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of <h1>Approval of Resolution Plan in Creditor Vote | Compliance with Insolvency Laws | Relief Granted</h1> <h3>Abhishek Nagori, RP of Raj Rayon Industries Limited Versus SVG Fashions Private Limited and Ors.</h3> Abhishek Nagori, RP of Raj Rayon Industries Limited Versus SVG Fashions Private Limited and Ors. - TMI Issues:Approval of Resolution Plan under Section 30(6) of IBC, 2016.Analysis:The application was filed by the Resolution Professional for the approval of the Resolution Plan of the Corporate Debtor under Section 30(6) of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had been admitted into Corporate Insolvency Resolution Process (CIRP) by the Adjudicating Authority. The Committee of Creditors (CoC) was constituted, and various meetings were held to discuss the Resolution Plan. The Resolution Plan submitted by the Resolution Applicant was found to be in compliance with the provisions of IBC, 2016, and relevant rules and regulations. The CoC approved the revised Resolution Plan submitted by the Resolution Applicant with 100% votes in the 10th meeting.The Applicant received valuation reports indicating the Fair Value and Liquidation Value of the Corporate Debtor. The suspended board of directors initially raised objections but later requested the Adjudicating Authority to adjudicate the approval of the Resolution Plan without objections. An affidavit clarifying the eligibility of the Resolution Applicant under Section 29A of IBC, 2016 was submitted. The Resolution Applicant provided performance security as required by the CIRP Regulations, 2016.The Resolution Plan was thoroughly examined by the Adjudicating Authority. It was noted that the Resolution Applicant was not a related party of the Corporate Debtor, and there were no preferential undervalue or extortionate transactions. The Resolution Plan complied with all the necessary provisions of IBC, 2016, and related regulations. The total outstanding debt claims were considered, and the Resolution Plan committed to payment to stakeholders. The Adjudicating Authority was satisfied that the Resolution Plan could be successfully implemented.The Adjudicating Authority approved the Resolution Plan as proposed by the Resolution Applicant and approved by the CoC. Various reliefs and concessions were granted as per the Resolution Plan. The order detailed the extinguishment of liabilities, encumbrances, and claims of stakeholders. It also addressed the management handover, approvals required, and other procedural formalities. The Resolution Plan was deemed effective from the date of the order, and the moratorium ceased to have effect. The Resolution Professional was directed to send copies of the order to participants, forward records to the Insolvency and Bankruptcy Board of India, and ensure compliance with all formalities. Any urgent certified copies were to be issued upon compliance with formalities.
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