Tribunal Approves Resolution Plan for M/s. Pawan Impex Private Limited

The Tribunal approved the Resolution Plan under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 for M/s. Pawan Impex Private Limited, as it met all requirements under Section 30(2) without contravening any laws. The Committee of Creditors' decision, based on commercial wisdom, was not subject to judicial review unless against the law or public interest. Some reliefs were granted, such as exemptions under Section 32A of IBC, 2016, while others were denied. The moratorium order ceased, and the Resolution Plan took immediate effect, with records to be forwarded to the Insolvency and Bankruptcy Board of India (IBBI).

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Issues Involved:
1. Approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with Section 30(2) of the Insolvency and Bankruptcy Code, 2016.
3. Commercial wisdom of the Committee of Creditors (CoC).
4. Reliefs and concessions sought in the Resolution Plan.

Detailed Analysis:

1. Approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016:
The application was filed by the Resolution Professional (RP) under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval of the Resolution Plan under Section 31 of the Code. The RP had submitted the Resolution Plan for M/s. Pawan Impex Private Limited, which was approved by the Committee of Creditors (CoC) with a 100% voting share. The Tribunal confirmed that the Resolution Plan meets all requirements specified in Section 30(2) of the Code and approved the plan under Section 31(1).

2. Compliance with Section 30(2) of the Insolvency and Bankruptcy Code, 2016:
The RP confirmed that the Resolution Plan complies with all clauses of Section 30(2) of the Code:
- Section 30(2)(a): The plan provides for the payment of Insolvency Resolution Process costs in priority over other debts.
- Section 30(2)(b): The plan ensures payment to operational creditors is not less than what they would receive in liquidation.
- Section 30(2)(c): The plan includes provisions for the management of the corporate debtor's affairs post-approval.
- Section 30(2)(d): The plan includes mechanisms for implementation and supervision.
- Section 30(2)(e) & (f): The plan does not contravene any law and conforms to other requirements specified by the Board.

3. Commercial wisdom of the Committee of Creditors (CoC):
The Tribunal emphasized that it is not expected to substitute its view with the commercial wisdom of the CoC. The CoC's decision is based on feasibility, viability, and compliance with the Code and Regulations. The CoC approved the plan with a 100% voting share, which is above the statutory requirement of 66%. The approved plan proposes to pay Rs. 14,917.33 Lakhs within 24 months, higher than the liquidation value of Rs. 1,438 Lakhs. The Tribunal reiterated that commercial decisions of the CoC are not open to judicial review unless they contravene the law or public interest.

4. Reliefs and concessions sought in the Resolution Plan:
The Tribunal partially granted the reliefs and concessions sought in the Resolution Plan. Exemptions related to registration charges, stamp duty, taxes, and fees were not granted. However, exemptions for offences committed prior to the commencement of CIRP under Section 32A of IBC, 2016 were granted. The Tribunal clarified that any exemptions sought in violation of existing laws are not granted, and the Resolution Applicant must comply with all applicable laws.

Conclusion:
The Tribunal approved the Resolution Plan submitted by the RP under Section 31(1) of the Insolvency and Bankruptcy Code, 2016, confirming that it meets all requirements of Section 30(2) and does not contravene any existing laws. The moratorium order ceased to have effect from the date of the order, and the Resolution Plan became effective immediately. The RP was directed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI).

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