2020 (12) TMI 1054 - Tri - Insolvency and Bankruptcy

Tribunal Approves Resolution Plan under IBC 2016 for Kankriya Enterprises Pvt. Ltd.

Vijay P. Lulla and Ors. Versus Suspended Board of Directors of Technovaa Plastic Industries Pvt. Ltd. and Ors.

The Tribunal approved the Resolution Plan under Section 31 of IBC, 2016, submitted by Kankriya Enterprises Pvt. Ltd., providing for a total consideration ... Seeking extension of time for implementation of plan which was granted by Committee of Creditors - it was submitted that approved Resolution Plan complied with all the requirements of Section 30(2) of IBC, 2016 and r.w. relevant Regulations made thereunder - HELD THAT:- It is noted that the Resolution Plan, submitted for approval, has been duly approved by the CoC in its meeting dated 19.09.2019 by 100% votes. The Resolution Professional has given requisite certificate that plan complies with all requirements Section 30(2) of IBC, 2016 r.w. relevant CIRP Regulations. The perusal of the Resolution Plan shows that the Financial Creditor will get a sum of ₹ 41,59,40,000/- against the their total claimed amount of ₹ 65,75,36,785/- which works out to 63.26%. Workmen dues have been provided in toto for the claims submitted by such workmen. The Operational Creditors would receive a sum of ₹ 16,02,791/- as against their total claimed of ₹ 8,74,42,091./- provisions for statutory liabilities has been made at ₹ 86,27,208/-. Thus, in sum and substance, the Resolution Plan provides for settlement of claim of various stakeholders. It is also noted that the Resolution Plan provides the background of successful Resolution Applicant and its associates. The revised 'Resolution Plan' filed with the Application meets the requirements of Section 30(2) of I&B Code, 2016 and Regulations 37, 38, 38(1A) and 39 (4) of IBBI (CIRP) Regulations, 2016. The 'Resolution Plan' is also not in contravention of any of the provisions of Section 29A. The Resolution Professional has also certified that the 'Resolution Plan' approved by the CoC does not contravene any of the provisions of the law for the time being in force. The Compliance Certificate is placed on record. The 'Resolution Plan' has been approved by the CoC with 100% voting share - the revised 'Resolution Plan' is hereby approved, which shall be binding on the Corporate Debtor and its employees, members, creditors, guarantors and other stakeholders involved in the Resolution Plan including Resolution Applicant. Resolution Plan stands modified to the extent of our direction given in this order and to be read along with such directions - Application disposed off. Issues Involved:1. Approval of the Resolution Plan under Section 31 of IBC, 2016.2. Extension of time for implementation of the Resolution Plan.3. Consideration of claims made by operational creditors and other stakeholders.4. Compliance with Section 30(2) of IBC, 2016 and relevant regulations.5. Reliefs and concessions sought by the Resolution Applicant.Issue-wise Detailed Analysis:1. Approval of the Resolution Plan under Section 31 of IBC, 2016:The Tribunal considered IA 617 of 2019 filed for the approval of the Resolution Plan under Section 31 of IBC, 2016. The Corporate Debtor was admitted into CIRP on 12.11.2018. The CoC approved the Resolution Plan submitted by Kankriya Enterprises Pvt. Ltd. with 100% voting in its meeting on 19.09.2019. The Resolution Plan provided for a total consideration of Rs. 42.90 Crores to the creditors, including CIRP costs. The Plan was found to comply with Section 30(2) of IBC, 2016 and relevant CIRP Regulations. The Tribunal approved the Resolution Plan, making it binding on all stakeholders.2. Extension of time for implementation of the Resolution Plan:IA 398 of 2020 was filed by the Successful Resolution Applicant for an extension of time for the implementation of the Resolution Plan, which was granted by the CoC for 180 days. The Tribunal directed the Successful Resolution Applicant to submit an amended Resolution Plan within two days, which was duly submitted.3. Consideration of claims made by operational creditors and other stakeholders:The Tribunal addressed several IAs (IA 88 of 2020, IA 89 of 2020, and IA 61 of 2020) regarding the denial of input credit by the GST Department and other claims. It directed the RP to consider these claims while distributing the amount to Operational Creditors in the same proportion as applicable to other Operational Creditors. IA 344 of 2020 regarding the claims of the State Tax Officer was to be considered separately on 29.09.2020.4. Compliance with Section 30(2) of IBC, 2016 and relevant regulations:The Resolution Plan met the requirements of Section 30(2) of IBC, 2016, and Regulations 37, 38, 38(1A), and 39(4) of IBBI (CIRP) Regulations, 2016. It was not in contravention of any provisions of Section 29A. The Resolution Professional certified that the Plan complied with all legal requirements. The Plan provided for settlements of various stakeholders' claims and included an implementation schedule.5. Reliefs and concessions sought by the Resolution Applicant:The Tribunal noted the reliefs and concessions sought by the Resolution Applicant in Annexure 5 of the Resolution Plan. It stated that the Resolution Applicant might approach the concerned statutory/competent authority for any concession, waiver, or exemption as per prevailing laws. The approval of the Resolution Plan did not mean an automatic waiver or abetment of legal proceedings.Other Observations and Directions:The Tribunal directed that the approved Resolution Plan would become effective from the date of the order. The moratorium dated 12.11.2018 would cease to have effect. The Resolution Professional was to send a copy of the order to all participants and the Resolution Applicant. The Plan would be subject to existing laws and necessary approvals to be obtained within one year.Conclusion:IA 617 of 2019 was allowed, and the Resolution Plan was approved with the observations and directions provided. IA 617 of 2019, along with IA 88 of 2020, IA 89 of 2020, and IA 61 of 2020, were disposed of accordingly. An urgent certified copy of the order was to be issued upon compliance with requisite formalities.