TMI Blog2021 (10) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... Plan' filed with the Application meets the requirements of Section 30 of IB Code, 2016 and Regulations 37, 38, 38(1A) and 39 (4) of IBBI (CIRP) Regulations, 2016 - resolution plan is approved - application allowed. - IA No. 197 of 2021 in CP (IB) No. 770/9/NCLT/AHM/2019 - - - Dated:- 5-10-2021 - M.B. Gosavi, Member (J) And Virendra Kumar Gupta, Member (T) For the Appellant : Nipun Singhvi and Vishal Dave, Advocates ORDER ( Through Video Conferencing ) 1. The instant application has been filed by the applicant/Resolution Professional for approval of resolution plan under section 30 (6) of Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as IB Code ) read with section 31 of IB Code and Regulation 39 (4) of The Insolvency and Bankruptcy Board of India (Insolvency Process of Corporate Persons) Regulations, 2016 (hereinafter referred to as CIRP Regulations ) after approving the plan by COC with 100% percent vote. 2. The Corporate Debtor was admitted in CIRP vide order dated 18.03.2020 passed by this Authority in an application filed by the Operational Creditor u/s. 9 of IB Code, wherein, the moratorium was declared, Corporate Insolvency Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution plan on 06.01.2021. 6. In the fifth COC meeting dated 27.01.2021, after a detailed discussion in respect to the resolution plan the COC has approved the resolution plan with 100% voting right. 7. The amount provided for the stakeholders under the Resolution Plan are as under; 8. The total claim made by all the claimants is ₹ 14.33 Crores and the amount proposed against the total claim to be paid of ₹ 1,620,667/-. The total haircut under the proposed plan is 98.7%. Reliefs and concession 9. As per clause 3.15 of the Resolution Plan, the resolution applicant stated that with the approval of the Resolution Plan by the Adjudicating Authority, it is assumed that an exemption shall be deemed to have been granted to the Corporate Debtor from the obligation to pay taxes in accordance with the Finance Act, 2020. Further, it is submitted by the Resolution Applicant that with the approval of this Resolution Plan by the Adjudicating Authority. It is assumed that a reasonable opportunity of hearing has been given to the Jurisdictional Principal Commissioner of Income Tax and the Corporate Debtor shall be entitled to carry forward the unabsorbed dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there-under. 16. Now, we consider the facts and submissions made on behalf of the Resolution professional. It is noted that the Resolution Plan, submitted for our approval, has been duly approved by the CoC in its meeting dated 06.11.2020 by 100% votes. The Resolution Professional has given the requisite certificate that the plan complies with all requirements Section 30(2) of IBC, 2016 r.w. relevant CIRP Regulations, 2016. The perusal of the Resolution Plan shows that the Unsecured Financial Creditor will get a sum of ₹ 12,00,000/- against their total claimed amount of ₹ 10.41 crores/- The Operational Creditors would receive a sum of ₹ 3,00,000/- lakhs as against their total claim of ₹ 3.92 crores including claims of statutory Liabilities. The CIRP cost has been kept by the Resolution applicant of ₹ 12,00,000/- The shareholders of the company shall be paid ₹ 1,20,667/-.The total amount paid to shareholders and creditors stands at ₹ 28,20,667/- All the amount proposed for the payment either to the shareholders or creditor be paid within 30 days from the receipt of the order. Apart from the aforesaid payment to the shareholders and credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per relevant provisions of applicable laws. The competent authority shall consider the same keeping in view the object and provisions of the IB Code, 2016. 21. The Resolution Applicant claimed various reliefs and concessions in the resolution plan. However, we grant the reliefs in the following manner and to this extent; I. After the payment of the dues to the creditors, as per the resolution plan, all the liabilities of the said stakeholders shall stand permanently extinguished after the approval of the resolution plan. We further hold that other claims including Government/Statutory Authority, whether lodged during CIRP or not, shall stand extinguished after the approval of the resolution plan. We further hold that contingent/unconfirmed dues shall also stand extinguished; II. On the effective date, all claims except provided in the plan of the suspended management, erstwhile directors, and erstwhile shareholders shall stand permanently extinguished; III. On the effective date and with effect from the appointed date, all encumbrances on the assets of the Corporate Debtor prior to the plan shall stand permanently extinguished on completion of procedural formalit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2013 for complying with the procedural aspects. XIII. On the effective date and with effect from the appointed date, the entire existing share capital of the Corporate Debtor shall stand extinguished without any payment (including any cancelled value of the said equity shares or preference shares) to shareholders of the Corporate Debtor holding such existing share capital. The Resolution Applicant would be entitled to issue new equity share capital in accordance with the provisions of Companies Act, 2013 r.w. rules and regulations made there-under. XIV. Apart from the above observations and directions, it is further directed that: I. The approved 'Resolution Plan' shall become effective from the date of passing of this order. II. The order of moratorium dated 18.03.2020 passed by this Adjudicating Authority under Section 14 of I B Code, 2016 shall cease to have effect from the date of passing of this order. III. The Resolution Professional shall forthwith send a copy of this Order to the participants and the Resolution Applicant(s). IV. The Resolution Professional shall forward all records relating to the conduct of the corporate insolvenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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