Resolution Professional to Convene CoC Meeting for Revote on CIRP Plan Under Regulation 39; 99.84% Approval Achieved.

The Tribunal directed the Resolution Professional to convene a Committee of Creditors (CoC) meeting for revoting on a Corporate Insolvency Resolution Process (CIRP) plan, as per Regulation 39 of CIRP Regulation, 2016. The revoting resulted in a 99.84% approval of the Resolution Plan. Consequently, the Tribunal permitted the Resolution Professional to apply for plan approval before the Adjudicating Authority within three weeks. The appeal was disposed of, with no further decisions needed following these developments.

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Issues involved:
The rejection of the application seeking a direction to convene a meeting of the Committee of Creditors (CoC) to comply with CIRP regulations.

Summary:

Issue 1: Rejection of the application for convening CoC meeting:
The appeal was filed against the order rejecting an application to convene a meeting of the CoC to comply with CIRP regulations. The appellant argued that the plan submitted during the Corporate Insolvency Resolution Process (CIRP) did not receive the necessary votes for approval, triggering the need for revoting as per Regulation 39 of CIRP Regulation, 2016. The Resolution Professional contended that since the CIRP was closing, a meeting for revoting could not be convened. The Tribunal, citing Regulation 39, Sub-Regulation (3), 2nd Proviso, directed the Resolution Professional to convene a meeting of the CoC to revote on the plan with the highest votes. The Resolution Professional conducted the revoting, resulting in the approval of the Resolution Plan by 99.84% voting share in favor.

Issue 2: Approval of the Resolution Plan:
Following the successful revoting and approval of the Resolution Plan by the CoC, the Resolution Professional sought permission to file an application for approval of the plan before the Adjudicating Authority. The Tribunal, considering the circumstances and the majority approval received by the Resolution Plan, granted permission for the Resolution Professional to proceed with filing the application for approval within three weeks. Subsequently, the appeal was disposed of as there was no further decision required in light of the events that transpired.

This summary outlines the legal judgment involving the rejection of the application for convening a CoC meeting, the subsequent revoting process, and the approval of the Resolution Plan, leading to the disposal of the appeal.

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