Tribunal approves Resolution Plans for three companies, emphasizes compliance and creditor wisdom.

The Tribunal approved the Resolution Plans submitted by UV Asset Reconstruction Company Limited for three companies, emphasizing compliance with legal requirements and the commercial wisdom of the Committee of Creditors. The approval included specific modifications and granted certain reliefs sought by the Resolution Applicant, while stressing the need for post-approval compliance. The decision was binding on all stakeholders, with the moratorium under the Insolvency & Bankruptcy Code ceasing to have effect. The Resolution Professional was directed to submit records to the Insolvency and Bankruptcy Board of India and file the order with the Registrar of Companies.

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Issues Involved:
1. Approval of the Resolution Plans under section 30(6) read with section 31(1) of the Insolvency & Bankruptcy Code (IBC).
2. Compliance with the requirements under section 30(2) of the IBC.
3. Evaluation of the commercial wisdom of the Committee of Creditors (CoC).
4. Reliefs, concessions, and dispensations sought by the Resolution Applicant.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plans:
The Resolution Professional (RP) filed three Interlocutory Applications (IAs) seeking approval of the Resolution Plans submitted by UV Asset Reconstruction Company Limited (UVARC) for Aircel Limited, Dishnet Wireless Limited, and Aircel Cellular Limited. The Tribunal acknowledged the substantial interweave of businesses among these companies and decided to dispose of all three IAs through a single order.

2. Compliance with the Requirements under Section 30(2) of the IBC:
The Tribunal examined whether the Resolution Plans met the requirements of section 30(2) of the IBC:

- CIRP Costs: The Resolution Plans provided for the payment of insolvency resolution process costs in priority to other debts.
- Operational Creditors: The Plans earmarked specific amounts for employees and operational creditors, ensuring that they would receive at least the liquidation value.
- Management and Implementation: The Plans included provisions for the management of the corporate debtors post-approval and detailed steps for the implementation and supervision of the Resolution Plans.
- Legal Compliance: The Plans did not contravene any provisions of the law.

3. Evaluation of the Commercial Wisdom of the CoC:
The Tribunal acknowledged the commercial wisdom of the CoC, which approved the Resolution Plans by a margin of 73.88%, more than the statutory minimum of 66%. The CoC's decision was based on the feasibility and viability of the Plans, considering the interconnected nature of the businesses and the potential for asset monetization. The Tribunal referred to the Supreme Court judgments in K. Sashidhar v. Indian Overseas Bank and Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta, which emphasized the non-justiciability of the CoC’s commercial decisions.

4. Reliefs, Concessions, and Dispensations Sought by the Resolution Applicant:
The Resolution Applicant sought various reliefs, including exemptions from certain legal compliances, waivers of penalties, and continuation of business permits. The Tribunal granted several of these requests, particularly those related to tax benefits, stamp duty exemptions, and the continuation of business permits. However, it denied blanket approvals for waivers of non-compliances and emphasized the need for the Resolution Applicant to comply with legal requirements post-approval.

Conclusion:
The Tribunal approved the Resolution Plans with specific modifications, emphasizing the importance of compliance with legal requirements and the commercial wisdom of the CoC. The approval was binding on all stakeholders, and the moratorium imposed under section 14 of the IBC ceased to have effect from the date of the order. The RP was directed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI) and file a copy of the order with the Registrar of Companies, Maharashtra, Mumbai.

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