TMI Blog2021 (6) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... mplied with the code in terms of Section 30(2)(a) to 30(2)(f) and Regulations 38(1), 38(1)(a), 38(2)(a), 38(2)(b), 38(2)(e) 38(3) of CIRP regulations. The 'Resolution Plan' filed with the Application meets the requirements of Section 30(2) of the I B Code, 2016 and Regulations 37, 38, 38(1 A) and 39(4) of TBBI (CMP) Regulations, 2016. The 'Resolution Plan is also not in contravention of any of the provisions of Section 29A Hence, this Adjudicating Authority is satisfied that the Resolution Plan is in accordance with Law - the resolution plan is approved - moratorium shall cease to have effect. - IA No. 981 of 2020 in CP IB Nos. 666/7/HDB/2018 - - - Dated:- 8-4-2021 - M. B. Gosavi, Member (J) And Veera Brahma Rao Arekapudi, Member (T) For the Appellant : T. Ravichandran ORDER 1. The present Application bearing IA No. 981/2020 is filed by the Resolution Professional under section 30(6) of the IB Code, 2016, R/w regulation 39(4) of the IBBI (Insolvency Resolution for Corporate Persons) Regulations, 2016, seeking the following prayers as under:- a) Pass an order approving the resolution plan submitted by the Resolution Applicants in respect of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the provisions of the Code read with Regulations. c) That the summary of claims received and updated as on 03.10.2020 by the Applicant is as follows: d) Thai as per Regulation 27 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the Applicant herein appointed two registered valuers to determine the fair value and liquidation value of the Corporate Debtor in accordance with the Regulation 35 of the Regulations. The valuation summary and reports submitted by the valuers i.e., LSI Engineering Consultants Ltd. and Medha Kulakarni. e) That the Applicant herein has so far conducted 24 no. of meetings of the Committee of Creditors (CoC) and the first meeting was conducted on 15.05.2019. f) That the Applicant submits that he prepared the information memorandum as contemplated under section 29(1) of the Code and the same was circulated to the CoC upon receipt of confidential undertaking from the CoC members vide email dated 10.06.2019. the Applicant while discharging his functions under the code had prepared the necessary eligibility criteria and the same was circulated with Committee of Creditors (CoC). The CoC in its 3rd meeting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d) jointly with IARC. k) That various rounds of negotiations and discussion were held by the CoC with the RA-THPL jointly with IARC for finalization of Resolution Plan which continued till 23rd CoC meeting held on 24.09.2020, wherein few more additional points were raised in respect of the Resolution plan and it was finally decided that the RA shall submit its final Resolution plan after taking into consideration suggestions/comments of the CoC. considering the limited time available for completion of CIRP of the Corporate Debtor, it was decided by the CoC in its 23rd meeting that there would not be any further negotiations and discussions on the plan and upon receipt of the revised plan, it will be put to vote for approval or rejection of the plan. l) That Applicant herein received the Final Resolution plan dated 28.09.2020 from the Resolution Applicant being THPL jointly with IARC after making necessary modifications to the plan on 28.09.2020 through email. m) That Applicant after satisfying himself that the resolution plan is in conformity with the provisions of the Code and the Regulations had circulated the same to the CoC members via e-mail on 28.09.2020 along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 30.11.2020 inter-alia bringing it to the notice of the Superintending Engineer (a) the receipt of the letter (b) the fact that the judgment referred to in the said letter will not be applicable (c) that 1 had submitted a Resolution Plan before this Adjudicating Authority in the instant Application and (d) requesting the Superintending Engineer to approach this Tribunal for the redressal of grievances, if so advised. 3. Learned counsel for the Respondent/8 ASF filed his counter on 31.12.2020, inter-alia stating to consider the Respondent herein vote towards the Resolution Plan modified from dissent to assent and approve the Resolution Plan submitted by the RP in the instant Application. Reiterating the above, the counsel for the Applicant/RP prayed to allow the instant Applicant. 4. Heard learned counsel for the Resolution Professional/Applicant, learned counsel for the Respondent and perused the Resolution Plan and other documents submitted along with Application. 5. Section 30(2) of the Code as amended w.e.f. 06.08.2019 enjoins upon the resolution professional to examine each resolution plan received by him to confirm that such plan- a) provides for the payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on plan, it is the duty of the Adjudicating Authority that it should satisfy itself that the Resolution plan as approved by the COC meets the requirements as referred to in sub-section (2) of Section 30. 9. On perusal of the Resolution Plan, this Adjudicating Authority has observed that the Resolution plan placed for consideration provides for the following: a) Payment of CIRP Cost as specified U/s. 30(2)(a) of IBC, 2016. b) Repayment of Debts of Operational Creditors as specified U/s. 30(2)(b) of IBC, 2016. c) Provides for management of the affairs of the Corporate Debtor, after the approval of Resolution Plan, as specified U/s. 30(2)(c) of IBC, 2016. d) The implementation and supervision of Resolution Plan shall be done by Insolvency Resolution Professional and by the COC as specified U/s. 30(2)(d) of IBC, 2016. e) The Resolution Plan is not in contravention to any of the provisions of Law, for the time being in force, as specified U/s. 30(2)(e) of IBC, 2016. f) The Resolution plan conforms to such other requirements specified by the Beard. 10. In terms of Regulation 27 of CIRP Regulations, Liquidation value was ascertained through two register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sashidhar Vs. Indian Overseas Bank Others, decided on 05.02.2019 in Civil Appeal No. 10673/2018 with CA Nos. 30719/2018, 10971/2018 and SLP(C) No. 29181/2018, the Hon'ble Supreme Court, noticing the provisions of section 30(4), held that if the CoC had approved fee resolution plan by requisite percent of voting share, them 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 (NCLT) is required to satisfy itself that the resolution plan as approved by CoC meets the requirements specified in Section 30(2). No more and no less. 18. In the said judgment, in para 35, the Hon'ble Supreme Court 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 staled requirements. 19. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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