Tribunal Approves Resolution Plan, Dismisses Objections, and Ceases Moratorium

The Tribunal approved the Resolution Plan submitted by Dera Finvest Private Limited with modifications, making it binding on the corporate debtor and stakeholders. The Resolution Plan was found compliant with the Insolvency and Bankruptcy Code provisions, dismissing objections regarding the eligibility of the Resolution Applicant. A new Resolution Plan submission after the approved plan was not considered. The Tribunal dismissed intervention applications and objections by the erstwhile Promoter/Director, emphasizing adherence to the law and commercial decisions by the Committee of Creditors. The moratorium ceased, records were forwarded to the IBBI, and a rejected application resulted in the return of the deposited amount.

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Issues Involved:
1. Approval of the Resolution Plan under section 30(6) read with section 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC).
2. Compliance of the Resolution Plan with section 30(2) of the IBC.
3. Objections regarding the eligibility of the Resolution Applicant under section 29A of the IBC.
4. Consideration of a new Resolution Plan after the submission of the approved plan to the Adjudicating Authority.
5. Intervention application by Harkar Developers Pvt Ltd.
6. Objections by the erstwhile Promoter and Director of the Corporate Debtor.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan under section 30(6) read with section 31(1) of the IBC:
The Resolution Professional (RP) filed M.A. 1363/2018 seeking approval of the Resolution Plan submitted by Dera Finvest Private Limited. The Resolution Plan was approved by 98.72% of the Committee of Creditors (CoC) through e-voting conducted on 01.11.2018-02.11.2018. The Tribunal approved the Resolution Plan with modifications, making it binding on the corporate debtor and its stakeholders.

2. Compliance of the Resolution Plan with section 30(2) of the IBC:
The RP confirmed that the Resolution Plan complies with section 30(2) of the IBC:
- The plan provides for the payment of insolvency resolution process costs in priority.
- Payment to Operational Creditors is more than what would be payable in liquidation.
- Management of the Corporate Debtor's affairs post-approval is provided.
- Implementation and supervision of the Resolution Plan are included.
- The plan does not contravene any law in force.

3. Objections regarding the eligibility of the Resolution Applicant under section 29A of the IBC:
The Resolution Applicant submitted an affidavit stating its eligibility under section 29A. The objections raised by the erstwhile Promoter/Director regarding the applicant's eligibility were not supported by specific averments and were dismissed by the Tribunal.

4. Consideration of a new Resolution Plan after the submission of the approved plan to the Adjudicating Authority:
Chhattisgarh Distilleries Limited filed MA 602/2019 seeking to submit a new Resolution Plan offering a higher amount. The Tribunal noted that it cannot send the approved plan back to the CoC for reconsideration as the new applicant came after the submission of the approved plan, and no relief was sought by the CoC or RP to recall the approved plan. The Tribunal referenced the Supreme Court's judgment in K. Sashidhar vs Indian Overseas Bank, which limits the Adjudicating Authority's role to grounds specified in section 30(2).

5. Intervention application by Harkar Developers Pvt Ltd:
Harkar Developers Pvt Ltd filed an affidavit alleging that the Resolution Applicant was involved in a criminal case. The Tribunal found the allegations to be irrelevant and dismissed the application.

6. Objections by the erstwhile Promoter and Director of the Corporate Debtor:
The erstwhile Promoter/Director raised objections regarding the eligibility of the Resolution Applicant, the transfer of licenses, and the increase in the amount offered to Operational Creditors. The Tribunal dismissed these objections, noting that they were not supported by specific averments and were an attempt to challenge the commercial wisdom of the CoC.

Conclusion:
The Tribunal approved the Resolution Plan submitted by Dera Finvest Private Limited with modifications, binding on all stakeholders. The moratorium under section 14 ceased, and the RP was directed to forward all records to the IBBI. The application by Chhattisgarh Distilleries Limited was rejected, and the deposited amount was ordered to be returned. The Tribunal emphasized adherence to applicable laws and allowed the Resolution Applicant to seek clarifications if needed.

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