TMI Blog2021 (5) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial creditors like the Applicant herein and that the said expenses are required to be defrayed by the said related party financial creditors out of the amounts due to them. If that were so, the same should have been included in the resolution plan itself, which was placed before the Adjudicating Authority for its approval. There cannot be any open end in relation to the resolution plan and its implementation as sought to be portrayed by the 1st Respondent erstwhile Resolution Professional. If the CoC and RP had not factored the cost in relation to additional litigation and provided for it and having failed to include the same as it should have been included in the resolution plan, the said additional expenditure at a later stage (i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Insolvency took place in as much as a Resolution Plan was approved by the CoC on 24.06.2019 and thereafter the same was submitted before this Tribunal in terms of Section 30 read with Section 31 of the IBC 2016. The said Resolution Plan in MA/651/2019 was approved by this Tribunal vide Order dated 27.08.2019. Consequently the CIRP initiated in relation to the Corporate Debtor ceased to have any effect and the affairs of the Corporate Debtor, namely, M/s. PRC International Hotels Private Limited, was taken over by the 2nd Respondent M/s. Sai Baba Business Solutions Private Limited, being the successful resolution Applicant. (iii) During the pendency of the CIRP, it is averred that a claim was submitted by the Applicant in Form- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings and that the cost of the legal proceedings ought to be met from the amount payable to the related parties as decided by the CoC. 2. Thus, the fulcrum of the Application centers around the challenge to the said Resolution as passed by the CoC to meet the expenditure in relation to the additional litigation costs out of the amounts payable to the related party, the Applicant being one of them, however, not being provided in the Resolution Plan. In the circumstances, the Applicant seeks for the disbursal of the amount of ₹ 13,08,169/- along with the interest at the rate of 12% per annum as provided under the Resolution Plan in view of the Orders of this Tribunal and based upon the circular issued by the IBBI in this regard in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amounts allocated to related party financial creditors to meet the contingent litigation costs. In the meanwhile, it is also pointed out that prior to the approval of the resolution plan, Applications filed by unsecured financial creditors, namely, the estate of late Mr. Mukanchand Bothra and Mr. Jonathan Muralidarane, in relation to the claim was determined by this Tribunal vide Orders dated 02.07.2019 31.07.2019 and in the circumstances since it was directed to consider increase in the resolution plan amount or to treat the said parties at par with the other unsecured financial creditors, the CoC was then called for at the direction of this Tribunal and re-allocated the amounts payable to the unsecured financial creditors, as afterw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Application deserves to be dismissed. 7. During the course of the submissions made by the Counsels for the parties before this Tribunal, Ld. Counsel for the Applicant brings to the notice of this Tribunal about the Order passed by this Tribunal in MA/651/2019 dated 27.08.2019 while approving the resolution plan. Particular attention of this Tribunal was drawn by the Ld. Counsel for the Applicant to paragraph 9 under the caption analysis of resolution plan , and from the same, it is evident that the total Resolution Plan amount for stakeholders provided under the resolution plan is to the extent of ₹ 28,55,06,654/- out of which, a sum of ₹ 1,31,72,812/- has been earmarked to financial creditors - related party and that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d resolution plan, which has been approved by this Tribunal on and from the date of the Order approving the resolution plan, which also includes the CoC as well as the 1st Respondent and the Resolution Applicant. 10. In the said circumstances, we do not find any force in the contention of the 1st Respondent that the CoC has passed a resolution in its 9th CoC Meeting dated 24.06.2019 that additional litigation cost is required to be met out of amounts due and payable to the related party financial creditors like the Applicant herein and that the said expenses are required to be defrayed by the said related party financial creditors out of the amounts due to them. If that were so, the same should have been included in the resolution plan i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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