Approval of Trimurti Concast's Resolution Plan under Insolvency Code: What you need to know

The Resolution Plan for Trimurti Concast Private Limited was approved under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, with 100% approval from the Committee of Creditors. The plan included payment schedules for various creditors and stakeholders, compliance with relevant regulations, and necessary reliefs granted by the Tribunal. The Tribunal found the plan met legal requirements, made it binding on all stakeholders, and discharged the Resolution Professional from most duties, except those related to plan implementation. The Resolution Plan was approved, and the case was disposed of accordingly.

---

---

Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with Insolvency and Bankruptcy Code and CIRP Regulations.
3. Evaluation and Voting on the Resolution Plan.
4. Salient features and compliance of the approved Resolution Plan.
5. Waivers, Reliefs, and Exemptions sought by the Resolution Applicant.
6. Findings and Orders of the Tribunal.

Issue-wise Analysis:

1. Approval of the Resolution Plan:
The application was filed by the Resolution Professional (RP) for Trimurti Concast Private Limited under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 39(4) of the CIRP Regulations, seeking approval of the Resolution Plan, which was approved by 100% of the Committee of Creditors (CoC) in the 18th CoC meeting held on 17.11.2021.

2. Compliance with Insolvency and Bankruptcy Code and CIRP Regulations:
The RP made a public announcement on 27.12.2019 and received claims from one financial creditor and nine operational creditors. The RP conducted 18 CoC meetings during the CIRP period. The RP issued multiple Form Gs due to the COVID-19 pandemic and received expressions of interest from various prospective resolution applicants. The final list of eligible applicants was published, and the RP facilitated discussions and negotiations with the resolution applicants.

3. Evaluation and Voting on the Resolution Plan:
In the 17th CoC meeting, only Shree Shailja Iron and Steels Pvt Ltd attended and revised its resolution plan. The revised plan was approved by 100% voting in the 18th CoC meeting. The approved plan included payment schedules for CIRP costs, secured financial creditors, operational creditors, and other stakeholders.

4. Salient Features and Compliance of the Approved Resolution Plan:
The Resolution Plan provided for the payment of CIRP costs, operational creditors, and financial creditors. It included compliance with Section 30(2) of the Code and Regulation 37 of the CIRP Regulations. The plan also addressed the management and implementation of the corporate debtor's affairs, ensuring the plan's feasibility and viability. The RP submitted a compliance certificate in Form H, confirming adherence to the Code and CIRP Regulations.

5. Waivers, Reliefs, and Exemptions Sought by the Resolution Applicant:
The Resolution Applicant sought various reliefs, waivers, and concessions, which the Tribunal granted to the extent permissible under the IBC and judicial precedents. The Tribunal extinguished all liabilities of stakeholders after the payment of dues as per the resolution plan, following the judgment in Ghanashyam Mishra & Sons Pvt Ltd v. Edelweiss Asset Reconstruction Company Ltd. The Tribunal directed the Resolution Applicant to approach concerned authorities for specific reliefs and exemptions.

6. Findings and Orders of the Tribunal:
The Tribunal found that the Resolution Plan met the requirements of Sections 30 and 31 of the IBC and complied with Regulations 38 and 39 of the CIRP Regulations. The Resolution Plan was approved and made binding on the Corporate Debtor and other stakeholders, with the moratorium ceasing from the date of the order. The RP was directed to submit records to the Insolvency & Bankruptcy Board of India and was discharged from duties, except for those related to the implementation of the approved Resolution Plan. The Tribunal granted liberty to file applications for implementation-related issues and directed the RP to hand over records and premises to the Resolution Applicant.

Orders:
The Resolution Plan was approved and made binding on all stakeholders. The RP was directed to submit records to the Insolvency & Bankruptcy Board of India and was discharged from duties except for implementation-related tasks. The Tribunal granted liberty to file applications for implementation-related issues and directed the RP to hand over records and premises to the Resolution Applicant. The main Company Petition and the application were disposed of accordingly.

---