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TMI Blog2021 (4) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... ting of the Committee of Creditors (CoC) held on 31.10.2019, the IRP was replaced with the Applicant as the Resolution Professional (RP) of the Corporate Debtor. This Tribunal by order dated 05.02.2020 confirmed the appointment of the Applicant as such. ii. The Applicant filed MA No. 668 of 2020 for extension of CIRP period and for exclusion of 90 days from the CIRP period towards delay in confirmation of the appointment of Applicant as RP by this Tribunal. MA 668/2020 was allowed by this Tribunal vide order dated 26.02.2020 extending the period till 24.08.2020. iii. On 25.02.2020 the Applicant made an advertisement inviting expression of interests (EOIs) from prospective resolution applicants (PRAs). Pursuant thereto, the Applicant received EOIs from two persons and both of them were identified as qualified prospective applicants for participating in the Resolution Plan process of the Corporate Debtor. Therefore, the Applicant suggested the CoC to make another attempt at inviting EOI. Accordingly, on 19.03.2020 the Applicant again made an advertisement inviting EOIs. The Applicant shared with the CoC a provisional list of PRAs on 09.04.2020 and final list of eligible PRAs on 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on). b. TERM OF RESOLUTION PLAN: The term of the Resolution Plan is 12 months. c. MODE OF FINANCE & SCHEDULE: The mode of finance and schedule of the Resolution Plan is as under: (Amount in Lakhs) Sr. No. Sources Proposed Schedule of Payment Amount % 90 days In 6 months 6-12 months Total 1. Equity Funds 50 3.33% 25 25 50 2. Secured Loan 1000 66.67% 200 800 1000 3. Unsecured Loan/quasi equity 450 30.00% 50 400 450 Total 1500 100% 225 875 400 1500 The Resolution Applicant has obtained a sanction letter dated 26.11.2020 issued by Market Purse Global Corporation, for an amount of Rs. 28 Crores to be sanctioned as loan against property in favour of TPIPL. The said sanction letter is considered by the CoC in 12th CoC meeting held on 27.11.2020. d. CAPITAL REDUCTION & EQUITY INFUSION: The existing share capital of the company will be entirely extinguished and the Resolution Applicant acting as New Promoter of the Corporate Debtor will infuse fresh share capital into the Corporate Debtor to the tune of Rs. 50 Lakhs by subscribing to 5 Lakhs fully paid up equity shares of Rs. 10/- each and the share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 Lakhs) subject to actual outstanding dues will be fully paid by the RA in priority of all other creditors within first 3 to 6 months. Note 2 - Financial Creditors: Payment to Financial creditors will be made in multiple instalments within 6 to 12 months maximum. Note 3 - Employees and Workmen dues: The payment for dues of pending Salary, Provident Fund, ESIC, Prof. Tax and others, Employee Society and Gratuity will be made within first 6 months. Note 4 - Operational Creditors: Payment to Operational Creditors including creditors, who have not submitted the claim but shown in Information Memorandum, will be made within first 6 months in priority to Financial Creditors. g. MANAGEMENT & CONTROL OF BUSINESS OF THE CORPORATE DEBTOR: The Board of Directors of the Corporate Debtor will consist of 2 (two) members, as follows: i. Mr. Rajabhau B. Shinde ii. Mrs. Pratibha R. Shinde The Resolution Applicant also proposes to retain all the human resources of the Corporate Debtor and proposes to utilise their talent, expertise and experience for betterment and efficient utilization of the resources of the Corporate Debtor. Resolution Applicant proposes to retain all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Operational Creditors (including Operational Creditors who have not submitted their claims in view of the fact that they are going to be future suppliers). c. Plan provides for the management of the affairs of the Corporate debtor after approval of the Resolution Plan; d. Plan provides for the implementation and supervision of the Resolution Plan; e. The Resolution Applicant has given a declaration that the Resolution Plan does not contravene any provisions of the law for the time being in force. 5. The Resolution Plan is in compliance of the Regulation 38 of the Regulations in terms of Section 30(2)(f) of the Code as under: a) Payment to Operational Creditor will be made in priority over Financial Creditor (Regulation 38(1)(a)). b) Since the plan has been approved by 100% voting share of the CoC, provision of dissenting financial creditor does not arise. This is 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 Resolution Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied in the Resolution Plan subject to orders passed herein. As already indicated the Resolution Plan has been approved by the CoC in its meeting held on 27.11.2020 with 100% votes. 10. In K.Sashidhar v. Indian Overseas Bank & Others: 2019 SCC Online SC 257 (2019) 12 SCC 150) the Hon'ble Apex Court held that if the CoC had approved the Resolution Plan with 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) whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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