Resolution plan approved under CIRP after confirming compliance with Sections 29A, 30, 31 and Regulations 38, 39

The NCLT Chandigarh approved a resolution plan under CIRP after finding it complied with Sections 29A, 30, and 31 of the Code and Regulations 38 and 39 of CIRP Regulations. The resolution applicants confirmed through affidavits they were not disqualified under Section 29A, and the Resolution Professional certified compliance in Form H. The Committee of Creditors had approved the plan dated 19.08.2020 with addendum dated 30.09.2020. An operational creditor's application for impleadment seeking approval modifications was dismissed as the approved resolution plan satisfied all statutory requirements.

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Issues Involved:
1. Initiation and continuation of Corporate Insolvency Resolution Process (CIRP)
2. Compliance with the Insolvency and Bankruptcy Code (IBC) and related regulations
3. Approval and implementation of the resolution plan
4. Impleadment applications by operational creditors

Summary:

1. Initiation and Continuation of CIRP:
The State Bank of India filed CP (IB) No. 114/Chd/Pb/2017 u/s 7 of the Code for initiating CIRP against SEL Manufacturing Company Limited. The Tribunal admitted the petition on 11.04.2018 and declared a moratorium. The corporate debtor challenged this order, but the Hon'ble High Court and the Supreme Court did not grant a stay. The IRP was appointed, and despite various legal challenges, the CIRP continued, with periods of stay being excluded from the CIRP timeline.

2. Compliance with IBC and Related Regulations:
The Tribunal examined the resolution plan in light of mandatory requirements u/s 30(2) of the Code. The plan provided for:
- Payment of insolvency resolution process costs in priority (Section 30(2)(a)).
- Payments to operational creditors as per Section 30(2)(b).
- Management of the corporate debtor post-approval (Section 30(2)(c)).
- Implementation and supervision mechanisms (Section 30(2)(d)).
- Compliance with existing laws (Section 30(2)(e)).
The RP certified compliance with all relevant regulations, including Regulation 39(4) of the CIRP Regulations.

3. Approval and Implementation of the Resolution Plan:
The resolution plan submitted by the Consortium of ARR ESS Industries Private Limited and Leading Edge Commercial FZE was approved by the Committee of Creditors (COC) with a 96.90% majority. The Tribunal found that the plan met all statutory requirements and did not contravene any laws. The plan was binding on all stakeholders, and the moratorium order ceased to have effect. The RP was directed to forward all CIRP records to IBBI.

4. Impleadment Applications by Operational Creditors:
IA No. 772/2020 and IA No. 773/2020 were filed by operational creditors seeking impleadment in IA No. 703/2020. Both applications were dismissed as the Tribunal found that the approved resolution plan satisfied all requirements of the Code and Regulations, rendering further orders unnecessary.

Orders:
- The resolution plan was approved and made binding on all stakeholders.
- The moratorium order ceased to have effect.
- The RP was instructed to forward CIRP records to IBBI.
- IA No. 703/2020 was disposed of, and IA Nos. 772/2020 & 773/2020 were dismissed.

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