implementation and supervision of the resolution plan; (e) does not contravene any of the provisions of the law for the time being in force; (f) conforms to such other requirements as may be specified by the Board. [Explanation.--For the purposes of clause (e), if any approval of shareholders is required under the Companies Act, 2013(18 of 2013) or any other law for the time being in force for the implementation of actions under the resolution plan, such approval shall be deemed to have been given and it shall not be a contravention of that Act or law.]" 5. During the course of arguments, Resolution Applicant filed an addendum dated 20.07.2020 to the Resolut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter of K. Sashidhar Vs. Indian Overseas Bank & Ors. The Supreme Court has observed that National Company Law Tribunal has no jurisdiction and authority to analyze or evaluate the commercial decision of the Committee of Creditors (CoC) to enquire into the justness of the rejection of the Resolution Plan by the dissenting Financial Creditors. Keeping in view such object behind the enactment of the Code, intention of the Legislature, that the priority is to be given to the resolution than liquidation in the larger interests of the public, workmen, stakeholders and the other employees of the corporate debtors in the interest of justice and in order to achieve the object of the Code and liquidation of a company can be only as a last resort, wherein, all efforts for brining Resolution Plan were failed or it cannot be found workable in the larger public interest. Hence, now the approval of Resolution Plan by this Adjudicating Authority is rule as per the apex court's decision in the matter of K. Sashidhar Vs. Indian Overseas Bank & Ors. as discussed above. The Hon'ble Supreme Court in its recent judgment in Civil Appeal No. 10673 of 2018 in K. Sashidhar Vs. Indian Overse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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