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TMI Blog2021 (1) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... A. Jasin Jose as the Resolution Professional from 16.01.2020. The applicant Resolution Professional submits that the CIRP ordered by this Tribunal was conducted in compliance with the terms of the Code and the relevant Rules and Regulations. 3. The Resolution Professional submits that advertisements inviting claims from the creditors were issued, advertisement inviting Expression of Interest (EOI) was published in two newspapers and on publishing of Form G, Resolution Professional has received Expression of Interest from 2 prospective Resolution Applicants. 4. As per Section 36A (8) of IBC, 2016 the Resolution Professional shall conduct due diligence based on the material on record in order to satisfy that the prospective Resolution Applicant complies with the following: - a) The provisions of clause (h) of Sub-Section (2) of Section 25. b) The applicable provisions of Section 29A. c) Other requirements as specified in the invitation for Expression of Interest. 5. On verification of the Resolution Applications received, it was found that one of the applicant's history was not satisfactory to include in the provisional list of Resolution Applicants and same was conveye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the above, the Resolution Applicant filed an application before this Tribunal and requested for time extension of 30 days. Vide order dated 25.09.2020 in IA/142/KOB/2020, this Tribunal allowed the prayer and extended the time up to 12/10/2020. 10. The seventh CoC was held on 28/09/2020 to consider the Revised Plan but the Plan was not finalized and put-on negotiation for final consideration. 11. The eighth CoC was held on 09/10/2020 and the counsel to the Resolution Applicant appeared in that meeting and informed that the Resolution Applicant is tested with COVID positive and is under hospitalization in Renai Medicity Hospital, Ernakulam. Hence, he requires additional two weeks' time to discuss with the Resolution Applicant to finalize the plan. The Eighth CoC allowed two weeks' time to the Resolution Professional unanimously with 100% voting to file an application for extension of CIRP period for further 45 days. This Tribunal allowed further extension of 45 days from 12/10/2020 to 26/11/2020 to complete the Corporate Insolvency Process. 12. On 29/10/2020 Resolution Applicant has submitted the Revised Resolution Plan and CoC Considered same in the 9th CoC meeting co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. ii. Rs. 13.89 Crores to be paid on or before 31 January, 2021 or 90 days from the date of approval of the Resolution Plan by AA, whichever is later. b) An amount of Rs. 1.72 Crores will be paid to Stancash Chits Private Limited towards the entire claim amount of Rs. 1.72 Crores as follows: i. Rs. 17.20 Lakhs to be paid on or before 30 November, 2021 or 30 days from the date of approval of the Resolution Plan by AA whichever is later. ii. Rs. 1.54 Crores to be paid on or before 31 January, 2021 or 90 days from the date of approval of the Resolution Plan by AA whichever is later. c) An amount of Rs. 15.43 Lakhs will be paid to Financial Excellence towards the entire claim amount of Rs. 25.63 Lakhs as follows: i. Rs. 1.54 Lakhs to be paid on or before 30 November, 2021 or 30 days from the date of approval of the Resolution Plan by AA whichever is later. ii. Rs. 13.89 Lakhs to be paid on or before 31 January, 2021 or 90 days from the date of approval of the Resolution Plan by AA whichever is later. II. Payment of Operational Creditors and other Creditors- Resolution Applicant proposes to pay the entire dues of Operational Creditors (other than Provident Fund dues), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; (a) The term of the plan and its implementation schedule Yes-Implementation schedule is from approval of plan to 31.01.2021 or 90 days from the date of approval of the Resolution Plan by AA which ever later. (b) The management and control of the business of the Corporate Debtor during its term; and Yes The Resolution Applicant propose to join the board of the Company and induct two Ex SBI Bankers Mr. Ashokan N. and Mr. Prem Kumar Varma till the repayment completes as per the plan (c) Adequate means for supervising its implementation Yes Resolution Applicant propose to bring Rs. 26.75 Crores within 31.01.2021 or 90 days from the date of approval of the Resolution Plan by AA which ever later A Resolution Plan shall demonstrate that (a) It addresses the cause of default; (b) It is feasible and viable; (c) It has provisions for its effective implementation; (d) It has provisions for approvals required and the timeline for the same; and Resolution Applicant has the capability to implement the Resolution Plan (a) Yes (b) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of the Resolution Plan, to satisfaction of the Adjudicating Authority, to cure such invalidity or unenforceability of the provisions of the Resolution Plan shall not render the whole Resolution Plan ineffective, unless otherwise directed by the Adjudicating Authority by an order. g) The Resolution Applicant reserves and retains the right to modify the proposed Resolution in the event of amount proposed in this plan for settling the dues to the Financial Creditor and other Creditors is revised based on the