Tribunal approves Resolution Plan for M/S. JNC Constructions Private Limited under Insolvency and Bankruptcy Code, 2016

The Tribunal approved the Resolution Plan submitted by M/s. Gautam Builders in consortium with Rapid Contracts Pvt. Ltd. for M/S. JNC Constructions Private Limited, ensuring compliance with the Insolvency and Bankruptcy Code, 2016. The plan addressed objections and applications for withdrawal, detailed payment terms for different creditors, and established provisions for plan implementation and monitoring. The Resolution Professional was directed to provide records to the Insolvency and Bankruptcy Board of India, and the Resolution Applicant was instructed to comply with all laws and obtain necessary approvals within one year.

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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 Section 30(2) of the Insolvency and Bankruptcy Code, 2016.
3. Consideration of objections and applications for withdrawal of the Corporate Insolvency Resolution Process (CIRP).
4. Payment and settlement terms for various classes of creditors.
5. Implementation and monitoring of the approved Resolution Plan.

Detailed Analysis:

1. Approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016:
The application was filed by the Resolution Professional seeking approval of the Resolution Plan for the corporate debtor, M/S. JNC Constructions Private Limited. The Resolution Plan was submitted by M/s. Gautam Builders in consortium with Rapid Contracts Pvt. Ltd. and was approved by the Committee of Creditors (CoC) with 96.07% votes. The Tribunal approved the Resolution Plan under Section 31(1) of the Code, noting that all requirements of Section 30(2) were fulfilled and no provisions of the law were contravened.

2. Compliance with Section 30(2) of the Insolvency and Bankruptcy Code, 2016:
The Resolution Professional confirmed that the Resolution Plan complied with Section 30(2) of the Code, including:
- Section 30(2)(a): The plan provided for payment of CIRP costs in priority over other debts.
- Section 30(2)(b): The plan ensured payment to operational creditors as per the liquidation value.
- Section 30(2)(c): Management of the corporate debtor post-approval was outlined, ensuring the company would continue as a going concern.
- Section 30(2)(d): Adequate means for supervising the implementation of the plan were provided.
- Section 30(2)(e): The plan did not contravene any provisions of the law in force.
- Section 30(2)(f): The plan adhered to all applicable laws.

3. Consideration of objections and applications for withdrawal of the Corporate Insolvency Resolution Process (CIRP):
The ex-director filed an application (I.A. 1802 (PB)/ 2020) for withdrawal of the CIRP based on a settlement, which was rejected. The Tribunal noted that the settlement conditions were not fulfilled, and the plan had already been approved by the CoC. The objections raised by the suspended director were found to be without merit, and the application was dismissed.

4. Payment and settlement terms for various classes of creditors:
The approved Resolution Plan detailed the payment terms for different classes of creditors:
- CIRP Costs: 100% payment within 90 days from the effective date.
- Secured Financial Creditors: 2% payment in 10 equal quarterly installments after two years.
- Operational Creditors: 60% payment after project completion.
- Employees: 60% payment within 90 days.
- Statutory Dues: 10% payment in line with payments to other authorities.
- Homebuyers: Various terms including delay penalties and no additional charges for increased area/FAR.

5. Implementation and monitoring of the approved Resolution Plan:
The plan provided for a monitoring committee consisting of representatives from lenders and the resolution applicant. The Tribunal granted liberty to the monitoring committee to seek further directions if necessary. The Resolution Professional was directed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI).

The approved Resolution Plan became effective from the date of the order, and the Resolution Applicant was directed to adhere to all applicable laws and obtain necessary approvals within one year.

Conclusion:
The Tribunal approved the Resolution Plan submitted by M/s. Gautam Builders in consortium with Rapid Contracts Pvt. Ltd., ensuring compliance with the Insolvency and Bankruptcy Code, 2016, and addressing the objections and applications for withdrawal. The detailed payment and settlement terms for various creditors were outlined, and provisions for the implementation and monitoring of the plan were established.

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