TMI Blog2021 (4) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... vided under Section 31 of the Code. Application allowed. - IA No. 137/MB/2021 in C.P. (IB) No. 1053/MB/2017 - - - Dated:- 25-3-2021 - Janab Mohammed Ajmal , Hon ble Member ( Judicial ) Shri V. Nallasenapathy , Hon ble Member ( Technical ) Appearance For the Applicant : Himself with Kanishk Khetan , Advocate ORDER Per : Janab Mohammed Ajmal , Member ( Judicial ) This is an Application under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (the Code) seeking approval of the Resolution Plan submitted by the Successful Resolution Applicant namely P K Hospitality Services Private Limited. 2. The facts leading to the Application are as under. a. Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated upon admission of a Petition under Section 10 of the Code by this Bench by order dated 16.06.2017. Mrs. Jayashree Shukla Dasgupta was appointed as the Interim Resolution Professional (IRP). The IRP published public announcement on 30.06.2017, 02.07.2017 and 03.07.2017, inviting claims from the creditors of the Corporate Debtor. After receipt of claims, the IRP constituted the Committee of Creditors (CoC) of the Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. In the meanwhile, the Applicant received a claim from the RP of Paisalo Digital Limited and accordingly the Applicant reconstituted the CoC, recognising Paisalo Digital Limited as one of the Financial Creditors. 8. On 05.11.2020 in the 12th meeting of the CoC 4 out of the 6 PRAs were finalised. However, before the last date for submission of Resolution Plan all PRAs except Om Shri Shubh Labh Agritech Private Limited (Om Shri Shubh) withdrew their EoIs. At the same time the Applicant received an email from P K Hospitality Services Private Limited (P K Hospitality) requesting time for submission of fresh Resolution Plan as Earnest Money Deposited (EMD) submitted earlier was already with the Applicant. Therefore, the CoC in its 12th meeting considered the said request and resolved to extend 7 days time for submission of Resolution Plans by P K Hospitality and Om Shri Shubh. 9. The Applicant had filed an Application before this Tribunal for extension of two months time to complete the CIRP which was allowed by this Tribunal vide order dated 08.02.2021. 10. The CoC in its 13th to 17th meetings considered the Resolution Plans received from Om Shri Shubh and P K Hospital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 14 ICICI Bank Limited 0.70 - - 0.70 15 SICOM Limited 5.33 - - 5.33 16 CANBANK FACTORS Limited 0.53 - - 0.53 17 Paislo Digtal Limited 1.55 1.55 - - Total 100 88.78 - 11.22 13. Salient features of the Resolution Plan: a. SUCCESSFUL RESOLUTION APPLICANT: The SRA is one of the companies of the Garuda Group. The SRA has experience in the hospitality industry like food and beverages, retail of ethnic wear, hotel, infrastructure and real estate, construction, restaurants and food business. The net worth of the SRA is 188.75 Crores. b. TERM OF RESOLUTION PLAN: The date of commencement of the implementation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii. Financial Creditor: The total amount of ₹ 29.09 Crores of Financial Creditors to be paid within 180 days from the date of approval of the Resolution Plan. It shall be after the payment of CIRP costs, Labour Liabilities and payments to be made to Dissenting Financial Creditors, if any. d. INFUSION OF FUNDS: The total amount of Resolution Plan is ₹ 31.59 Crores, out of which the SRA will infuse ₹ 26.06 crores as Share Capital and ₹ 5.53 Crores as Unsecured Loan. e. REDUCTION of SHARE CAPITAL It is proposed to reduce the paid-up share capital of the Company (Corporate Debtor) from ₹ 26,16,41,500/- to ₹ 10,46,570/- thereby reducing the existing paid-up share capital by approximately 99.60%. Further shares with face value of ₹ 10/- to be allocated against the reduced capital of ₹ 10,46,570/- which will result in 1,04,657 shares. f. MANAGEMENT OF THE CORPORATE DEBTOR: The SRA proposes to appoint Mr. Pravin Agarwal as Manging Director and Mr. Ram Niranjan Bhutra as Non-Executive Independent Director of the Corporate Debtor, within 90 days of approval of the Resolution Plan. g. SUPERVISION OF THE RESOLUTION PLAN: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Creditor (Regulation 38(1)(a)). b. The Plan provides for payment of the liquidation value to the Financial Creditors who abstained from voting during the approval of the Resolution Plan, in priority to the assenting Financial Creditors, in compliance of Regulation 38(1)(b) of the Regulations. c. Declaration by the Resolution Applicant that the Resolution Plan has considered the interest of all the stakeholders of the Corporate Debtor, keeping in view the objectives of the Code (Regulation 38(1A)). d. Declaration by the SRA that neither the Resolution Applicant nor any of his related party has either failed or contributed to the failure of the implementation of any other approved Resolution Plan (Regulation 38(1B)). e. The plan also provides for term and implementation schedule, management and control of the Corporate Debtor and adequate means for supervising its implementation (Regulation 38(2)). f. The Resolution Plan also addresses the cause of default, feasibility and viability, as required under Regulation 38(3). 16. The SRA has sought certain waivers such as waiver of statutory liabilities/contingent and/or other liabilities. As far as liabilities are conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submit the same to the Adjudicating Authority (NCLT). On receipt of such a proposal, the Adjudicating Authority is required to satisfy itself that the Resolution Plan as approved by CoC meets the requirements specified in Section 30(2). The Hon ble Court observed that the role of the NCLT is no more and no less . The Hon ble Court further held that the discretion of the Adjudicating Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan as approved by the requisite percent of voting 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. 22. In CoC of Essar Steel (supra) the Hon ble Apex Court clearly laid down that the Adjudicating Authority would not have power to modify the Resolution Plan which the CoC in their commercial wisdom have approved. In para 42 Hon ble Court observed as under: Thus, it is clear that the limited judicial review available, which can in no circumstance trespass upon a business decision of the majority of the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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