TMI Blog2021 (6) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 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' - In COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA OTHERS [ 2019 (11) TMI 731 - SUPREME COURT] 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. The instant Resolution Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38(1A) and 39 (4) of the Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law - Application allowed. - IA 1772 of 2020 in CP (IB) 1602/MB/C-II/2017 - - - Dated:- 31-5-2021 - H.P. Chaturvedi, Member (J) And Ravikumar Duraisamy, Member (T) For the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9; and invitation of Expression of Interest and the Applicant had received EOI from five Resolution Applicants. Further since the 180 days period was completed, the Applicant had already applied for the exclusion of the Lockdown period from the CIRP period and make necessary application for extending the CIRP period for further 90 days. The members in the said meeting also approved the extension of time for submission of Resolution Plan due to Covid - 19 situation. ix) In the sixth CoC meeting conducted on 17.09.2020, the Applicant informed the members about the claim received from Bank of India and thereafter voting share of the CoC was reconstituted. The Applicant also informed the members that out of the five EOI received, two Resolutions Plan were received namely (i) D -Vois SSV Broad Band Pvt. Ltd. (ii) Intech Online Pvt. Ltd. After discussing both the Resolution Plans, the members of the CoC approved the Plan submitted by D-Vois SSV Broadband Pvt. Ltd. by 100% voting share. x) The salient features of the Resolution Plan recorded in the sixth meeting are hereunder:- a) The Resolution Professional are infusing ₹ 3,93,00,000/- in the Corporate Debtor in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Resolution Professional is ₹ 80 Lakhs (Rupees Seventy Lakhs only) out of which paid during CIRP Period is ₹ 80 Lacs from the proceeds generated and existing debtors recovery during the CIRP period. The amount provided is in full however since it is already paid, balance payable NIL. Further, outstanding amounts, if any, payable will be paid on actuals. The Applicant states that the Resolution Applicant shall open a separate escrow account in the name of the Corporate Debtor having joint signatories of the Resolution Applicant - D Vois SSV Broadband Private Limited and Resolution Professional - Mr. Vinod Tarachand Agrawal for introducing upfront consideration within 30 days of approval of Resolution Plan by Hon'ble NCLT i.e. Effective date. On approval of resolution plan, D-Vois SSV Broadband Private Limited shall take 100% control of the Corporate Debtor by transfer of 100% equity shares to the company. 6. Section 30 (2) of the Code as amended up to date enjoins upon the Resolution Professional to examine each Resolution Plan received by him to confirm that such plan, a) provides for the payment of insolvency resolution process costs in a manner spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional to submit the Resolution Plan as approved by the CoC to the Adjudicating Authority. Section 31 of the Code deals with the approval of the Resolution Plan by the Authority, if it is satisfied that the Resolution Plan as approved by the CoC under section 30(4) meets the requirements provided under section 30(2) of the Code. Thus, it is the duty of the Adjudicating Authority to satisfy itself that the Resolution Plan as approved by the CoC meets the above requirements. 9. On perusal of the Resolution Plan, it is observed that the Resolution Plan provides for the following: a) Payment of CIRP Cost as specified u/s. 30(2)(a) of the Code. b) Repayment of Debts of Operational Creditors as specified u/s. 30(2)(b) of the Code. c) For management of the affairs of the Corporate Debtor, after the approval of Resolution Plan, as specified U/s 30(2)(c) of the Code. d) The implementation and supervision of Resolution Plan by the RP and the CoC as specified u/s. 30(2)(d) of the Code. 10. The RP has certified through affidavit that 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 32 read with section 61(3) of the Code, insofar as the Appellate Tribunal is concerned, the parameters of such review having been clearly laid down in K. Sashidhar(supra). 16. In view of the discussions and the law thus settled, the instant Resolution Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38(1A) and 39 (4) of the Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law. The same needs to be approved. Hence ordered. ORDER The Application IA No. 1772 of 2020 in CP 1602 of 2017 be and the same is allowed. The Resolution Plan annexed to the Application is hereby approved. It shall become effective from this date and shall form part of this order. i. It shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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