TaxTMI 
TaxTMI 
2018 (6) TMI 905
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....ed by the 1st Respondent alleging violation of the interim order passed by this Appellate Tribunal on 4th May, 2018 which reads as follows: "During the pendency of the Appeal, it will be open to the 'Committee of Creditors' and the Adjudicating Authority to approve one or other 'Resolution Plan', including the Plans if received subsequently which will be subject to the decision of this Appeal." 2. Learned senior counsel for 1st Respondent submits that the resolution plan or the eligibility of Resolution Applicant are to be considered by the 'Committee of Creditors' and the 'Adjudicating Authority' but the Resolution Professional has given notice to the parties that he will decide about the eligibility of one or other Resolution Applicant. 3. According to learned senior counsel for the Appellant, the Resolution Professional is required to decide whether resolution plan(s) are in accordance with existing provisions of law and fulfil other conditions as prescribed under Section 30(2) of the I&B Code, 2016 and therefore, it is within the domain of the Resolution Professional to decide such issue. 4. Learned senior counsel appearing on behalf of 'Committee of Creditors....
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....im to confirm that the resolution plan provides for payment of Insolvency Resolution Process costs, payment of debts of Operational Creditor(s), management of the affairs of the corporate debtor, implementation and supervision of the resolution plan, other requirements as may be specified by the Board and does not contravene any of the provisions of law for the time being in force. The relevant provisions of Section 30 are quoted below for proper appreciation: "30. Submission of resolution plan. - (1) A resolution applicant may submit a resolution plan to the resolution professional prepared on the basis of the information memorandum. (2) The resolution professional shall examine each resolution plan received by him to confirm that each resolution plan - (a) provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the repayment of other debts of the corporate debtor; (b) provides for the repayment of the debts of operational creditors in such manner as may be specified by the Board which shall not be less than the amount to be paid to the operational creditors in the event of a liquidation ....
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.... asset in accordance with the guidelines of the Reserve Bank of India issued under the Banking Regulation Act, 1949 and at least a period of one year has lapsed from the date of such classification till the date of commencement of the corporate insolvency resolution process of the corporate debtor: Provided that the person shall be eligible to submit a resolution plan if such person makes payment of all overdue amounts with interest thereon and charges relating to non-performing asset accounts before submission of resolution plan; (d) has been convicted for any offence punishable with imprisonment for two years or more; (e) is disqualified to act as a director under the Companies Act, 2013; (f) is prohibited by the Securities and Exchange Board of India from trading in securities or accessing the securities markets; (g) as been a promoter or in the management or control of a corporate debtor in which a preferential transaction, undervalued transaction, extortionate credit transaction or fraudulent transaction has taken place and in respect of which an order has been made by the Adjudicating Authority under this Code (h) has exec....
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....n be taken or objection can be called for from other Resolution Applicants with regard to one or other resolution plan. 10. The meeting of the Committee of Creditors is prescribed under Section 24 reads as follows: "24. Meeting of committee of creditors. - (1) The members of the committee of creditors may meet in person or by such electronic means as may be specified. (2) All meetings of the committee of creditors shall be conducted by the resolution professional. (3) The resolution professional shall give notice of each meeting of the committee of creditors to - (a) members of Committee of creditors; (b) members of the suspended Board of Directors or the partners of the corporate persons, as the case may be; (c) operational creditors or their representatives if the amount of their aggregate dues is not less than ten per cent of the debt. (4) The directors, partners and one representative of operational creditors, as referred to in sub-section (3), may attend the meetings of committee of creditors, but shall not have any right to vote in such meetings: Provided that the absence of any such director, partner ....
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....pplicant(s) when resolution plan of such applicant(s) are placed for consideration [Section 30(5)]. 14. The members of the 'Committee of Creditors' have voting right but others who attend the meeting as noticed above including the Board of Directors, Partners, Operational Creditor(s) and the Resolution Applicant(s) have no voting right. 15. From the aforesaid provisions the intention of the legislature is clear that the Committee of Creditors while approving or rejecting one or other resolution plan should follow such procedure which is transparent. Those who will watching the proceeding such as (suspended) Board of Directors or its Partners; Operational Creditors or its representatives and Resolution Applicant(s) are not mere spectator but may express their views to the Committee of Creditors for coming to conclusion in one or other way. 16. For the reason aforesaid we are of the view that the Committee of Creditors should record reasons (in short) while approving or rejecting one or other resolution plan. 17. Views, if any, are expressed by the (suspended) Board of Directors or it's Partners; Operational Creditors or its representatives and Resolution Applicant(s), ar....