Tribunal Approves Resolution Plan for Jagriti Plastics Limited, Dismisses Objections

Jagriti Plastics Ltd. and Ors. Versus Proactive Plast Pvt. Ltd. and Ors.

Jagriti Plastics Ltd. and Ors. Versus Proactive Plast Pvt. Ltd. and Ors. - TMI Issues Involved:
1. Re-verification of claims by the Resolution Professional (RP)
2. Resubmission of final amounts offered by resolution applicants
3. Decision-making by the Committee of Creditors (CoC) on revised Resolution Plans
4. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016

Issue-wise Detailed Analysis:

1. Re-verification of claims by the Resolution Professional (RP):
The applicant, Mr. Nitin Gupta, requested the RP to re-verify the claim of Jagriti Plastics Limited and revise the amounts accordingly. The applicant argued that the RP had wrongly admitted the claim of Jagriti Plastics Limited as an operational creditor, which constituted 50% of the total operational debt of the corporate debtor. The RP and CoC clarified that the claims were verified by the erstwhile Interim Resolution Professional and that equal opportunities were given to all resolution applicants to revise their plans. The tribunal found no evidence to support the applicant's claim that only Jagriti Plastics Limited was allowed to revise its offer.

2. Resubmission of final amounts offered by resolution applicants:
The applicant sought directions for the resubmission of final amounts offered by the resolution applicants to the operational creditors in a sealed form before the Adjudicating Authority. The tribunal noted that all resolution applicants were given opportunities to revise their respective resolution plans, and the revised offers were duly recorded in the minutes of the 12th and 13th CoC meetings. The tribunal found that the applicant's contention had no basis, as all resolution applicants had clarified their final offers through emails.

3. Decision-making by the Committee of Creditors (CoC) on revised Resolution Plans:
The applicant raised objections against the resolution plan of Jagriti Plastics Limited, arguing that it would cause grave prejudice to other creditors and stakeholders. The respondents, including the RP and CoC, clarified that the revised resolution plans were discussed in detail, and the final decision was made based on the evaluation matrix. The tribunal found that the resolution plans were evaluated fairly, and the objections raised by the applicant did not hold merit.

4. Approval of the Resolution Plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016:
The RP filed an application seeking approval of the Resolution Plan under Section 30(6) of the Code. The tribunal examined the Resolution Plan to ensure it met the requirements under Section 30(2) of the Code, which includes provisions for payment of insolvency resolution process costs, payment of debts to operational creditors, management of the corporate debtor's affairs, implementation and supervision of the plan, and compliance with applicable laws. The tribunal found that the Resolution Plan fulfilled all the necessary requirements and was approved by the CoC with 100% voting shares. The tribunal approved the Resolution Plan and declared that the moratorium order under Section 14 of the Code would cease to have effect from the date of the order.

Conclusion:
The tribunal rejected the applicant's I.A. 265/ND/2021, finding no merit in the objections raised. The tribunal approved the Resolution Plan submitted by Jagriti Plastics Limited, which was earlier approved by the CoC with a 100% favorable vote. The tribunal emphasized the importance of adhering to all applicable laws and directed the RP to forward all records relating to the CIR Process and the Resolution Plan to the IBBI. The approved Resolution Plan became effective from the date of the order.