Tribunal Approves Wow Solutions' Resolution Plan under Insolvency Code

The Tribunal approved the Resolution Plan submitted by Wow Solutions & Systems Private Limited under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. The plan was compliant with legal provisions and regulations, approved by the Committee of Creditors with 100% voting share. The plan included payment schedules, management changes, and statutory compliance requirements. The Resolution Professional was tasked with overseeing plan implementation and reporting to the Tribunal. The approval did not waive any statutory obligations of the corporate debtor, with instructions for post-approval compliance and documentation.

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Issues Involved:
1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with the Insolvency and Bankruptcy Code and Regulations.
3. Evaluation and approval process by the Committee of Creditors (CoC).
4. Implementation and supervision of the Resolution Plan.
5. Legal obligations and statutory compliance post-approval.

Detailed Analysis:

1. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016:
The Resolution Professional (RP) of Wow Solutions & Systems Private Limited sought approval for the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The application was filed after the CoC approved the plan with 100% voting share.

2. Compliance with the Insolvency and Bankruptcy Code and Regulations:
The RP confirmed compliance with Section 30(2) of the Code, which mandates:
- Payment of insolvency resolution process costs in priority.
- Payment of debts to operational creditors as specified.
- Management of the corporate debtor's affairs post-approval.
- Implementation and supervision of the resolution plan.
- Adherence to all legal provisions and requirements specified by the Board.

The RP also filed a Compliance Certificate in Form-H, showing compliance with the Code and Regulations.

3. Evaluation and approval process by the Committee of Creditors (CoC):
The CoC held multiple meetings to discuss and approve various aspects of the CIRP, including:
- Evaluation Matrix and appointment of forensic auditor.
- Publication of Form G and invitation of Expression of Interest (EOI).
- Approval of the Resolution Plan submitted by D-Vois SSV Broadband Pvt. Ltd.
The CoC approved the Resolution Plan with 100% voting share, and the plan included detailed payment schedules for financial and operational creditors, management changes, and compliance with statutory dues.

4. Implementation and supervision of the Resolution Plan:
The Resolution Plan outlined the infusion of funds, payment schedules, and management changes. The RP was tasked with supervising the implementation and filing status updates with the Tribunal. The plan included opening a separate escrow account for upfront consideration and transferring 100% equity shares to the resolution applicant.

5. Legal obligations and statutory compliance post-approval:
The Tribunal emphasized that the approval of the Resolution Plan does not waive any statutory obligations or liabilities of the corporate debtor. The MoA and AoA were to be amended and filed with the Registrar of Companies. The RP was required to forward all records related to the CIRP and Resolution Plan to the IBBI and send certified copies of the order to the CoC and the resolution applicant.

Conclusion:
The Tribunal approved the Resolution Plan, finding it compliant with Section 30(2) of the Code and relevant regulations. The plan's approval is binding on all stakeholders, including government authorities. The moratorium under Section 14 of the Code ceased to have effect from the date of the order, and the RP was instructed to supervise the plan's implementation and report to the Tribunal periodically.

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