Resolution plan for M/s. ICOMM Tele Ltd approved under Insolvency and Bankruptcy Code

The adjudicating authority approved the resolution plan for Corporate Debtor, M/s. ICOMM Tele Ltd, as it complied with the requirements of Section 30(2) of the Insolvency and Bankruptcy Code, 2016. The plan, approved by 83.89% of the Committee of Creditors, includes payment schedules for various stakeholders and the formation of an Implementation and Monitoring Committee to oversee its execution. The moratorium was terminated, and records were forwarded to the Insolvency and Bankruptcy Board of India. IA No. 577 of 2019 was disposed of as allowed.

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Issues Involved:
1. Approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with the provisions of the Insolvency and Bankruptcy Code, 2016 and related regulations.
3. Distribution and payment to various categories of creditors.
4. Implementation and supervision of the approved Resolution Plan.
5. Termination of the moratorium and forwarding of records to IBBI.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016:
The application IA No. 577 of 2019 was filed by the Resolution Professional (RP) seeking approval of the resolution plan for the Corporate Debtor, M/s. ICOMM Tele Ltd, as approved by the Committee of Creditors (COC). The resolution plan was approved by 83.89% of the COC members. The adjudicating authority must ensure that the resolution plan meets the requirements specified in Section 30(2) of the Code before granting approval.

2. Compliance with the provisions of the Insolvency and Bankruptcy Code, 2016 and related regulations:
The RP confirmed that the resolution plan complies with the provisions of the Code and regulations, including Section 30(2) and Regulation 38(1A) of the CIRP Regulations. The RP also submitted a compliance certificate in Form H and an affidavit stating compliance with the amended provisions of the Code. The plan includes payment of insolvency resolution process costs, repayment of debts to operational creditors, management of the Corporate Debtor’s affairs post-approval, and implementation and supervision of the resolution plan.

3. Distribution and payment to various categories of creditors:
The resolution plan details the payment schedule and amounts to be paid to different categories of stakeholders. The CIRP costs, financial creditors, employees, and operational creditors are allocated specific amounts, with detailed timelines for upfront and balance payments. The financial proposal includes payments to financial creditors, operational creditors, employees, and other creditors, ensuring compliance with the Code’s requirements.

4. Implementation and supervision of the approved Resolution Plan:
The adjudicating authority ordered the constitution of an Implementation and Monitoring Committee, consisting of the RP, a representative nominated by the Resolution Applicant, and a representative nominated by the Financial Creditors. This committee will supervise the implementation of the resolution plan. The RP is directed to file the status of implementation before the adjudicating authority periodically.

5. Termination of the moratorium and forwarding of records to IBBI:
The order of moratorium passed under Section 14 of the I&B Code, 2016, shall cease to have effect from the date of passing of this order. The RP is directed to forward all records relating to the conduct of the CIRP and the resolution plan to the IBBI along with a copy of the order, so that the Board may record the same in its database. The RP is also required to send a copy of the order to the participants and the Resolution Applicant.

Conclusion:
The adjudicating authority approved the resolution plan as it met the requirements of Section 30(2) of the I&B Code, 2016, and related regulations. The plan is binding on all stakeholders, including the Corporate Debtor, employees, members, creditors, and government authorities. The resolution plan becomes effective from the date of the order, and the Implementation and Monitoring Committee will oversee its execution. The moratorium ceases, and records are forwarded to the IBBI for documentation. IA No. 577 of 2019 is disposed of as allowed.

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