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TMI Blog2021 (4) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... im Resolution Professional (IRP). The Committee of Creditors (CoC) in its second meeting held on 27.03.2019, resolved to appoint Mr. Prashant Jain, the present Applicant as the Resolution Professional (RP). ii) The IRP engaged two registered valuers under Regulation 27 of the Regulations, to determine the fair and liquidation value of the CD in accordance with Regulation 35 of the Regulations. The CoC approved the process and evaluation criteria for evaluating a Plan in accordance with requirements of the Code. The notice seeking Expression of Interest (EoI) was published on 17.05.2019 in the Business Standard, all India Edition, in Navshakti Mumbai Edition and in Jandesh, Silvassa Edition. In response, two (2) Prospective Resolution Applicants (PRAs) furnished EoIs. Last date for submission of Plan was 18.07.2019. The Applicant received request to extend the last date for submission of the Plan. Accordingly, the Applicant sought approval from the CoC and extended the time line for submission of the Plan till 05.08.2019. On submission of the Plans the CoC evaluated them. iii) The term of the CIRP (180 days) was due to expire on 12.08.2019. The CoC in its sixth meeting on 07.08. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 1.00 Crore 1.00 Crore 2. Secured Financial Creditors 65.79 25.90 Crores 6.09 Crores 3. Unsecured Financial Creditors 50.33 1.26 Crores 1.26 Crores 4 Employees/Workmen 0.82 1.25 Lakhs 1.25 Lakhs 5. Operational Creditors 7.26 0.15 Lakhs 0.14 Lakhs 6. Statutory Liabilities 25.50 0.51 Lakhs 0.51 Lakhs Total 150.7 30.07 Crores 10.25 Crores vii) It is also submitted by the Applicant that the RA has proposed to raise funds by way of sale of the Non-Core Assets of the CD at about Rs. 12 Crores from which Rs. 6 Crores to be paid within 9 months from the date of the approval of the Resolution Plan and another Rs. 6 Crores within 15 months from the date of the approval of the Resolution Plan. An amount of Rs. 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 Rs. 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 Rs. 7.81 Crores as above. The Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Companies Act, 2013 (18 of 2013). 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) Confirms to such other requirements as may be specified by the Board. 5. Section 30 (4) of the Code reads as 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 Resolutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebt amount or approx. 60% of the Resolution Plan value. In case the SRA could not realise, monetise the said amount of Rs. 12 crores, how the shortfall will be met, alternate funding mechanism (time frame within which period the said amount will be paid) etc, are not provided in the CoC approved plan. However, the CoC after exercising 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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