Adjudicating Authority Upholds Resolution Plan Approval

The Adjudicating Authority's approval of the Resolution Plan in Company Appeal (AT) (Insolvency) No. 572 of 2021 was upheld, with the Tribunal finding no grounds for interference. The Appellant's failure to submit its claim as required within the specified timeframe resulted in its claim being categorized under 'L'. The Resolution Plan, approved with 100% voting share by the Committee of Creditors, was deemed binding on all stakeholders and compliant with relevant regulations. Consequently, the appeal was dismissed, no costs were awarded, and any pending applications were closed.

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Issues Involved:
1. Approval of the Resolution Plan by the Adjudicating Authority.
2. Consideration of the Appellant's claim by the Resolution Professional (RP).
3. Compliance with the procedures for submitting claims during the Corporate Insolvency Resolution Process (CIRP).
4. Binding nature of the approved Resolution Plan on creditors and stakeholders.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan by the Adjudicating Authority:
The Present Appeal was filed against the Order dated 16th April 2021, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-I, Mumbai) in I.A. No. 07/MB/2021 in Company Petition (IB) No.3448/MB/2018, whereby the Adjudicating Authority approved the Resolution Plan submitted by the Successful Resolution Applicant (SRA).

2. Consideration of the Appellant's Claim by the Resolution Professional (RP):
The Appellant contended that its claim was not considered by the RP and was included in Category 'L', agreeing to pay only 2% (Rs. 46,595) of the admitted claim of Rs. 23,29,773. The Appellant had initiated arbitration proceedings against the Corporate Debtor for recovery of Rs. 1,33,62,369, which was at the stage of cross-examination of Respondent's witnesses. The RP included the Appellant in Category 'L' and agreed to pay only 2% of the admitted claim of Rs. 23,29,773, whereas other creditors in Category 'K' were fully paid. The Appellant's claim was pending for consideration, and despite reminders, the Appellant failed to submit its claim in Form-B with proof as required under Regulation 12(1) & (2) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

3. Compliance with the Procedures for Submitting Claims During the CIRP:
The Appellant was required to submit its claim in Form-B with relevant documents for acceptance. Despite multiple reminders from the RP, the Appellant did not comply with the procedure laid down in the Code. The RP requested the Appellant to submit the claim in Form-B on 22.05.2020 and sent a reminder on 25.05.2020. The Appellant did not submit its claim, resulting in the claim being categorized under 'L' (other creditors). The Adjudicating Authority dismissed the Appellant's application (M.A. No. 3228/2019) seeking inclusion as an Operational Creditor on 25.11.2019 and directed the Appellant to approach the RP.

4. Binding Nature of the Approved Resolution Plan on Creditors and Stakeholders:
The Adjudicating Authority approved the Resolution Plan after satisfying that it complied with Section 30(2) of the I&B Code, 2016, and was approved by the Committee of Creditors (CoC) with 100% voting share. Once approved, the Resolution Plan binds the Corporate Debtor, its employees, members, creditors, guarantors, and other stakeholders. The plan was in compliance with Regulation 38 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and Section 30(2)(f) of the Code. The RP ensured the Resolution Plan fell within the ambit of Section 30(2) of the Code, and the CoC's decision was final.

Conclusion:
The Tribunal concluded that the order passed by the Adjudicating Authority in approving the Resolution Plan on 16.04.2021 was in accordance with the law and required no interference. The Appellant's failure to submit its claim in the prescribed form and within the stipulated time led to its categorization under 'L'. The Company Appeal (AT) (Insolvency) No. 572 of 2021 was dismissed, with no order as to costs, and any pending applications were closed.

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