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TMI Blog2021 (6) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... od Tarachand Agrawal as the Interim Resolution Professional (IRP). ii) Pursuant to Order of CIRP, the IRP issued a public announcement on 21.12.2019 in Business Standard, English and Lokmat, Marathi for calling of submission of proof of claim from the Creditors. iii) The IRP submits that the claims of three Financial Creditors namely 1) Narottambhai Swomabhai Patel with a claim amount of Rs. 73,36,110/-, 2) Kantilal Narayandas Patel HUF with a claim amount of Rs. 51,94,361/- and 3) Samir Patel with a claim amount of Rs. 12,10,285 were received by the IRP and CoC was constituted. iv) The first CoC meeting was held on 18.01.2020 after the constitution of the CoC and the status of the claim of the Creditors of the Corporate Debtor was apprised by the IRP to the CoC. v) The second meeting of the CoC was conducted on 29.02.2020 and points as to approve Evaluation Matrix, appointment of forensic auditor, publication of Form G etc. were considered and discussed. vi) The third CoC meeting was held on 07.05.2020, wherein the members of the CoC took status of the points discussed in the second CoC meeting. The CoC members also voted on the Bank guarantee extended by Punjab National ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... editors Except M/s. Kinseed Private Limited (Being related party of CD and Mismatch of Claim amount with outstanding as per books. b) The existing Directors would be removed and nominee of the Resolution Applicant would be appointed as the Director of the Company. The Applicant further submits that entire dues of the Financial Creditor are been paid within 30 days from the effective date. The claims of the Operational Creditor is 100% being paid except for one Operational Creditor who is covered under related party definition as per the Code. c) That the Compliance Certificate of the Applicant as prescribed under Regulation 39 (4) of the CIRP Regulations. 3. The Applicant submitted that the Compliance Certificate in Form-H under Regulation 39(4) of the Regulations showing the compliances of the Plan as mandatorily required under the Code and Regulations and that the Plan had been approved by the CoC. 4. We have heard the Applicant and perused the Resolution Plan and related documents submitted along with Application. 5. The Bench had sought queries with regard to the source of the funds. In this regard the Applicant filed addendum to the Resolution Plan altering the Resoluti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n - For the purpose of this section- (i) it is hereby clarified that at each stage of the distribution of proceeds in respect of a class of recipients that rank equally, each of the debts will either be paid in full, or will be paid in equal proportion within the same class of recipients if the proceeds are insufficient to meet the debts in full; and (ii) the term "workmen's dues" shall have the same meaning as assigned to it in section 326 of the Companies Act, 2013 (18 of 2013). c) Provides for the management of the affairs of the Corporate debtor after approval of the resolution plan; d) The implementation and supervision of the resolution plan; e) Does not contravene any of the provisions of the law for the time being in force; f) Confirms to such other requirements as may be specified by the Board. 7. Section 30 (4) of the Code reads as follows: "(4) The committee of creditors may approve a resolution plan by a vote of not less than sixty-six percent of voting share of the financial creditors, after considering its feasibility and viability, the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the 7th meeting held on 17.09.2020 with 100% votes. 14. In K Sashidhar v. Indian Overseas Bank & Others (in Civil Appeal No. 10673/2018 decided on 05.02.2019) the Hon'ble Apex Court held that if the CoC had approved the Resolution Plan by 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) when the Resolution Plan does not conform to the stated requirements. 15. In CoC of Essar Steel ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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