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TMI Blog2021 (10) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 9 of the Code for initiating Corporate Insolvency Resolution Process of M/s. Ireo Fiveriver Private Limited/Corporate Debtor. This Tribunal vide order dated 13.12.2018 admitted the petition and appointed Mr. Kanwal Chaudhary as the Interim Resolution Professional (IRP). The IRP made a public announcement in Form A as prescribed under Regulation 6(1) of the Regulations on 19.12.2018 of intimation of commencement of Corporate Insolvency Resolution Process of the Corporate Debtor and for calling the creditors to submit their claims along with the proof in the prescribed format. 3. The appointment of Interim Resolution Professional was confirmed as the Resolution Professional pursuant to the first meeting of CoC on 28.01.2019. The RP conducted CIRP as per the regulations mentioned above and carried out various tasks as per the provisions of the code. 4. The RP submits that Form-G was published in the newspaper dated 19.06.2019 for inviting Expression of Interest. However, no compliant resolution plan was received as there was only one proposal without EMD (Earnest Money Deposit) from the Developer Group India Pvt. Ltd. and that too was only to act as Project Management Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 and was kept open till 08.01.2020. 9. The RP submits that the resolution plan submitted by consortium comprising of Trident Infrahomes Private Limited and Romano Infrastructure Private Limited was approved by the members of the CoC having 100% voting share in its 12th COC meeting held on 02.01.2020. 10. The RP submits that the fair value of corporate debtor is of Rs. 262.77 Crores and liquidation value of corporate debtor is of Rs. 135.28 Crores. The valuation reports as obtained by the RP are annexed. 11. The RP submits that pursuant to approval of the Resolution Plan by the COC, the RP issued a Letter of Intent dated 17.01.2020 to the successful Resolution Applicant and accordingly, the resolution applicant informed the RP that they shall create a bank fixed deposit by 30.01.2020 as Performance Bank Guarantee. As an alternative, they have offered collateral security which will be mortgaged in favour of the creditors of the corporate debtor and have requested to release the fixed deposit on creation of such mortgage to the satisfaction of monitoring committee/resolution professional/committee of creditors. 12. The objectors being 20 number of homebuyers, have filed their ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier IRP Mr. Kanwal Chaudhary who was replaced by the current Resolution Professional owing to glaring defects and lacunae in the Information Memorandum (brevity IM) that was time and again brought to the notice at the COC meetings and also through emails written communications. The important and glaring points rendering the IM grossly defective are that the RP has not factored the refunds made to some home buyers and shifting some out of them to other projects. The corporate debtor has signed joint venture agreements with other sister companies of the Ireo Group, but the IM is silent on the present status of these joint ventures, which have not been factored by the RA. The IM fails to give a true picture of the actual liabilities of the corporate debtor. Further, even the statutory auditors of the Corporate Debtor have deliberately acted in a negligent and fraudulent manner and prepared manipulated financial statements. B. No Evaluation Report and Forensic Audit Conducted by the RP - That it is submitted that inspire of the repeated reminders about the Forensic Audit, the RP till now have failed to complete the Forensic Audit. C. Preferential Treatment of Some Financial Credito ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation value, which due to the faulty IM and in absence of forensic report is zero. The RP when asked about the fate of the Dissenting Creditor by the home buyers did not provide a clear picture, which led to people voting in favour of the Resolution Plan endorsed by the banks and supported by the RP. 15. After perusing the resolution plans and submissions made by the counsels of the RP, it is submitted that the requirements of Section 31 of the Code read with Regulation 39 of the Regulation are satisfied in the present case and that the resolution plan submitted by Trident Infrahomes Private Limited and Romano Infrastructure Private Limited- "consortium", is approved by the CoC with 100% of voting. 16. The Compliance Certificate in Form H as prescribed under Regulation 39(4) as amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018, is also filed by the RP. 17. The RP further states that the monitoring committee shall constitute 3 representatives of the Resolution Applicants, 3 representatives of COC members and 1 qualified insolvency professional (which may or may not be the Resolution Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % 19. It is submitted that the date of expiry of 180 days of CIRP was 11.06.2019. The period of 90 days of CIRP was extended vide order dated 04.06.2019, which expired on 09.09.2019. An application was filed seeking availment of 330 days of CIRP as per section 12(3), which was granted by the bench vide order dated 25.11.2019. The present application is filed on 31.01.2020. 20. It is seen from record that objectors are 20 homebuyers. The plan is approved with 100% voting share of CoC which comprises of two banks HDFC bank, Axis bank and also association of home buyers, comprising of approximately by 343 homebuyers. They have after deliberation passed resolution approving plan. In present case 37.69% homebuyers have consented in favour. It is only 20 No. of homebuyers who have raised objections to approval of plan. Moreover, the apex court has held that commercial wisdom of CoC need not be interfered by adjudicating authority and in present case it is approved by 100% voting share of CoC. The provisions of section 31 read with regulations are complied. The liquidation value is Rs. 135.28 crores and plan offers Rs. 220 crores which is much higher than liquidation value. The f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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