Approval of Resolution Plan for C.P. Ispat Pvt Ltd

The Resolution Plan submitted by C.P. Ispat Pvt Ltd was approved with 80.93% voting share after multiple CoC meetings and modifications. The Tribunal found the plan compliant with statutory requirements, granting certain reliefs while denying others. The plan was deemed viable for the Corporate Debtor's revival, with the Resolution Applicant instructed to fulfill obligations within one year. Moratorium was lifted, the RP discharged, and the plan made binding on all stakeholders. The main petition and application were disposed of accordingly.

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Issues Involved:
1. Approval of the Resolution Plan.
2. Collation of claims.
3. Evaluation and voting on the Resolution Plan.
4. Compliance with statutory requirements.
5. Waivers, reliefs, and exemptions sought by the Resolution Applicant.
6. Findings and orders of the Tribunal.

Detailed Analysis:

1. Approval of the Resolution Plan:
The application IA (IB) No.479/KB/2021 was moved on behalf of the Resolution Professional (RP) of Dimension Steel & Alloys Private Limited, invoking section 30(6) of the Insolvency & Bankruptcy Code, 2016 (IBC) read with regulation 39(4) of the CIRP Regulations for approval of the Resolution Plan.

2. Collation of Claims:
The Interim Resolution Professional (IRP) made a public announcement on 19.10.2019 calling for proof of claims from creditors. Claims were received from four financial creditors and fifteen operational creditors. The Committee of Creditors (CoC) constitution report was revised and filed by the RP.

3. Evaluation and Voting:
Invitations for Expressions of Interest (EoI) were published, and after multiple extensions, four EOIs were received. The final list of prospective resolution applicants included Prudent ARC Ltd, C.P. Ispat Private Limited, Satvik Enterprises Limited, and RKG Asset Management LLP. The Resolution Plan submitted by C.P. Ispat Pvt Ltd was eventually approved with 80.93% voting share after several CoC meetings and modifications.

4. Compliance with Statutory Requirements:
The Resolution Plan was evaluated for compliance with section 30(2) of the Code and regulations 37 and 38 of the CIRP Regulations. The plan provided for payment of CIRP costs, repayment of operational and financial creditors, management of the Corporate Debtor, and implementation and supervision of the plan.

5. Waivers, Reliefs, and Exemptions:
The Resolution Applicant sought several waivers and exemptions, including:
- Non-responsibility for previous liabilities not admitted by the RP.
- Adjustments in the value of assets and liabilities in the books of accounts.
- Carry forward of brought forward losses and GST credit.
- Exemption from taxes and stamp duties.
- Immunity from actions and penalties for non-compliances existing at the time of acquisition.
- Extinguishment of liabilities not part of the resolution plan.

The Tribunal granted some reliefs in line with the Supreme Court’s judgment in Ghanshyam Mishra & Sons Pvt Ltd v. Edelweiss Asset Reconstruction Company Ltd, which held that once a Resolution Plan is approved, a creditor cannot initiate proceedings for recovery of claims not part of the Resolution Plan. However, requests for exemptions from taxes and stamp duties were not granted.

6. Findings and Orders:
The Tribunal found the Resolution Plan to be viable and feasible for the revival of the Corporate Debtor, meeting the requirements of sections 30 and 31 of the IBC and regulations 38 and 39 of the CIRP Regulations. The Resolution Applicant was directed to comply with statutory obligations within one year. The Moratorium under section 14 was lifted, and the Resolution Professional was discharged from duties, except for those related to the implementation of the approved Resolution Plan. The Tribunal ordered the restoration of electricity to the Corporate Debtor’s premises and directed the Resolution Professional to hand over all records to the Resolution Applicant. The Resolution Plan was approved and made binding on all stakeholders. The main Company Petition and the application were disposed of accordingly.

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