Tribunal Approves Resolution Plan under Insolvency & Bankruptcy Code, 2016

The Tribunal approved the Resolution Plan submitted by Mr. S. K. Mitra, meeting all requirements under the Insolvency and Bankruptcy Code, 2016. Smt. Rinita Mitra's claim was dismissed for lack of substantiation, and the Buyer's application was disposed of with directions for the execution of a conveyance deed provision in the Resolution Plan. The Tribunal commended Resolution Professional Mr. Prabhjit Singh Soni for successfully concluding the resolution process.

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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. Objection by Smt. Rinita Mitra regarding her claim of Rs. 2,47,27,460/-.
3. Objection by a Buyer regarding the execution of the sale deed for a property.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan:
The Resolution Professional (RP) filed an application under Section 30(6) read with Section 31 of the Insolvency and Bankruptcy Code, 2016, for the approval of a Resolution Plan. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, Southern Cooling Tower Pvt. Limited, following an application by an Operational Creditor. The Interim Resolution Professional (IRP) was appointed and continued the process as per the Code and Regulations, completing the CIRP within 180 days. The Resolution Plan was submitted on 16-07-2018 and approved by the Committee of Creditors (CoC) with a 100% voting share. The RP confirmed that the plan complied with all mandatory conditions under Regulation 38 of the CIRP Regulations, safeguarding the interests of all stakeholders and providing terms for payment, implementation, and management of the Corporate Debtor. The Tribunal approved the Resolution Plan, finding it met all requirements under the Code and Regulation 38(l)(a) of the CIRP Regulations.

2. Objection by Smt. Rinita Mitra:
Smt. Rinita Mitra filed an application claiming that she lent Rs. 2,47,27,460/- to the Corporate Debtor and that her claim had not been considered by the RP. She submitted her proof of claim in Form "F" on 23-02-2018, which was rejected by the RP. She then submitted another claim in Form "C" on 14-03-2018, which was also rejected. The RP argued that the public announcement calling for claims was made in widely circulated newspapers, and all claims received up to 21-02-2018 were considered. The RP verified her claim with the books of accounts and found no records supporting her claim. The Tribunal found that Smt. Mitra failed to substantiate her claim with adequate proof and that her claim was not found in the financial statements of the Corporate Debtor. The Tribunal dismissed her application, finding the RP and CoC's rejection of her claim to be legal and proper.

3. Objection by a Buyer:
A Buyer filed an application claiming that he had purchased a property from the Corporate Debtor and paid part of the consideration, but the sale deed was not executed due to the initiation of the Resolution Process. The Buyer argued that he should be considered a Financial Creditor under the amended provisions of the Code. The RP filed an affidavit stating that the CoC approved the Memorandum of Understanding for the sale of the property and that the advance amounts would be adjusted at the time of final payment. The Tribunal directed that a provision be made in the Resolution Plan for the execution of the conveyance deed in favor of the Buyer upon fulfilling the final payment. The Tribunal disposed of the Buyer's application accordingly.

Judgment:
The Tribunal approved the Resolution Plan submitted by Mr. S. K. Mitra, finding it met all requirements under the Insolvency and Bankruptcy Code, 2016, and the CIRP Regulations. The Tribunal dismissed Smt. Rinita Mitra's application, finding her claim unsubstantiated. The Tribunal disposed of the Buyer's application by directing the inclusion of a provision in the Resolution Plan for the execution of the conveyance deed. The Tribunal also appreciated the work rendered by the Resolution Professional, Mr. Prabhjit Singh Soni, for successfully completing the resolution process.

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