TMI Blog2022 (6) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... e Regulations - The Resolution Plan has been approved by the CoC in the with 76.69% votes in terms of Section 30(4) of the Code. 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. 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 Resolution Plan submitted by Mr. Rakesh Ranjan jointly with M/s Equilibrated Venture CFLOW Private Limited is hereby approved. Application allowed. - IA. No. 106/2021 In CP(IB)No. 1796/MB/C-II/2017 - - - Dated:- 17-6-2022 - Hon ble Member (Judicial) : Justice P.N. Deshmukh (Retd.) And Hon ble Member (Technical) : Mr. Shyam Babu Gautam For the Resolution Professional : Mr. Sahil Menon, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t received only one expression of interest. Hence, the CoC decided to issue a revised Form G and accordingly a revised Form G was published on 06.03.2019 and the last date for submission of the Resolution Plan to be 04.05.20219. Thereafter, again a revised Form G was published on 02.04.2019 thereby providing the last date for submission of the Resolution Plan to be 24.05.2019. 6. In response, the Applicant received EoI from (i) M/s Valveworks India Private Limited and (ii) M/s Precise Venture Holdings Limited (PVH). Pursuant then to the Applicant requested for the Resolution Plan (RFRP) from the prospective resolution applicants. In terms of the RFRP, the Applicant received only one Resolution Plan from PVH. Consequently, the CoC approved PVH s Resolution Plan by a majority vote of 75.35% in the 9th CoC meeting held on 02.07.2019. 7. Further according to the terms of the RFRP, PVH was required to submit Performance Bank Guarantee (PBG) within 7 days of the issuance of the LoI which was later reduced by the CoC to 2 days due to constraint of time. However, despite the passing of the agreed timelines, PVH failed to furnish the PBG. Therefore, the CoC in its 10th meeting held on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets the requirements of the Code and is in accordance with Regulation 39(4) of the CIRP Regulations. Compliance Certificate in Form H and copy of performance bank guarantee in favour of SBI is placed on record. 12. The Resolution Plan submitted by the Resolution Applicant is in compliance with the provisions of the Code, the CIRP Regulations and does not contravene any of the provisions of law. The Resolution Plan consists of a financial outlay of Rs. 64.75 Crores (Rupees Sixty-Four Crores Seventy-Five Lakhs Only) out of which the total payout to the Creditors is Rs. 55.25 Crores (Rupees Fifty-Five Crores and Twenty- Five Lakhs Only). SALIENT FEATURES OF THE APPROVED RESOLUTION PLAN 13. The summary of the Resolution Plan is as under ;- Sr. No. Category of Stakeholders Sub Category of Stakeholders Amount Claimed Amount Admitted Amount provide under the Plan Amount provided to the amount Admitted (%) 1 2 3 4 5 6 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure provided in the plan Total [(a)+(b)] 5,369 4,599 323 7% 3. Operational Creditors (a) Related Party of Corporate Debtor 0 0 0 (b) Other than (a) above: (i) Government 3,281 3,281 (ii) Non-Govt. OC 1,260 916 Total[(a)+(b)] 4,541 4,198 80 2% 4. Employees workmen (a) Workmen 0 0 0 (b) Employees 104 88 88 Total[(a)+(b)] 104 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Financial Creditors, against the Verified Amount of the Operational Creditors. The entire payment of Rs. 80 lakhs shall be made within 180 days from the Effective date on a prorata basis amongst all the Operational Creditors whose claims have been admitted on or prior to the date of approval. 18. The Applicant further submits that the Resolution Plan submitted is in compliance with Section 30 (2) of the Code and Regulation 38 (A) of the CIRP Regulations. The RP has provided a compliance certificate in FORM H as mandated under the Code for seeking approval of the Resolution Plan from this Hon ble Bench. OBSERVATIONS OF THE ADJUDICATING AUTHORITY 19. We have heard the Applicant and perused the Resolution Plan and related documents submitted along with Application. 20. It is seen that the Resolution Applicant has given an Undertaken with respect to Bank Guarantee of Rs. 1,00,00,000/- in favour of SBI. Further, an additional Bank Guarantee of Rs. 50,00,000/- will be infused over and above the Bank Guarantee during the period of 180 days after the receipt of the Order of approving the Resolution Plan and the said additional Bank Guarantee can be adjusted in the ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the same class of recipients if the proceeds are insufficient to meet the debts in full; and (ii) the term workmen s dues shall have the same meaning as assigned to it in section 326 of the Companies Act, 2013 (18 of 2013). c) Provides for the management of the affairs of the Corporate debtor after approval of the resolution plan; a) The implementation and supervision of the resolution plan; b) Does not contravene any of the provisions of the law for the time being in force; c) Confirms to such other requirements as may be specified by the Board. 25. Section 30 (4) of the Code reads as follows: (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 its feasibility and viability, the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53, including the priority and value of the security interest of a secured creditor and such other requirements as may be specified by the Board. 26. Section 30(6) of the Code enjoins the Resolutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court held that if the CoC had approved the Resolution Plan by requisite percent of voting share, then as per section 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 . The Hon ble Court further held that the discretion of the Adjudicating Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan as approved by the requisite percent of voting share of financial creditors. Even in that enquiry, the grounds on which the Adjudicating Authority can reject the Resolution Plan is in reference to matters specified in Section 30(2) when the Resolution Plan does not conform to the stated requirements. 34. In CoC of Essar Steel (Civil Appeal No. 8766-67 of 2019 decided on 15.11.2019) the Hon ble Apex Court clearly laid down that the Adjudicating Authority would not have power to modify the Resolution Plan which the CoC ..... 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