TMI Blog2021 (4) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... ercising its commercial wisdom approved the Resolution plan with requisite majority. The Resolution Plan has been approved by the CoC in the 12th meeting held on 09.11.2019 with 73.15% votes. In K Sashidhar v. Indian Overseas Bank Others [ 2019 (2) TMI 1043 - SUPREME COURT] the Hon ble Apex Court held that if the CoC had approved the Resolution Plan by requisite percent of voting share, then as per section 30(6) of the Code, it is imperative for the Resolution Professional to 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 - In COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA OTHERS [ 2019 (11) TMI 731 - SUPREME COURT] 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. The instant Resolution Plan meets the requirements of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07.08.2019 with majority of 77.04% voting share authorised the RP to seek extension of the period of CIRP by 90 days. This Authority by an order dated 26.08.2019 in IA No. 2755 of 2019 extended the period of CIRP by 90 days up to 10.10.2019. The seventh meeting of the CoC held on 16.08.2019 discussed the Plan submitted by Dilesh Roadlines Private Limited and requested them to enhance the bid value as the amount offered was much less than the liquidation value of the CD. iv) The CoC decided to seek fresh EoI on 16.09.2019 and received two EoIs from (i) Dilesh Roadlines Private Limited jointly with Mr. Surji D. Chheda Ms. Chhaya S. Chheda; and (ii) Marshal Vinimay Private Limited jointly with Mr. Aashish Karia. The Applicant made necessary observations and asked for the required modifications. The Applicant submitted that the financial offer made by the RAs were not satisfactory and requested them to revise their financial offer. The RAs submitted their revised Resolution Plans and the Applicant after examining both the plans, allotted scores to the Plans of the RAs. The CoC once again requested the RAs to improve upon their financial offer. The RAs however were not interested t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Non-Core Assets of the CD at about ₹ 12 Crores from which ₹ 6 Crores to be paid within 9 months from the date of the approval of the Resolution Plan and another ₹ 6 Crores within 15 months from the date of the approval of the Resolution Plan. An amount of ₹ 7.81 Crores shall be infused/raised within 21 months from the date of approval of the Resolution Plan towards the balance payment to the Secured Financial Creditors. A further amount of ₹ 5 Crores would be infused/raised towards the working Capital of the CD. viii) This Bench had sought query for sources of funds of the Resolution Applicant to be infused in the Corporate Debtor especially in respect of stated ₹ 7.81 Crores as above. The Counsel for the Applicant filed an Additional Affidavit dated 08.01.2021 clarifying the query. On perusal of the Audited Financial Statement as on 31.03.2020 the net worth of the Resolution Applicant Dilesh Roadlines Private Limited is ₹ 56 crores and non-current investments of ₹ 19.44 crores (market value of which is ₹ 125 crores). Further as per the provisional Financial Statement as on 30.09.2020 the net worth of the Resolution Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows: (4) The committee of creditors may approve a resolution plan by a vote of not less than sixty-six percent. of voting share of the financial creditors, after considering its feasibility and viability, the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53, including the priority and value of the security interest of a secured creditor and such other requirements as may be specified by the Board. 6. Section 30(6) of the Code enjoins the Resolution Professional to submit the Resolution Plan as approved by the CoC to the Adjudicating Authority. Section 31 of the Code deals with the approval of the Resolution Plan by the Authority, if it is satisfied that the Resolution Plan as approved by the CoC under section 30(4) meets the requirements provided under section 30(2) of the Code. Thus, it is the duty of the Adjudicating Authority to satisfy itself that the Resolution Plan as approved by the CoC meets the above requirements. 7. On perusal of the Resolution Plan, it is observed that the Resolution Plan provides for the following: a) Payment of CIRP Cost as specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Resolution plan with requisite majority. The Resolution Plan has been approved by the CoC in the 12th meeting held on 09.11.2019 with 73.15% votes. 11. In K Sashidhar v. Indian Overseas Bank Others (in Civil Appeal No. 10673/2018 decided on 05.02.2019) the Hon ble Apex Court held that if the CoC had approved the Resolution Plan by requisite percent of voting share, then as per section 30(6) of the Code, it is imperative for the Resolution Professional to 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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