Tribunal Approves RCC e-Construction's Resolution Plan under I&B Code, Addresses Creditors' Objections

The Tribunal approved the Resolution Plan submitted by M/S. RCC e-Construction Pvt. Ltd. under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. The objections raised by Operational Creditors, Dissenting Financial Creditors, and other parties were overruled, and the Resolution Plan was deemed compliant with the I&B Code. Home Buyers' objections were partially addressed with an increased payout percentage. The Income Tax Department's objections were directed to be resolved through appropriate channels. The Resolution Plan was finalized, a Monitoring Committee was established, and further applications under specific sections of the IBC, 2016, will be addressed separately.

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Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016.
2. Objections raised by Operational Creditors.
3. Objections raised by Dissenting Financial Creditors.
4. Objections against rejection of claims by the Resolution Professional.
5. Objections raised by Home Buyers.
6. Objections filed by the Income Tax Department.

Detailed Analysis:

1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016:
- The Resolution Professional sought approval for the Resolution Plan submitted by M/S. RCC e-Construction Pvt. Ltd.
- The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 13.07.2018.
- The Committee of Creditors (COC) was constituted on 18.08.2018.
- The Resolution Plan was filed with the Adjudicating Authority on 03.06.2019.
- The Resolution Plan complies with all provisions of the I&B Code, 2016, and the CIRP Regulations.
- The COC approved the Resolution Plan with 81.39% voting share.

2. Objections raised by Operational Creditors:
- Several Operational Creditors filed applications objecting to the Resolution Plan, primarily due to the proposed payment of only 1.5% of their admitted claims.
- The Tribunal noted that the liquidation value due to Operational Creditors is NIL, and the allocation of 1.5% is in accordance with Section 30(2) of the Code.
- The Supreme Court's decision in Essar Steel India Limited was cited, emphasizing that Financial and Operational Creditors cannot be treated equally.
- The objections were overruled, and the applications were dismissed.

3. Objections raised by Dissenting Financial Creditors:
- The sole Dissenting Financial Creditor, Sanchit Sales Private Limited, filed an application objecting to the 100% haircut proposed in the Resolution Plan.
- The Tribunal noted that the classification of Financial Creditors based on their Security Interest is rational and practical.
- The objection was overruled, and the application was dismissed.

4. Objections against rejection of claims by the Resolution Professional:
- Several applicants filed applications against the rejection of their claims by the Resolution Professional.
- The Tribunal considered each case and found that the Resolution Professional's decisions were fair and reasonable.
- The applications were dismissed, but the applicants were given the liberty to approach the Resolution Applicant under specific clauses of the Resolution Plan.

5. Objections raised by Home Buyers:
- Home Buyers objected to the classification of their claims as "Duplicate Claims" and the proposed payment of 20% of their admitted claims.
- The Tribunal found the Resolution Professional's rationale reasonable and just.
- The Resolution Applicant agreed to increase the payout to 30% for these Home Buyers.
- The objections were overruled, and the applications were dismissed with the condition of a 30% payout.

6. Objections filed by the Income Tax Department:
- The Income Tax Department objected to the waiver of tax dues and the carry forward of tax losses.
- The Tribunal directed the Resolution Applicant to seek necessary relief from the appropriate authorities in accordance with the law.
- The Tribunal emphasized that it does not have jurisdiction over public law matters.

Conclusion:
- The Resolution Plan was approved by the Tribunal, binding on the Corporate Debtor and other stakeholders.
- The Tribunal directed the formation of a Monitoring Committee for the implementation of the Resolution Plan.
- The Resolution Professional was instructed to hand over all records and project sites to the Resolution Applicant.
- Applications under Sections 43, 45, 50, and 66 of the IBC, 2016, will be taken up separately.

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