Corporate Insolvency Resolution Process: Approved Plan for VSP Udyog Private Limited

The National Company Law Tribunal, Kolkata, admitted the Company Petition, initiating Corporate Insolvency Resolution Process against M/s. VSP Udyog Private Limited. The Resolution Plan of M/s. Amit Metaliks Limited was approved by the Committee of Creditors with 95.35% voting shares. After evaluating multiple plans, the revised Resolution Plan was approved, addressing financial proposals, upfront payments, and CIRP costs. The Tribunal found the Plan feasible and in stakeholders' best interest, directing its immediate implementation and cessation of the moratorium order. The Resolution Professional was tasked with transferring records to the Insolvency and Bankruptcy Board of India, concluding the matter without costs.

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Issues: Approval of Resolution Plan under Insolvency and Bankruptcy Code

1. Admission of Company Petition and Appointment of Insolvency Resolution Professional:
The Company Petition (CP(IB) No. 1221/KB/2018) was admitted, ordering Corporate Insolvency Resolution Process against the Corporate Debtor, M/s. VSP Udyog Private Limited. Mr. Raj Singhania was appointed as the Insolvency Resolution Professional.

2. Filing and Approval of Resolution Plan:
The Resolution Professional filed an Application seeking approval of the Resolution Plan of M/s. VSP Udyog Private Limited under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors approved the Resolution Plan of M/s. Amit Metaliks Limited with 95.35% voting shares.

3. Consideration of Resolution Plans by Committee of Creditors:
The Committee of Creditors, constituted after 15 meetings, received three Resolution Plans within the prescribed time limit. The Resolution Plans were evaluated, and M/s. Amit Metaliks Limited was declared as the H-1 bidder.

4. Revised Resolution Plan and Approval Process:
After certain developments during the lockdown period, M/s. Amit Metaliks Limited submitted a revised Resolution Plan, which was approved by the Committee of Creditors through e-voting with 95.35% voting share. The Resolution Professional confirmed compliance with the Resolution Plan requirements.

5. Financial Proposal and CIRP Cost:
The Resolution Plan included detailed financial proposals, upfront payments, and provisions for CIRP costs. The Resolution Applicant's capability to implement the Plan and specific funding sources were highlighted, ensuring compliance with legal provisions.

6. Compliance and Certification:
The Resolution Professional submitted a Compliance Certificate confirming examination and approval of the Resolution Plan. The Resolution Plan was deemed to balance the interests of all stakeholders and not contravene any legal provisions.

7. Approval and Implementation of Resolution Plan:
The Resolution Plan was found feasible, viable, and in the best interest of stakeholders. The Plan addressed payment priorities, management of Corporate Debtor affairs, and implementation schedules. The approval was granted considering compliance with all legal requirements.

8. Directions and Conclusion:
The Tribunal approved the Resolution Plan of M/s. Amit Metaliks Limited, binding all relevant parties, and directed the Resolution Plan to come into force immediately. The moratorium order ceased to have effect, and the Resolution Professional was instructed to forward all records to the Insolvency and Bankruptcy Board of India. The Company Petition was disposed of with no order as to costs, and communication of the Order was directed to concerned parties.

This detailed analysis covers the admission, approval, financial aspects, compliance, and final directions related to the Resolution Plan under the Insolvency and Bankruptcy Code, as per the judgment delivered by the National Company Law Tribunal, Kolkata.

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