2021 (8) TMI 158 - Tri - Insolvency and Bankruptcy

Resolution Plan Approved with 100% Creditor Vote: Compliance with Insolvency Code

Azad Impex Private Limited Versus Surya Manufacturing Private Limited

Azad Impex Private Limited Versus Surya Manufacturing Private Limited - TMI Issues:Approval of Resolution Plan under Section 30(6) and Section 31 of the Insolvency and Bankruptcy Code, 2016.Analysis:1. The Resolution Professional filed an application seeking approval of the Resolution Plan, which was approved in the seventh meeting of the committee of creditors (CoC). The Corporate Insolvency Resolution Process was initiated, and necessary announcements were made to call creditors to submit their claims.2. The Interim Resolution Professional was confirmed as the Resolution Professional, and the Corporate Insolvency Resolution Process was conducted as per regulations. An application seeking direction against the Enforcement Directorate was rejected by the Adjudicating Authority.3. The CoC decided to republish the invitation for submission of resolution plans and sought an extension of the Corporate Insolvency Resolution Process period, which was granted by the Adjudicating Authority. Expression of Interest was invited, and resolution plans were submitted by prospective resolution applicants.4. The CoC evaluated the resolution plans submitted by the prospective resolution applicants and decided to invite them for presentations. The plans were discussed, and revisions were requested from the applicants.5. The resolution plan submitted by one of the resolution applicants was approved by the CoC with 100% voting in its favor. Undertakings, affidavits, and compliance certificates were submitted as required by the regulations.6. The Resolution Applicant accepted the Letter of Intent and submitted the performance security. The Resolution Plan included the constitution of a Monitoring Committee for plan implementation.7. Parameters for approval of the resolution plan were outlined, including compliance with various sections and regulations of the Insolvency and Bankruptcy Code, 2016.8. The Resolution Plan was approved by the CoC, declared binding on relevant parties, and the moratorium order was lifted. The Resolution Professional was directed to forward all records to the Insolvency and Bankruptcy Board of India.This detailed analysis covers the approval process of the Resolution Plan under the Insolvency and Bankruptcy Code, 2016, highlighting the key steps and decisions taken by the relevant authorities and the committee of creditors.