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TMI Blog2021 (10) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 7 of the Code before this Adjudicating Authority seeking initiation of CIRP against the said corporate debtor. This Adjudicating Authority vide its order dated 07.08.2019 admitted the said CP and declared moratorium. Further, Mr. Naresh Verma was appointed as the Interim Resolution Professional vide its order dated 07.08.2019 in the said CP (IB) No. 157/7/JPR/2019. 2. It is submitted that pursuant to the public announcement, claims were received from 2 financial creditors, 17 operational creditors, 6 workmen & employees and 1 authorized representative of workmen & employee. 3. It is further submitted that after the verification and admission of the claims, the CoC was constituted on 29.08.2019, consisting of two financial creditors n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25.03.2020 to 30.06.2020) and therefore the CIRP was scheduled to end on 08.10.2020. 8. It is stated that CoC in its 10th meeting held on 25.08.2020, the applicant informed the CoC, that two resolution plans have been received before the due date of 16.08.2020 and the same can be deliberated by them. It is submitted that CoC members discussed the resolution plans submitted by two applicants namely (1) IPL & (2) Consortium of 6 individuals led by Mr. Krishna Aggarwal ("Consortium") and thereafter, both of them were asked to further revise their resolution plans, to be submitted to RP on or before 02.09.2020. 9. It is stated that on 15.09.2020, STCI Finance Limited, one of the CoC member having 25.88% voting rights have withdrawn their cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplied with or not. 13. In view of the mandatory requirements of Section 30(2) of the Code, and the peculiar facts of this case, we examine the resolution plan of the Consortium dated 09.09.2020 along with the addendum dated 19.09.2020, as approved by the Committee of Creditors. 14. As per Section 30(2)(a) of the Code, the Resolution plan approved by the Committee of Creditors must provide for payment of insolvency resolution process cost in a manner specified by the Board in priority to the payment of other debts of the corporate debtor. In Part 7.3 of the Resolution Plan (Page 55 of the application), it is stated that the unpaid CIRP costs of Rs. 0.90 Crore will be paid in full and in priority to other creditors. It is also stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision made for the management and control of the company after the approval of the resolution plan. A detailed mechanism regarding the management and control is discussed in Part 12 (Page 66 of the application) under the heading 'Pre-effective Date Conditions and Obligations". It is stated therein that upon the approval and after the effective date, the existing directors of the corporate debtor shall resign, and the new directors shall be appointed to manage the affairs of the Company. 17. Section 30(2)(d) of the Code envisages that it must provide for implementation and supervision of the resolution plan. Part 11 of the Resolution Plan (Page 65 of the application) provides for a detailed mechanism for effective implementation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iguda, Hyderabad)] were received by the RP on 23.10.2020. 22. With regard to the compliance of the second proviso to Section 31(4) of the Code i.e. obtaining the approval of the Competition Commission of India, it is observed that there is no statement made anywhere in this application. 23. With regard to the compliance under Regulation 35A, it is stated that there was delay in the determination of preferential transaction of Corporate Debtor and the same was determined on 152nd day on 06.01.2020 and has filed an application being IA No. 80/JPR/2020, which is pending before this Adjudicating Authority and the same is to be continued even after approval of the Resolution Plan. 24. Further, the resolution plan fulfills all the requirements ..... X X X X Extracts X X X X X X X X Extracts X X X X
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