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TMI Blog2021 (4) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... ouncement on 09.03.2019 inviting claims from the creditors of the Corporate Debtor. After receipt of claims the IRP constituted the Committee of Creditors (CoC) of the Corporate Debtor on 01.04.2019,State Bank of India being its sole member. The IRP conducted the first meeting of the CoC on 08.04.2019. c. The CoC in its second meeting held on 17.05.2019 passed the resolution to appoint Mr. Nimit Kalsi as Resolution Professional (the erstwhile RP) and the same was confirmed by this Bench vide order dated 15.07.2019. 3. The CoC in its fifth meeting held on 06.08.2019 passed the resolution to extend the period of CIRP by 90 days and exclude 69 days therefrom. The erstwhile RP filed MA No.2778 of 2019 for extension and was allowed by this Bench vide orders dated 12.09.2019 accordingly the CIRP period end on 12.12.2019. Further he filed MA No.3936 of 2019 for exclusion and the same was Allowed by this Bench vide orders dated 20.02.2020. 4. The CoC filed an application MA No. 461 of 2020 to replace the erstwhile RP and to appoint Mr. Vijendra Kumar Jain (Applicant herein) as RP. The same was allowed by this Bench vide order dated 21.02.2020. 5. Since there was no response to the For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost as on date of RFRP 135.97 To be paid in priority on actual basis 2 Employees (Note 1) 666.62 349.59 * 155.04 Lakhs in 0-6 Months * 21.62 Lakhs in 6-12 Months * 21.62 Lakhs in 12-18 Months * 10.81 Lakhs in 18-24 Months * 32.42 Lakhs in 24-30 Months * 108.08 Lakhs in 30-36 Months 3 Operational Creditors who have filed their claims (Admitted Claims) 2964.84 236.26 * 23.63 Lakhs in 0-6 Months * 23.63 Lakhs in 6-12 Months * 23.63 Lakhs in 12-18 Months * 11.81 Lakhs in 18-24 Months * 35.44 Lakhs in 24-30 Months * 118.13Lakhs in 30-36 Months 4 Operational Creditors who did not file their claims 354.01 47.94 * 4.79 Lakhs in 0-6 Months * 4.79 Lakhs in 6-12 Months * 4.79 Lakhs in 12-18 Months * 2.40 Lakhs in 18-24 Months * 7.19 Lakhs in 24-30 Months * 23.97 Lakhs in 30-36 Months 5 Statutory dues - PF/ESIC/PT/LFW 8.79 8.79 0-6 Months 6 Statutory Dues - TDS/ Panchayat Taxes 31.98 1.60 0-6 Months 7 Financial Creditor 5823.87 1327.84 * 132.78 Lakhs in 0 - 6 Months * 132.78 Lakhs in 6 - 12 Months * 132.78 Lakhs in 12-18months * 66.39 Lakhs in 18-24 Months * 199.18 Lakhs in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of assets and enterprise of Corporate Debtor as assessed by SRA does not cover the full claim of FC i.e. SBI, and there is therefore, no amount available for Equity and Preference Share Capital holders of Corporate Debtor. Also, the holders of issued share capital (equity shareholders and preference shareholders) of Corporate Debtor have no amount available to them in the event of its liquidation. In view of the above circumstances, the SRA proposes to reduce the issued Equity and Preference Share capital of the Corporate Debtor to Zero, i.e., NIL value. It is therefore, proposed that there will be complete extinguishment of 51,91,400 issued fully paid up Equity Shares and fully paid up 17,66,505 Preference Shares of Corporate Debtor, which will have the effect of making the issued share capital of Corporate Debtor to Zero, i.e., NIL value. The SRA will infuse fresh share capital into Corporate Debtor to the tune of Rs. 10 lakhs from his own resources by subscribing to 1 lakhs fully paid up equity shares of Rs..10 each and the shareholding of SRA and his affiliates all acting as new promoters of the Corporate Debtor, will be 100% of its issued and paid up share capital. e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30(2)(c)]. D. The Plan also provides for implementation and supervision of the Resolution Plan as stated above [Section 30(2)(d)]. 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 [Section 30(2)(e)]. 11. 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) of the Regulations). 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) of the Regulations). d) Declaration by the Resolution Applicant 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 Res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat 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. 16. 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 Committee of Creditors, has to be within the four corners of section 30(2) of the Code, insofar as the Adjudicating Authority is concerned, and section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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