TMI Blog2023 (4) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... pta [[ 2019 (11) TMI 731 - SUPREME COURT] ] - Approval of Resolution Plan by the Adjudicating Authority can be questioned on a limited ground that plan is violative of any statutory provision including provision of Section 30 Sub-section (2) of the I B Code. One of the submission which has been raised by learned counsel for the Appellant is that very limited amount has been paid to the Appellant and other creditors that comes to 0.0969% of the admitted claim - Present is not a case that it is contended that payment to the other creditors/ Operational Creditors is less than the liquidation value. The allocation in the plan to the creditors can be questioned when the plan value earmarked for them is less than the liquidation value. Mere al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellant before the Adjudicating Authority has been noticed in the order dated 06.02.2023 passed in I.A. No. 431/(AHM)/2021. Para 2 of the order notes objections, which are to the following effect: 2. Applicant in present IA has made out case for rejection of the Resolution Plan mainly on the ground stated in para 22 to 27 of the IA No.431 of 2021, which are reproduced below for benovalent reference: 22. As per the provisions of the Code and the Regulations made thereunder, a Resolution Plan must fulfill the following criteria for it to be viable; (a) The Resolution Plan must be fair and equitable in terms of settlement of claims of the Operational Creditors vis-as-vis the Financial Creditor. (b) The Resolut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Respondent No.3 to be paid is equivalent to 21.56% 25. Contrary to the aforementioned settlement, the claims of the operational creditors is unjustly paid under the Resolution Plan and in contravention to the Code and the Regulations, 2016. As against the admitted claim of Rs.114.7 Crores, only Rs.0.19 Crores is approved by the Committee of Creditors to be paid as per the Resolution Plan to the Operational Creditors. This is equivalent to approximately 0.096% of the admitted claims of the Operational Creditors other than the statutory dues. Category Admitted Claim Payment as per Plan Percentage of Admitted Claim paid in Resolution Plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al have come in to light which indicate that the Asset Reconstruction Company is a fraudulent company which is involved in several illegal activities. An additional affidavit has been filed by the Appellant bringing on record Income Tax raid and several newspaper articles and press release issued by Ministry of Finance dated 15.12.2021. It is submitted that a fraudulent company should not be allowed to take over the Corporate Debtor. 3. The submission of the learned counsel for the Appellant has been refuted by learned counsel for the Successful Resolution Applicant as well as the Resolution Professional. It is submitted that in the resolution process there were two resolution applicants. M/s Vedanta Ltd., who has also filed resolution p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd to question the resolution plan. 8. It is also submitted by learned counsel for the Appellant that several cases against the Rare Asset Reconstruction Ltd. are pending including Income Tax raid. 9. Be that as it may. The law will take its own course. On these grounds, we are unable to interfere with the order approving the Resolution Plan. As far as, applications regarding rejection of claim which are pending, learned counsel for the Respondent has pointed out that the same has been dealt with in the order of the Adjudicating Authority in Para 39(iv), where relief and concessions have been noticed at page 65 of the paper book. Para 39(iv) is as follows: iv. The reliefs granted in (i) (ii) (iii) supra are subject to outcome ..... X X X X Extracts X X X X X X X X Extracts X X X X
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