Atyant Capital's Plan Approved, Exim Bank Joins Creditors, Implementation Begins

The modified resolution plan submitted by "Atyant Capital India Fund-1" was approved by the Adjudicating Authority, meeting all statutory requirements under the Insolvency and Bankruptcy Code. The plan's approval led to the reconstitution of the Committee of Creditors to include Exim Bank, with the highest bidder being Atyant Capital. The resolution plan's compliance with the IBC and CIRP Regulations was confirmed, and the implementation process was set in motion, marking the end of the moratorium order. All relevant records were directed to be forwarded to the Insolvency and Bankruptcy Board of India, concluding the case.

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Issues Involved:
1. Approval of the resolution plan under sections 30(6) and 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC).
2. Rejection of Exim Bank's claim as a financial creditor.
3. Reconstitution of the Committee of Creditors (CoC) including Exim Bank.
4. Exclusion of time consumed in litigation from the CIR process.
5. Evaluation and negotiation of revised resolution plans.
6. Compliance of the resolution plan with IBC and CIRP Regulations.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan:
The application was filed under sections 30(6) and 31(1) of the IBC, seeking approval of the resolution plan submitted by "Atyant Capital India Fund-1." The resolution professional confirmed that the plan complied with section 30(2) of the IBC and regulation 38 of the CIRP Regulations. The plan was approved by the CoC with a 100% voting share. The resolution plan met all statutory requirements, including payment of insolvency resolution process costs, repayment of debts to operational creditors, management of the corporate debtor, and compliance with existing laws.

2. Rejection of Exim Bank's Claim:
During the CIR process, the resolution professional rejected Exim Bank's claim as a financial creditor. This decision was upheld by the Adjudicating Authority and subsequently challenged by Exim Bank before the National Company Law Appellate Tribunal (NCLAT). The NCLAT recognized Exim Bank as a financial creditor and directed the reconstitution of the CoC to include Exim Bank.

3. Reconstitution of the CoC:
Following the NCLAT's decision, the CoC was reconstituted to include Exim Bank. The CoC was directed to reconsider the resolution plans already submitted, without going for rebidding, as the plans had already been opened. The Adjudicating Authority noted the resignation of the erstwhile resolution professional and directed Exim Bank to call for a CoC meeting to appoint a new resolution professional.

4. Exclusion of Time Consumed in Litigation:
The CoC decided to authorize the resolution professional to file an application for the exclusion of the time period consumed in litigation. This was necessary due to the extensive litigations that marred the CIR process. An application was filed before the NCLAT seeking clarification on whether resolution applicants could submit revised plans to maximize the value of assets.

5. Evaluation and Negotiation of Revised Resolution Plans:
The resolution professional sought confirmation from both Atyant Capital and Hindustan Oil Exploration Co. Limited (HOEC) regarding their interest in participating in the resolution process. Both applicants submitted revised plans, which were evaluated by the CoC. Atyant Capital was declared the highest bidder (H1), while HOEC was the second highest bidder (H2). HOEC declined to outbid Atyant Capital, leading to further negotiations with Atyant Capital, resulting in an improved financial proposal.

6. Compliance with IBC and CIRP Regulations:
The resolution professional certified that the resolution plan met all requirements of the IBC and CIRP Regulations. The plan provided for the payment of IRP costs, repayment of operational creditors, management of the corporate debtor, and supervision of the plan implementation. The plan also identified specific sources of funds for these payments and included a scheme of amalgamation to enhance the viability of the corporate debtor.

Conclusion:
The modified resolution plan submitted by "Atyant Capital India Fund-1" was approved by the Adjudicating Authority. The plan was found to be in conformity with section 30(2) of the IBC. The approval of the resolution plan was binding on all stakeholders, and the moratorium order ceased to have effect. The resolution professional was directed to forward all records relating to the CIR process and the resolution plan to the Insolvency and Bankruptcy Board of India (IBBI). The application was disposed of accordingly.

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