Approval of SREI's Final Resolution Plan; RP's Actions Upheld; Proceedings Concluded

The Final Resolution Plan submitted by SREI Multiple Asset Investment Trust (Vision India Fund) was approved by the Adjudicating Authority. The plan received 92.74% of the Committee of Creditors' votes in favor. Allegations against the Resolution Professional (RP) regarding statutory duties and preferential treatment to certain creditors were countered and found unsubstantiated. The RP's compliance with Section 29A(c) of the Insolvency and Bankruptcy Code, 2016 was clarified. The Adjudicating Authority confirmed the plan's compliance with legal requirements, ceased the moratorium, and directed all parties to cooperate in implementing the plan, ultimately disposing of the proceedings.

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Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP)
2. Appointment of Interim Resolution Professional (IRP) and Resolution Professional (RP)
3. Publication and extension of Expression of Interest (EoI) for Resolution Plan
4. Submission and approval of Resolution Plan
5. Allegations against the RP regarding statutory duties and related party issues
6. Preferential treatment to certain creditors
7. Compliance with Section 29A(c) of the Insolvency and Bankruptcy Code, 2016 (IBC 2016)
8. Final approval of the Resolution Plan by the Adjudicating Authority

Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process (CIRP):
IDBI Bank Limited, a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC 2016) to initiate CIRP against the Corporate Debtor. The application was admitted, a moratorium was declared, and Mr. Bijay Murmuria was appointed as the Interim Resolution Professional (IRP).

2. Appointment of Interim Resolution Professional (IRP) and Resolution Professional (RP):
In the first Committee of Creditors (CoC) meeting, Mr. Bijay Murmuria was confirmed as the Resolution Professional (RP). The RP published invitations for Expression of Interest (EoI) for submission of a Resolution Plan.

3. Publication and Extension of Expression of Interest (EoI) for Resolution Plan:
The RP published EoI in various newspapers with an initial submission deadline, which was extended due to no submissions. Eventually, three entities submitted EoIs, and the RP provided necessary documents to these applicants.

4. Submission and Approval of Resolution Plan:
The RP received only one Resolution Plan from SREI Multiple Asset Investment Trust (Vision India Fund). The plan was discussed and revised as per amendments in regulations. The CoC approved the plan with 92.74% votes in favor, while 7.26% voted against it.

5. Allegations Against the RP Regarding Statutory Duties and Related Party Issues:
IDBI Bank Limited alleged that the RP failed to discharge his statutory duties, specifically:
- Not following the mandate in Section 21(2) regarding related parties in CoC.
- Violating Section 29A(c) concerning eligibility of resolution applicants.
- Granting preferential treatment to SREI Infrastructure Finance Limited.

The RP countered these allegations, stating that the CoC's constitution was communicated early and no objections were raised until much later. The RP provided substantial information regarding the family tree of the Corporate Debtor's promoters, and the related party allegations were deemed unsubstantiated.

6. Preferential Treatment to Certain Creditors:
The contention was that the Code does not allow preferential treatment among secured creditors during CIRP. However, the RP and legal opinions supported the classification of creditors based on their charge on assets, which was found to be logical and not arbitrary.

7. Compliance with Section 29A(c) of the Insolvency and Bankruptcy Code, 2016 (IBC 2016):
IDBI Bank Limited argued that the Resolution Applicant was ineligible under Section 29A(c) due to involvement with a non-performing asset. The RP clarified that the Resolution Applicant, being an Alternative Investment Fund registered with SEBI, was exempt from this prohibition.

8. Final Approval of the Resolution Plan by the Adjudicating Authority:
The Adjudicating Authority examined the Final Resolution Plan and found it compliant with the requirements of Section 30(2) of IBC 2016. The plan was approved, and the moratorium ceased to have effect. All relevant parties were directed to cooperate with the implementation of the plan.

The judgment concluded by approving the Final Resolution Plan submitted by SREI Multiple Asset Investment Trust (Vision India Fund), binding all stakeholders and directing compliance with the plan's terms. The proceedings were disposed of accordingly.

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