Tribunal Approves Insolvency Resolution Plan with Financial Provisions for Stakeholders

The Tribunal approved the resolution plan under section 30(6) of the Insolvency & Bankruptcy Code, 2016 (I&B Code) submitted by a consortium led by Mr. Brij Bhushan Gupta, with 85.29% of the Committee of Creditors (CoC) members voting in favor. The plan included financial provisions for various stakeholders, and the resolution applicant was directed to comply with all applicable laws and obtain necessary approvals within one year. The plan also outlined the establishment of a monitoring agency and changes in the Board of Directors. The Tribunal's decision was binding on all stakeholders, and the matter was disposed of accordingly.

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Issues Involved:
1. Approval of the resolution plan under section 30(6) of the Insolvency & Bankruptcy Code, 2016 (I&B Code).
2. Compliance with the provisions of the I&B Code and CIRP Regulations.
3. Voting by the Committee of Creditors (CoC) on the resolution plan.
4. Financial provisions and payments proposed in the resolution plan.
5. Legal compliance and reliefs sought by the resolution applicant.
6. Implementation and monitoring of the resolution plan.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan:
The application was filed under section 30(6) of the I&B Code by the Resolution Professional (RP) seeking approval of the resolution plan submitted by a consortium led by Mr. Brij Bhushan Gupta. The resolution plan was approved by 85.29% of the CoC members, with 0.21% abstaining and 14.50% voting against it.

2. Compliance with the Provisions of the I&B Code and CIRP Regulations:
The RP certified that the resolution plan complied with all provisions of the I&B Code and the CIRP Regulations. The resolution applicant also submitted an affidavit confirming eligibility under section 29A of the I&B Code. The RP appointed two registered valuers to determine the fair value and liquidation value of the Corporate Debtor, which were Rs. 54,15,70,844 and Rs. 28,76,87,233 respectively.

3. Voting by the Committee of Creditors (CoC):
The CoC voting resulted in 85.29% approval for the resolution plan. The voting shares of creditors like State Bank of India (28.66%), Bank of Baroda (26.46%), and Central Bank of India (24.58%) were in favor, while Indian Overseas Bank (14.50%) dissented, and ICICI Bank (0.21%) abstained.

4. Financial Provisions and Payments Proposed in the Resolution Plan:
The resolution plan proposed payments to various stakeholders, including:
- CIRP Costs: At Actuals.
- Financial Creditors: Rs. 30 Crores less the IRPC at actual.
- Operational Creditors: Rs. 1 Crore.
- Workmen & Employees: Rs. 3.15 Crores.
- Provident Fund for Workmen & Employees: Rs.0.7 Crores.
The plan also included a provision for capital expenditure of Rs. 10 Crores and working capital infusion of Rs. 12 Crores.

5. Legal Compliance and Reliefs Sought by the Resolution Applicant:
The resolution applicant sought several reliefs and concessions, which the Tribunal did not grant. The applicant was directed to comply with all applicable laws and obtain necessary approvals within one year from the date of the order.

6. Implementation and Monitoring of the Resolution Plan:
The plan proposed the establishment of a monitoring agency consisting of three CoC members and two nominees of the resolution applicant. The suspended Board of Directors would be dissolved, and new directors nominated by the resolution applicant and financial creditors would be appointed. The resolution applicant was expected to comply with all industrial, labor, and other applicable laws.

Conclusion:
The Tribunal approved the resolution plan with modifications, making it binding on all stakeholders. The resolution professional was directed to forward all records to the IBBI. The MA 3636/2019 was allowed and disposed of accordingly.

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