discussions between members of the CoC and the Resolution Applicant. h) The Resolution Applicant has made every possible effort to prepare and submit the Resolution Plan strictly in accordance with the various provisions of the Code. However, if there is any inadvertent inadequacy/shortcoming/defect in the Resolution Plan, the Resolution Applicant shall be given an opportunity for rectifying and removal of such inadequacy/shortcoming/defects so observed. i) Any Financial Creditor may assign is rights under this Resolution Plan, subject to the transferee unconditionally agreeing to be bound by the terms of this Resolution Plan. 18. The Resolution Plan submitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall present to the committee of creditors for its approval such resolution plans which confirm the conditions referred to in subsection (2). (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 the feasibility and viability, and such other requirements as may be specified by the Board: Provided that the Committee of Creditors shall not approve a resolution plan, submitted before the commencement of the Insolvency and Bankruptcy Code, (Amendment) Ordinance, 2017 (Ord. 7 of 2017), where the resolution applicant is ineligible under Section 29A and may require the resolution professional to invite a fresh resolution plan where no other resolution plan is available with it: Provided further that where the resolution applicant referred to in the first proviso is ineligible under clause (c) of Section 29A, the resolution applicant shall be allowed by the Committee of Creditors such period, not exceeding thirty days, to make payment of overdue amounts in accordance with the proviso to clause (c) of Section 29A. Provided also that nothing in the second proviso shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sary approval required under any law for the time being in force within a period of one year from the date of approval of the resolution plan by the Adjudicating Authority under Sub-Section (1) or within such period as provided for in such law, whichever is later: Provided that where the resolution plan contains a provision for combination as referred to in Section 5 of the Competition Act, 2002 (12 of 2003), the resolution applicant shall obtain the approval of the Competition Commission of India under that Act prior to the approval of such resolution plan by the Committee of Creditors.] 23. It is also necessary to refer the provisions of Regulation 38 and 39 of CIRP Regulations to come to a conclusion that requirements of the Regulations are fulfilled. Regulation 38 and 39 are as follows: - Regulation 38 - Mandatory contents of the resolution plan: [(1) The amount due to the operational creditors under a resolution plan shall be given priority in payment over financial creditors.] [(1A) A resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion plan approved by the committee to the Adjudicating Authority at least fifteen days before the maximum period for completion of corporate insolvency resolution process under section 12, along with a compliance certificate in Form H of the Schedule and the evidence of receipt of performance security required under Sub- Regulation (4A) of Regulation 36B]. (5) The resolution professional shall forthwith send a copy of the order of the Adjudicating Authority approving or rejecting a resolution plan to the participants and the resolution applicant. (6) A provision in a resolution plan which would otherwise require the consent of the members or partners of the corporate debtor, as the case may be, under the terms of the constitutional documents of the corporate debtor, shareholders' agreement, joint venture agreement or other document of a similar nature, shall take effect notwithstanding that such consent has not been obtained. (7) No proceedings shall be initiated against the interim resolution professional or the resolution professional, as the case may be, for any actions of the corporate debtor, prior to the insolvency commencement date. (8) A person in charge of the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant shall, pursuant to the Resolution Plan approved under Sub-Section (1) of Section 31, obtain necessary approval required under any law for the time being in force within a period of one year from the date of approval of the Resolution Plan by this Tribunal under Sub-Section (1) of Section 31 or within such period as provided for in such law, whichever is later. 33. Subject to the observations made in this Order, the Resolution Plan submitted by Mr. Jose Pradeep is hereby APPROVED by this Bench. 34. Any relief sought for in the Resolution Plan, where the contract/agreement/understanding/proceedings /actions/notice etc. not specifically identified or is for future and contingent liability, is at this moment rejected. 35. The order of Moratorium dated 28.11.2019 passed by this Adjudicating Authority under Section 14 of the I&B Code, 2016 shall cease to have effect from the date of passing of this Order. 36. The Resolution Professional shall forward all records relating to the conduct of the CIRP along with the 'Resolution Plan' to the IBBI, so that the Board may record the same on its data-base. 37. The directions embodied and period of implementation provided herein above s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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