TMI Blog2022 (9) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... an is approved - application allowed. - IA 690 of 2020 in CP(IB) 38 of 2019 - - - Dated:- 30-8-2022 - Dr. Madan B. Gosavi , Hon ble Member ( J ) And Kaushalendra Kumar Singh , Hon ble Member ( T ) Mr. Navin Pahwa, Ld. Sr. Adv. a.w. Ms. Helly Parikh, Adv. for the Applicant/RP, Mr. Kunal P Vaishnav, Ld. Adv.for the Dissenting Financial Creditor, Mr. Ravi Kapoor, RP present in person ORDER 1. IA 690 of 2020 in CP (IB) No. 38 of 2019 is filed by Mr. Ravi Kapoor, RP of Corporate Debtor M/s NRS Projects Private Limited for approval of resolution plan submitted by Mr. Nimit Sangani, one of the Promoters of the Corporate Debtor. 2. The said resolution plan has been approved by the COC in its 9th meeting held on 07.09.2020 by 73.03% votes. The following facts are not in dispute: a) The Corporate Debtor has been admitted in CIRP by order dated 25.07.2019. The Applicant was appointed as the IRP. b) There is no record available to show that exactly when public announcement of the Corporate Debtor was made. The IRP was obliged to make it within three days from the date of order of admission of CIRP as per Section 13(b) of IBC. However, upon receipt of the claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication for exclusion of 84 days from the total CIRP period. This Resolution was opposed by two Financial Creditors i.e. Fedbank Financial Services Limited and Reliance Home Finance Limited. However, the Corporation Bank having 20.30% votes and the home buyers then having 59.15% votes passed the resolution requesting this Authority to exclude certain period from CIRP period that application was allowed by this Adjudicating Authority. The RP was again instructed to republish Form-G calling upon EOI. The Form-G was published in English as well as in vernacular newspaper dated 23.05.2020 (Annexure- N). Form-G was again modified and republished on 01.06.2020. 7. 8th COC meeting was held on 28.08.2020. At that time voting percentage of home buyers was 68.34%. However later the voting percentage of home buyers got increased to 73.03%. The table below reflects the final voting percentage of each of the CoC Members: Sr. No. Name Voting % 1. Union Bank of India [Erstwhile Corporation Bank] 13.41 2. Fedbank Financial Services Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Payment to Secured Financial Creditors Banks and FI % Debt % of Settlement amount Corporation Bank-Akota Branch- Vadodara Secured 97381573 49.70% 97381573 100% Fedbank Financial Services Ltd- Ahmedabad Secured 32446819 16.56% 32446819 100% Reliance Home Finance Ltd- 390007 Secured 66101784 33.74% 66101784 100% Total Secured Financial Creditors 195930176 100% 195930176 100% 13. Despite payment of 100% of total debt amount is made, all three Financial Creditors opposed the resolution plan. We were curious about the fact as to by why they are opposing the resolution plan. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 29A of IBC in view of Section 240A of the IBC, as the Corporate Debtor is MSME. Learned Sr. Counsel relied on the order of Hon'ble NCLAT in case of Saravana Global Holdings Ltd. and Anr. Vs. Bafna Pharmaceuticals Ltd. and Ors. (Company Appeal No. 203 of 2019). 19. It is not in dispute that the Corporate Debtor is MSME. It is also not in dispute that Mr. Nimit Sangani, one of the Promoters of the Corporate Debtor has submitted the resolution plan in his individual capacity. We have to see whether Mr. Nimit Sangani, the Resolution Applicant can get benefit of Section 240A of IBC? 20. Above provision of law was for consideration of Hon'ble NCLAT in the order cited above. In that case also one promoter of the Corporate Debtor, therein, i.e. M/s .Bafna Pharmaceuticals Ltd. and Ors., has submitted the plan (Bafna Pharmaceuticals Ltd. and Ors. is also an MSME).Taking into consideration the intention of the legislature in enacting Section 240A of the IBC the Hon'ble NCLAT held that : 21. Admittedly, the Corporate Debtor is a MSME and the promoters are not ineligible in terms of Section 29A of the I B Code . Therefore, it is not necessary for the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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