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 implemented by the Committee of Creditors. Citing a previous judgment, the Tribunal declined to reassess the claims, noting that objections were considered during the approval process. The Operational Creditors' grievances regarding lack of notice or hearing were not upheld, and the appeals were dismissed without costs.

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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.

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