Approval of Resolution Plan for Apex Heights Pvt. Ltd. Consortium

The Resolution Plan submitted by the Resolution Applicant, a consortium of M/s. Apex Heights Pvt. Ltd. and Mr. Satnam Singh Sachdeva, was approved and sanctioned by the Tribunal. The plan included provisions for disbursement of funds, job security for employees, completion of the real estate project, restructuring of equity shares, establishment of a monitoring committee, and compliance with relevant sections of the Insolvency and Bankruptcy Code. The plan aimed to address the claims of financial creditors, operational creditors, and other stakeholders while ensuring the successful resolution of the Corporate Insolvency Resolution process.

---

---

Issues Involved:
1. Approval of the Resolution Plan.
2. Claims of Financial Creditors.
3. Claims of Operational Creditors.
4. Fair Value and Liquidation Value of the Corporate Debtor.
5. Resolution Applicant's Proposal and Financial Plan.
6. Disbursement of Funds and Payments.
7. Job Security for Employees and Workmen.
8. Completion of the Real Estate Project.
9. Claims of Syndicate Bank as a Secured Creditor.
10. Release of Title Documents and Security.
11. Restructuring of Equity Shares.
12. Establishment of the Monitoring Committee.
13. Claims from Greater Noida Authority.
14. Waivers Sought by the Resolution Applicant.
15. Compliance with Section 30(2) and Section 31(3)(b) of the Insolvency and Bankruptcy Code.

Detailed Analysis:

1. Approval of the Resolution Plan:
A Resolution Plan, duly approved by the Committee of Creditors (CoC), was submitted for sanction. The Corporate Insolvency Resolution (CIR) process was initiated at the instance of an Operational Creditor.

2. Claims of Financial Creditors:
The claims of Financial Creditors were collated and admitted. The Syndicate Bank, a secured creditor, had a claim of Rs. 10,35,18,741, while Home Buyers/Allottees had claims amounting to Rs. 84,33,50,117.

3. Claims of Operational Creditors:
Claims from Operational Creditors, including workmen and employees, were also considered. The total claims admitted amounted to Rs. 2,40,25,460 for Operational Creditors and Rs. 12,52,676 for workmen and employees.

4. Fair Value and Liquidation Value of the Corporate Debtor:
The Tribunal opined that liquidation was not a viable solution for Real Estate Projects, especially considering the significant investments by home buyers. The home buyers constituted 89.07% of the financial claimants.

5. Resolution Applicant's Proposal and Financial Plan:
The Resolution Applicant, a consortium of M/s. Apex Heights Pvt. Ltd. and Mr. Satnam Singh Sachdeva, proposed to raise funds through their own resources, sale of unsold inventory, and arrears from allottees. An initial input of Rs. 6 crores was planned.

6. Disbursement of Funds and Payments:
The Tribunal directed that the amount of Rs. 6 crores be disbursed within 45 days from the date of the order. This amount was to cover CIRP costs and 10% of the admitted claims of Operational Creditors, including workmen and employees.

7. Job Security for Employees and Workmen:
The Resolution Applicant committed to continuing the employment of all employees and workmen whose claims had been admitted, thereby providing job security.

8. Completion of the Real Estate Project:
The Resolution Applicant undertook to complete the project within 36 months using personal resources, sale of unsold units, and amounts due from allottees. They assured compliance with necessary regulations to provide possession and conveyance deeds to flat buyers.

9. Claims of Syndicate Bank as a Secured Creditor:
The Plan provided for the extinguishment of Syndicate Bank's claim of Rs. 10,35,000 through the release of matured proceeds under an FDR and payment of the remaining amount in 24 equal monthly installments.

10. Release of Title Documents and Security:
Syndicate Bank was directed to release the title documents of the project land upon the furnishing of fresh personal guarantees and securities by the ex-Directors. The Tribunal ensured that sufficient security was held for the balance of the admitted claim.

11. Restructuring of Equity Shares:
The existing equity shares of the Corporate Debtor were to be canceled and restructured in favor of the Resolution Applicant and its nominees. The Resolution Applicant was to infuse Rs. 20 lakhs for the issuance of new equity shares.

12. Establishment of the Monitoring Committee:
A Monitoring Committee was to be established, including nominees of the Resolution Applicant, a nominee of Syndicate Bank, and two representatives of the flat Allottees Association to ensure the interests of allottees and timely project completion.

13. Claims from Greater Noida Authority:
No claim was received from Greater Noida Authority, although an amount of Rs. 9,77,43,33 was to be paid. The Resolution Applicant proposed to pay 10% of this Operational Debt in 24 equal installments.

14. Waivers Sought by the Resolution Applicant:
The Tribunal clarified that all claims from Statutory Authorities received during the CIR process should be considered, and provisions should be made for those not mentioned in the Resolution Plan.

15. Compliance with Section 30(2) and Section 31(3)(b) of the Insolvency and Bankruptcy Code:
The Resolution Plan adhered to the requirements of Section 30(2) of the Code. The moratorium imposed previously ceased to have effect, and the Resolution Professional was directed to comply with Section 31(3)(b) by forwarding all records to the Board.

Conclusion:
The Resolution Plan was approved and sanctioned, adhering to the requirements and ensuring the interests of all stakeholders, including financial creditors, operational creditors, home buyers, and employees.

---