H-1 Bidder's Resolution Plan Approved with 100% Vote Share by Creditors Committee

The Resolution Plan of the H-1 bidder was approved with a 100% voting share by the Committee of Creditors (CoC) at the 7th meeting. The plan was found compliant with regulatory requirements and eligible under Section 29A of the Insolvency and Bankruptcy Code. The CoC's decision was based on the plan's feasibility, viability, and financial aspects, with the bid amount exceeding the liquidation value. The Tribunal approved the plan, directing its immediate implementation, cessation of the moratorium order, and communication of the decision to all parties involved.

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Issues involved: Approval of Resolution Plan under the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:

1. Background and Admission of Application: The case involves an application filed by the Resolution Professional for the final approval of the Resolution Plan by the Adjudicating Authority. The application was filed in the context of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor, Meghalaya Infratech Limited. The application was admitted earlier, and the Resolution Professional sought an urgent hearing due to the expiration of the CIRP period.

2. Appointment of Resolution Professional and Formation of CoC: The Interim Resolution Professional was appointed initially, and later, at the 1st CoC meeting, the Interim Resolution Professional was appointed as the Resolution Professional. The CoC was formed, and Expression of Interest was invited from prospective resolution applicants. Four resolution plans were received, and the CoC decided to follow the swiss challenge method for selecting the best plan.

3. Approval of Resolution Plan: At the 7th CoC meeting, the Resolution Plan of the H-1 bidder was approved with a 100% voting share by the CoC members. The Resolution Professional verified the plan's compliance with regulatory requirements and confirmed its eligibility under Section 29A of the Code.

4. Compliance with Regulatory Requirements: The Resolution Plan was assessed for compliance with Regulation 38 of the IBBI Regulations and Section 30 of the Code. The plan identified funding sources, outlined payment priorities, specified the term and implementation schedule, and provided for management and supervision during the term.

5. Approval Decision and Rationale: The CoC approved the Resolution Plan of the H-1 bidder after considering feasibility, viability, and financial aspects. The bid amount exceeded the liquidation value, and the CoC's decision was deemed wise. The Resolution Plan was found to meet all requirements without any violations.

6. Judicial Approval and Directions: The Tribunal approved the Resolution Plan of the H-1 bidder, binding it on all stakeholders involved. The revival plan was to come into immediate effect, the moratorium order ceased, and records were to be forwarded to the Insolvency and Bankruptcy Board of India. The pending applications were disposed of, and the order was to be communicated to all parties.

This detailed analysis outlines the key aspects of the judgment regarding the approval of the Resolution Plan under the Insolvency and Bankruptcy Code, 2016, emphasizing compliance with regulatory requirements, CoC decisions, and judicial approval of the plan.

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