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of <h1>Successful resolution plan under Insolvency & Bankruptcy Code ensures stakeholder compliance and company revival</h1> <h3>Ritesh More Versus Marsons Limited And Sanjit Kumar Nayak</h3> Ritesh More Versus Marsons Limited And Sanjit Kumar Nayak - TMI Issues:1. Application under section 9 of Insolvency & Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process (CIRP) due to default in payment of operational debt.2. Admission of corporate debtor in CIRP, appointment of Interim Resolution Professional, and issuance of moratorium.3. Formation of Committee of Creditors (CoC) and voting percentages allotted to financial creditors.4. Confirmation of appointment of Resolution Professional (RP) and preparation of information memorandum.5. Extension of CIRP period, re-publication of notice for submission of resolution plan, and receipt of resolution plan from proposed applicants.6. Approval of resolution plan by CoC and submission for approval to the Adjudicating Authority.7. Legal analysis of the resolution plan in conformity with section 30(2) of I&B Code.8. Rejection of objection by operational creditor regarding the plan's non-compliance with operational debt payment provision.9. Examination of the plan's mechanism for effective implementation and management of corporate debtor's affairs.10. Compliance with IBBI regulations, submission of required certificates, and approval of resolution plan by the Adjudicating Authority.Issue 1: Application under section 9 of IBC for CIRPThe application was filed by an Operational Creditor against the Corporate Debtor for default in payment of operational debt, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was admitted into CIRP, an Interim Resolution Professional was appointed, and a moratorium was issued under section 14 of the I&B Code.Issue 2: Formation of Committee of Creditors and Confirmation of Resolution ProfessionalThe Interim Resolution Professional took possession of the corporate debtor's assets and management. The Committee of Creditors (CoC) was formed, consisting of financial creditors with allotted voting percentages. The first CoC meeting confirmed the appointment of the Resolution Professional and instructed to proceed with the CIRP, leading to the preparation of an information memorandum based on asset valuation reports.Issue 3: Extension of CIRP Period and Submission of Resolution PlanThe CIRP period was extended upon CoC's request, and the deadline for submission of resolution plans was extended. Despite receiving multiple expressions of interest, only one resolution plan was submitted jointly by two entities. The plan was approved by CoC and submitted for the Adjudicating Authority's approval under section 31(a) of the I&B Code.Issue 4: Legal Analysis of Resolution PlanThe Adjudicating Authority analyzed the resolution plan's compliance with section 30(2) of the I&B Code, focusing on provisions related to resolution process cost payment priority and operational debt payment. The plan's provisions were examined, including the mechanism for effective implementation and management of the corporate debtor's affairs.Issue 5: Rejection of Operational Creditor's ObjectionAn operational creditor objected to the plan, citing the lack of provision for operational debt payment. The Adjudicating Authority rejected the objection, emphasizing that the plan did not discriminate among operational creditors and was approved by CoC unanimously.Issue 6: Compliance with IBBI Regulations and Approval of Resolution PlanThe resolution plan was found to comply with all legal requirements, including provisions of section 30(2) of the I&B Code and IBBI regulations. The Adjudicating Authority approved the plan, making it binding on all stakeholders involved and reviving the company with immediate effect.This detailed analysis covers the key issues addressed in the judgment, providing a comprehensive overview of the legal proceedings and decision-making process involved in the Corporate Insolvency Resolution Process.
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