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TMI Blog2021 (4) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the CIRP of the Corporate Debtor has been conducted in compliance with the provisions of the Code and the Rules framed there under. The Committee of Creditors (CoC) of the Corporate Debtor consists of only one unrelated Secured Financial Creditor viz., Axis Bank Limited. 3. During the CIRP, two Resolution Plans were received by the Applicant, respectively from M/s Majestic Auto Limited (Majestic) and Romell Real Estate Private Limited. The CoC after several rounds of negotiations with the Resolution Applicants evaluated both the Plans as per the Evaluation Matrix. The CoC accepted the Resolution Plan submitted by Majestic, the highest bidder (H1). After due verification of the eligibility of the Successful Resolution Applicant in terms of Section 29A of the Code, the CoC in its 9th meeting held on 30.01.2020 considered the Resolution Plan submitted by Majestic and approved the same with 100% voting. 4. Upon perusal of the Resolution Plan, during the hearing this Bench made a specific query as to how the Resolution Plan could provide a stipulation that if sufficient cash flow was not available in the Company to pay off the CIRP costs, the amount payable to the Unsecured Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Estate Private Limited 85,50,000/- Sheth Developers Pvt Ltd. 1,56,00,000/- Viacom Media 18 Pvt. Ltd. 1,92,77,910/- Total 6,03,76,146/- 6. Mode of infusion of Fund: Rs.. 5.00 crores by way of Share Capital from the Resolution Applicant and the balance of Rs.. 76.84 crores by way of unsecured loan to be provided by the Resolution Applicant. 7. Financial Status of the Resolution Applicant: i. The Resolution Applicant is a Public Limited Company incorporated on 23rd April 1973. It is engaged in the business of leasing/renting commercial properties and facility management and real estate. The Resolution Applicant in the last 4 years has acquired similar businesses like the Corporate Debtor and has the ability to manage the Company efficiently and profitability. ii. The entire sum of Rs.. 81,84,10,538/- (Rupees Eighty One Crores Eighty Four Lacs Ten Thousand Five Hundred and Thirty Eight only) will be arranged by the Resolution Applicant from its own funds/resources. It has total assets of over Rs.. 362,98,02,000/- (Rupees Three Hundred Sixty Two Crores Ninety Eight Lakh and Two Thousand only) including investments and current assets of approximately Rs.. 237,20, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an provides for appointment of new Board of Directors for implementation and supervision of the plan. It provides that the Resolution Professional shall act as a monitoring agent in consultation with the CoC to run the Corporate Debtor as a going concern from the date of approval of Plan by the Tribunal till the effective date. 12. It is submitted that the implementation of the Resolution Plan is dependent on vacation/modification of the stay orders dated 13 November 2018 and 27 September 2019 ('Stay Orders') passed by the Hon'ble High Court of Delhi in IA Nos. 14554/2018 and 14553/2018 in the matter of Daiichi Sankyo Company Limited v. Malvinder Mohan Singh & Ors. (OMP (EFA)(COMM.) 6/2016) ('Daiichi proceedings'). The Corporate Debtor was made a garnishee vide a separate order dated 28 May 2019 passed in the Daiichi proceedings. Subsequently, under the Stay Orders, interim injunctions were passed against the Corporate Debtor in relation to its assets. 13. Pursuant to the above, the Applicant, on behalf of the Corporate Debtor had filed an application being EA No 861/2019 in the Daiichi proceedings seeking vacation and/or modification of the Stay Orders. However, in view of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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). 17. The Resolution Applicant takes over the Corporate Debtor with all its assets, and liabilities as specified in the Resolution Plan subject to orders passed herein. 18. No concessions / waivers claimed / stated in the Resolution Plan are granted. The Resolution Applicant shall make appropriate applications to the authorities concerned and get the approvals etc. Such Authorities may keep in mind the broad objective of the Code while considering the applications. As far as the carry forward of losses of the Corporate Debtor is concerned, the same will be subject to the approval of the Income Tax Authority concerned under the Income Tax Act. 19. In view of the discussions and the law thus settled, we are satisfied that the Resolution Plan as approved by the CoC under Section 30(4) of the Code meets the requirements of Section 30(2) of the Code and Regulations 37 & 38 of the Regulations. The Resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X
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