Harsh Poultry Farms' Resolution Plan Approved, Waivers Granted for Tax Dues

The Resolution Plan submitted by Harsh Poultry Farms was approved by the Tribunal, granting waivers for past tax dues and export obligations. The plan included provisions for repayment of debts, management of the Corporate Debtor's affairs, and supervision of plan implementation. The Resolution Applicant was directed to pay the balance amount within 30 days. The Tribunal ordered the cessation of the moratorium order and transfer of records to the Insolvency and Bankruptcy Board of India, adjourning the case for further proceedings.

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Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016.
2. Constitution and functioning of the Committee of Creditors (CoC).
3. Valuation and liquidation process.
4. Submission and evaluation of the Resolution Plan.
5. Conditions and waivers requested in the Resolution Plan.
6. Compliance with statutory requirements and regulations.
7. Approval and implementation of the Resolution Plan.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan:
The application was filed by the Resolution Professional for approval of a Resolution Plan submitted by Harsh Poultry Farms under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 39(4) of the CIRP Regulations.

2. Constitution and Functioning of the CoC:
The Resolution Professional constituted a Committee of Creditors (CoC) comprising State Bank of India (SBI) with a 96.22% voting share and Bank of India (BoI) with a 3.78% voting share. The total debt amounted to Rs. 32,52,38,249.84. The CoC held multiple meetings to discuss and approve the Resolution Plan, including the process for Expression of Interest (EOI) and the evaluation of the Resolution Plan.

3. Valuation and Liquidation Process:
Two registered valuers were appointed to determine the liquidation value, which averaged Rs. 3.91 crores. The Resolution Professional prepared an Information Memorandum and invited claims from creditors.

4. Submission and Evaluation of the Resolution Plan:
The Resolution Plan submitted by Harsh Poultry Farms proposed a total bid of Rs. 5.25 crores, later revised to Rs. 5.5 crores. The plan included detailed payment schedules and conditions, such as the transfer of land owned by promoters to the company. The CoC discussed and suggested modifications to the plan, which were incorporated by the Resolution Applicant.

5. Conditions and Waivers Requested in the Resolution Plan:
The Resolution Applicant requested waivers for liability to any taxation dues for previous periods and exemption from pending export obligations. The CoC could not decide on these waivers, as they were beyond its competence. The Tribunal considered these requests and found it reasonable to exempt the Resolution Applicant from these obligations.

6. Compliance with Statutory Requirements and Regulations:
The Resolution Professional confirmed compliance with various provisions of the Code and Regulations, including Sections 30(2), 37(1), 38(1), 38(2), and 38(3) of the CIRP Regulations. The Resolution Plan was unanimously approved by the CoC within the stipulated 180 days.

7. Approval and Implementation of the Resolution Plan:
The Tribunal approved the Resolution Plan, granting waivers for past tax dues and export obligations. The plan provided for the payment of insolvency resolution process costs, repayment of debts to operational creditors, management of the Corporate Debtor's affairs, and supervision of the plan's implementation. The Resolution Applicant was directed to pay the balance amount of Rs. 405 lakhs within 30 days from the receipt of the certified copy of the order.

Conclusion:
The Resolution Plan submitted by Harsh Poultry Farms was approved, subject to certain conditions and waivers. The plan addressed the interests of all stakeholders, including financial creditors, operational creditors, and employees. The Tribunal directed the cessation of the moratorium order and the forwarding of all records to the Insolvency and Bankruptcy Board of India. The case was adjourned for further proceedings.

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