Insolvency Case: Resolution Plan Modified to Prioritize Workmen Payment

The application under section 9 of the Insolvency and Bankruptcy Code, 2016 was admitted, leading to the appointment of various Resolution Professionals. After multiple replacements, the final Resolution Plan was approved unanimously by the Committee of Creditors. The Resolution Professional ensured compliance with all statutory requirements and submitted the Plan addressing stakeholders' interests. However, a modification was required to prioritize payment to workmen. The modified Plan, approved by the Committee and the Tribunal, would bind all stakeholders, marking the end of the moratorium order. Records were to be forwarded to the Insolvency and Bankruptcy Board of India, concluding the case.

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Issues:
1. Application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process.
2. Appointment and replacement of Resolution Professionals.
3. Conduct of Committee of Creditors meetings.
4. Appointment of valuers, auditors, and forensic auditors.
5. Submission and approval of Resolution Plan.
6. Compliance with provisions of the Insolvency and Bankruptcy Code, 2016.
7. Priority of payment to workmen in the Resolution Plan.

Analysis:

1. The application was filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by an operational creditor for initiating the Corporate Insolvency Resolution Process against the corporate debtor. The application was admitted, and various Resolution Professionals were appointed during the proceedings.

2. The initial Interim Resolution Professional was replaced by a new Resolution Professional appointed by the Committee of Creditors. After subsequent replacements and appointments, the final Resolution Professional submitted the Resolution Plan, which was approved by 100% vote share of the Committee of Creditors.

3. Eleven Committee of Creditors meetings were conducted, with the final Resolution Plan being approved unanimously in the 11th meeting. The Resolution Professional ensured the compliance with all requirements under section 30(2) of the Insolvency and Bankruptcy Code, 2016.

4. Valuers, auditors, and forensic auditors were appointed by the Resolution Professional to assess the corporate debtor's assets and financial situation. Various reports were submitted, including valuation reports and forensic audit reports, to facilitate the Resolution Plan.

5. The Resolution Professional certified compliance with all provisions of the Insolvency and Bankruptcy Code, 2016 and submitted the Resolution Plan for approval. The Resolution Plan included details on how it addressed the interests of all stakeholders in accordance with the Code and Regulations.

6. Upon detailed examination of the Resolution Plan, it was noted that the priority of payment to workmen was overlooked. Consequently, the Resolution Professional was directed to modify the Plan to ensure proper payment to workmen, leading to the submission of a modified Resolution Plan in compliance with the Code and Regulations.

7. The modified Resolution Plan, approved by the Committee of Creditors with 100% vote share, was ultimately approved by the Tribunal. The approved Plan would bind all stakeholders involved, and the revival plan would come into force immediately, ceasing the moratorium order. The Resolution Professional was directed to forward all records to the Insolvency and Bankruptcy Board of India, and the case was disposed of accordingly.

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