Resolution Plan Approved under Insolvency & Bankruptcy Code, 2016

The Tribunal approved the Resolution Plan under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016, confirming compliance with the Code and Regulations. The plan, approved by the Committee of Creditors, met all requirements, including eligibility of Resolution Applicants under Section 29A. Provisions for effective implementation were in place, with a Monitoring Professional appointed. The Resolution Plan satisfied all Code and Regulation requirements, binding on the corporate debtor and stakeholders, leading to the cessation of the moratorium order and disposal of the application and petition.

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Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with Section 30(2) of the Code.
3. Effective implementation of the Resolution Plan.
4. Eligibility of the Resolution Applicants under Section 29A of the Code.
5. Satisfaction of the requirements of the Code and Regulations.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan:
The application was filed by the Resolution Professional for approval of the Resolution Plan submitted by the Joint Resolution Applicants under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016. The Resolution Plan had been duly approved by the Committee of Creditors (CoC) and was placed on record. The Tribunal confirmed that the Resolution Plan was compliant with the Code and Regulations, and thus, approved it under Section 31(1) of the Code.

2. Compliance with Section 30(2) of the Code:
The Tribunal examined whether the Resolution Plan met the requirements of Section 30(2) of the Code. The Resolution Professional certified that the Resolution Plan provided for:
- Payment of insolvency resolution process costs in priority to other debts.
- Payment of debts of operational creditors not less than the amount payable in the event of liquidation.
- Management of the affairs of the corporate debtor after approval.
- Implementation and supervision of the Resolution Plan.
- Conformity to the provisions of the law and other requirements specified by the Board.

The Tribunal noted that the Resolution Plan was approved by 100% voting share of the CoC and met all the conditions specified in Section 30(2).

3. Effective Implementation of the Resolution Plan:
The Tribunal ensured that the Resolution Plan had provisions for its effective implementation. The Resolution Professional certified that the Resolution Plan included:
- The term of the plan and its implementation schedule.
- Management and control of the business of the corporate debtor during the term of the plan.
- Adequate means for supervising its implementation.

The Resolution Applicants appointed a Monitoring Professional to supervise the implementation of the plan for a period of two years.

4. Eligibility of the Resolution Applicants under Section 29A of the Code:
The Tribunal confirmed that the Resolution Applicants were eligible under Section 29A of the Code. The Resolution Professional stated that the Resolution Applicants had submitted an affidavit confirming their eligibility, and the corporate debtor’s account was never classified as a 'Non-Performing Asset' by the bank.

5. Satisfaction of the Requirements of the Code and Regulations:
The Tribunal was satisfied that all the requirements of the Code and Regulations were fulfilled. The Resolution Plan was compliant with Section 30(2) and Section 31 of the Code and Regulation 38 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Resolution Plan addressed the interests of all stakeholders, and there were no objections from any stakeholders regarding its approval.

Conclusion:
The Tribunal approved the Resolution Plan, declaring it binding on the corporate debtor, its members, employees, creditors, and other stakeholders involved in the plan. The moratorium order ceased to have effect, and the Resolution Professional was directed to forward all records relating to the CIRP process and the Resolution Plan to the IBBI. The application and petition were disposed of accordingly.

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