TMI Blog2021 (1) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... olution plan. The resolution plan shall be approved with modifications, which shall be binding on the corporate debtor and its employees, members, creditors, guarantors, resolution applicant and other stakeholders involved in the resolution plan. Resolution plan is approved - application allowed. - M. A. No. 422 of 2019 in C. P. (IB) No. 241/MB/2018 - - - Dated:- 2-7-2020 - Smt. Suchitra Kanuparthi Judicial Member And V. Nallasenapathy Technical Member For the Applicant : Gaurav Joshi , Senior Counsel with Nirav Parmar instructed by Roshab Thackor For the Resolution Applicant : Ashish Kamat instructed by Vesta Legal For the CoC. : Rohit Gupta instructed by V. Deshpande ORDER V. NALLASENAPATHY (TECHNICAL MEMBER) .- 1. This miscellaneous application (M. A.) No. 422 of 2020 is filed by Ms. Sujata Chattopadhyay, the applicant/resolution professional, under section 30(6) of the Insolvency and Bankruptcy Code, 2016 (the Code), seeking approval of the resolution plan by this Adjudicating Authority, as approved by the members of committee of creditors (CoC) with 100 per cent. voting share, for the resolution of the corporate debtor submitted by co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and Starr Oxochem P. Ltd. 9. In the 8th CoC meeting held on November 11, 2019 the RP confirmed that both the plans were accompanied with an affidavit stating that the resolution applicants were eligible under section 29A, the resolution plans were prepared on the basis of the information memorandum and fulfils all the requirements of section 30(2) of the Code. 10. The applicant submits that the liquidation value of the assets of the corporate debtor as ascertained by the two valuers, i. e., GAA Advisory LLP and BKC Advisors P. Ltd., was ₹ 84.12 crores and ₹ 92.01 crores respectively, with the average liquidation value being ₹ 88.07 crores. 11. The CoC considered and deliberated on the two resolution plans submitted by the two resolution applicants in the meeting held on November 11, 2019 and requested both the resolution applicants to improve the financial offer. Since the improved resolution plans of both the applicants were far less than the liquidation value, the CoC decided to issue a fresh invitation for EoI and accordingly EoI in form G was published on November 27, 2019 wherein the last date for submission of resolution plan was January 12, 2020. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.91 On 50th day from effective date (priority) Unsecured financial creditors - - - - - Any other contingent liability - - - - - 15. It is submitted that the successful resolution applicant, SSCPL Consortium, has submitted an affidavit confirming that it is not prevented from submitting the resolution plan as a result of section 29A of the Code. 16. A certificate, i. e., form H under regulation 39(4) of the CIRP Regulations certifying that the resolution plan as approved by the CoC meets all the requirements of the Code and Regulations is also annexed with the application as annexure Q. 17. The resolution plan proposes for appointment of monitoring agency for ensuring smooth implementation of the plan. 18. The resolution plan addresses the interests of all stakeholders. 19. Section 30 of the Code provides as below : (1) A resolution applicant may submit a resolution plan to the resolution professional prepared on the basis of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the resolution plan. (3) After the order of approval under sub-section (1),- (a) the moratorium order passed by the Adjudicating Authority under section 14 shall cease to have effect ; and (b) the resolution professional shall forward all records relating to the conduct of the corporate insolvency resolution process and the resolution plan to the Board to be recorded on its database. 21. It is also necessary to refer the provisions of regulations 38 and 39 of the CIRP Regulations to come to a conclusion that requirements of the Regulations are fulfilled and the same reads as below : 38. Mandatory contents of the resolution plan.-(1) The amount due to the operational creditors under a resolution plan shall be given priority in payment over financial creditors. (1A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor. (2) A resolution plan shall provide : (a) the term of the plan and its implementation schedule ; (b) the management and control of the business of the corporate debtor during its term ; and (c) adequate m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long with a compliance certificate in Form H of the Schedule. (5) The resolution professional shall forthwith send a copy of the order of the Adjudicating Authority approving or rejecting a resolution plan to the participants and the resolution applicant. (6) A provision in a resolution plan which would otherwise require the consent of the members or partners of the corporate debtor, as the case may be, under the terms of the constitutional documents of the corporate debtor, shareholders' agreement, joint venture agreement or other document of a similar nature, shall take effect not withstanding that such consent has not been obtained. (7) No proceedings shall be initiated against the interim resolution professional or the resolution professional, as the case may be, for any actions of the corporate debtor, prior to the insolvency commencement date. (8) A person in charge of the management or control of the business and operations of the corporate debtor after a resolution plan is approved by the Adjudicating Authority, may make an application to the Adjudicating Authority for an order seeking the assistance of the local district administration in implementing the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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