Adjudicating Authority approves Resolution Plan under Insolvency & Bankruptcy Code

The Adjudicating Authority approved the Resolution Plan submitted by the RP and approved by the CoC, finding it compliant with the Insolvency and Bankruptcy Code. Shree Pushkar Chemicals and Fertilizers Limited emerged as the successful bidder with a bid higher than the liquidation value. Objections by creditors were dismissed, and the RP was directed to oversee the plan's implementation, handing over control to the successful applicant. The Adjudicating Authority dismissed certain interlocutory applications and directed the RP to file a compliance report, making the Resolution Plan binding on all parties involved.

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Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with procedural requirements and timelines under the Insolvency and Bankruptcy Code, 2016.
3. Evaluation and approval process of the Resolution Plan by the Committee of Creditors (CoC).
4. Jurisdiction and authority of the Adjudicating Authority.
5. Objections and claims by creditors and other stakeholders.
6. Implementation and supervision of the approved Resolution Plan.
7. Withdrawal and dismissal of interlocutory applications.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan:
The application was filed by the Resolution Professional (RP) seeking approval of the Resolution Plan, which was duly approved by 100% voting of the CoC under Section 30(4) of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority reviewed the documents and found that the Resolution Plan met all the requirements of Section 30 of the Insolvency and Bankruptcy Code, 2016, including provisions for its effective implementation.

2. Compliance with Procedural Requirements and Timelines:
The application was within the jurisdiction of the bench and filed within the time frame provided under Section 12 of the Insolvency and Bankruptcy Code, 2016. The RP issued a public announcement and invited claims from creditors, constituting the CoC with voting shares allocated to Punjab National Bank (PNB) and SIDBI. The RP conducted multiple CoC meetings, where decisions regarding the appointment of valuers, publication of Form G, and evaluation of resolution plans were made in compliance with the Code.

3. Evaluation and Approval Process by CoC:
The CoC evaluated two Resolution Plans from R.M. Phosphates and Chemicals Private Ltd., and Shree Pushkar Chemicals and Fertilizers Limited. After an open bidding process, Shree Pushkar Chemicals and Fertilizers Limited was declared the H1 bidder. The CoC approved the final Resolution Plan, which offered a financial bid of INR 18.15 Crores, higher than the liquidation value of INR 11.61 Crores. The plan was deemed suitable and viable by the CoC.

4. Jurisdiction and Authority of the Adjudicating Authority:
The Adjudicating Authority confirmed its jurisdiction to entertain the application and directed the CoC to relook the Resolution Plan in conformity with the Supreme Court's decision. The CoC reconfirmed the Resolution Plan's conformity in its 12th meeting.

5. Objections and Claims by Creditors and Other Stakeholders:
DCM Shriram Limited filed an application claiming to be a Financial Creditor, which was rejected. Other interlocutory applications (IA 83 of 2019, IA 220 of 2019, and IA 291 of 2019) were also dismissed as withdrawn or rejected due to lack of merit.

6. Implementation and Supervision of the Approved Resolution Plan:
The Resolution Plan included provisions for the priority of payments, sources of funding, term and implementation schedule, management control, and supervision of the plan. A monitoring committee was constituted to oversee the implementation. The RP was directed to hand over all records, books of accounts, assets, and documents to the successful Resolution Applicant, Shree Pushkar Chemicals & Fertilizers Ltd.

7. Withdrawal and Dismissal of Interlocutory Applications:
The Adjudicating Authority dismissed IA 83 of 2019 as withdrawn and rejected IA 220 of 2019 and IA 291 of 2019 due to lack of merit. The moratorium order ceased to have effect, and the RP was directed to file a compliance report.

Conclusion:
The Adjudicating Authority approved the Resolution Plan submitted by the RP and approved by the CoC. The Resolution Plan is now binding on the Corporate Debtor and all stakeholders. The RP is directed to hand over control to Shree Pushkar Chemicals & Fertilizers Ltd. and file a compliance report. The Registry is directed to communicate the order to all relevant parties.

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