2018 (8) TMI 1956 - AT - Insolvency and Bankruptcy

Appellate Tribunal upholds Resolution Plan, dismisses Operational Creditors' appeals on approved claims

The Appellate Tribunal dismissed the appeals filed by Operational Creditors concerning the Resolution Plan, as it had already been approved and ... Approval of Resolution Plan - case of Operational Creditors is that the ‘Resolution Plan’ submitted by the ‘resolution applicant’ has not taken proper care of the ‘Operational Creditors’ - it is submitted that the ‘Operational Creditors’ were not noticed nor heard by the ‘Committee of Creditors’ - Section 30(2)(b) of the I&B Code - HELD THAT:- The claim of the ‘creditors’ have already been dealt with by this Appellate Tribunal in its judgment dated 10th August, 2018 passed in “Company Appeal (AT)(Insolvency) No. 175 of 2018 and connected appeals”[2018 (8) TMI 1038 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI]. The approval of ‘Resolution Plan’ submitted by ‘Vedanta Ltd.’, which was approved by the ‘Committee of Creditors’, followed by the Adjudicating Authority has been upheld by this Appellate Tribunal - The ‘Resolution Plan’ having already been approved at different levels and already acted upon, we are not inclined to decide individual claim in these appeals. Appeal dismissed. Issues: Operational Creditors' grievance regarding Resolution Plan not considering their interests and lack of notice or hearing by Committee of Creditors.Analysis:1. Operational Creditors' Grievance: The appeals were filed by Operational Creditors alleging that the Resolution Plan submitted by the Resolution Applicant did not adequately address their concerns. The counsel for the appellants argued that the minimum amount specified under Section 30(2)(b) of the Insolvency and Bankruptcy Code (I&B Code) did not necessarily mean that the liquidation value should be provided to Operational Creditors. It was also contended that the Operational Creditors were not given notice or an opportunity to be heard by the Committee of Creditors.2. Respondent's Submission: The Senior Counsel representing the successful Resolution Applicant contended that the debts owed to the Operational Creditors were less than 10% of the total debt, and hence, no notice was mandated under Section 24(3)(c) of the I&B Code. It was further argued that in cases where objections were raised by Operational Creditors, the Committee of Creditors duly considered and addressed them. Additionally, it was pointed out that the Operational Creditors did not raise these grievances before the Adjudicating Authority post the approval of the plan by the Committee of Creditors.3. Judgment: The Appellate Tribunal referred to a previous judgment related to the approval of a Resolution Plan by Vedanta Ltd., which had been upheld by the Tribunal. Given that the Resolution Plan in question had already been approved by the Committee of Creditors and acted upon, the Tribunal declined to individually assess the claims in the current appeals. Consequently, the appeals were dismissed without any costs being awarded.This detailed analysis highlights the key arguments presented by both parties, the legal provisions invoked, and the Tribunal's rationale for dismissing the appeals based on the prior judgment and actions taken on the Resolution Plan.