TMI Blog2022 (10) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 30(2) of the Code. Thus, it is the duty of the Adjudicating Authority to satisfy itself that the Resolution Plan as approved by the CoC meets all the requirements. The RP has complied with the requirement of the Code in terms of Section 30(2)(a) to 30(2)(f) and Regulations 38(1), 38(1)(a), 38(2)(a),38(2)(b), 38(2)(c) 38(3) of the Regulations. 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. 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 - Application allowed. - IA. No. 1057/2022 In CP(IB)No. 4336/MB/C-II/2019 - - - Dated:- 7-10-2022 - Hon ble Member ( Judicial ) : Justice P.N. Deshmukh ( Retd. ) And Hon ble Member ( Technical ) : Mr. Shyam Babu Gautam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not accepted by the Applicant as the same was received after the closure of the date of receipt of the EoI. 6. Further with a view to increase the number of prospective applicants, the CoC decided to issue fresh Form G. After issuing second EoI, seven fresh EoI were received from PRA s. The Applicant submits that total 3 Form G were published and 25 applicants were shortlisted in the final list of PRA s and 5 PRA s submitted their Resolution Plan. 7. An Application for extension of the CIRP was filed. The said was allowed vide Order dated 31.01.2022. Accordingly, the 270th day of the CIRP expired on 24.03.2022. further an exclusion Application was filed and the period of second wave of Covid-19 was excluded and the CIRP period was extended till 23.05.2022. 8. Thereafter, 15th CoC meeting was held on 15.11.2021 and 22nd meeting held on 08.03.2022, deliberations and negotiations were going on between the Resolution Applicants for improvement in the Resolution Plans. Pursuant to the discussion held in the 21st CoC meeting, among top two Resolution Applicants, e-bidding was held on 24.02.2022. 9. In the 22nd CoC meeting held on 08.03.2022, evaluation sheet of the five Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors Secured Timelines : Upfront Within T + 90 days 33.30 Crores Rs. 25 Crores through Bank Loan and Balance shall be from Resolution Applicant 6. Financial Creditors Unsecured Timelines : Upfront Within T + 60 days 0.25 Crores Infusion through Resolution Applicant 7. Related Party dues NIL Not Applicable 8. Equity Shareholders NIL Not Applicable Total :- 35.61 Crores 14. The Resolution Applicant proposes to infuse Rs. 7,00,00,000 as working capital requirement of Corporate Debtor. The Resolution Applicant will infuse funds as per the working capital cycle of Corporate Debtor as working capital cycle is very volatile between all the months. 15. The Resolution Applicant has submitted the performance Bank Guarantee for a sum of Rs. 1,78,05,000/- into the designated account and the same has been submitted with the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsection (1) of section 53 in the event of a liquidation of the corporate debtor. Explanation - For the purpose of this section (i) it is hereby clarified that at each stage of the distribution of proceeds in respect of a class of recipients that rank equally, each of the debts will either be paid in full, or will be paid in equal proportion within 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. 22. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the interest of the stakeholders in compliance with the Code and the Regulations. 29. The Resolution Plan has been approved by the CoC in the with 87.15% votes in terms of Section 30(4) of the Code. 30. In K Sashidhar v. Indian Overseas Bank Others (in Civil Appeal No.10673/2018 decided on 05.02.2019) the Hon ble 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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