2018 (9) TMI 1771

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....of India', one of the 'Financial Creditor' against order dated 19th July, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad on the ground that the Resolution Plan approved by the Adjudicating Authority is against the provisions of Regulation 38(1)(c) of 'The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (for short 'IBBI (IRPCP), Regulation')as the dissenting financial creditors have been provided with equal amount with those 'Financial Creditors' who has agreed with the Resolution Plan. 2. Learned counsel appearing on behalf of the Successful Resolution Applicant submits that the Successful Resolution Applicant has treat....

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....rces of funds that will be used to pay the - (a) insolvency resolution process costs and provide that the insolvency resolution process costs will be paid in priority to any other creditor;" (b) liquidation value due to operational creditors and provide for such payment in priority to any financial creditor which shall in any event be made before the expiry of thirty days after the approval of a resolution plan by the Adjudicating Authority; and (c) liquidation value due to dissenting financial creditors and provide that such payment is made before any recoveries are made by the financial creditors who voted in favour of the resolution plan. 6. The sub-clause (b) of Regulation 38(1) mandates making provision to....

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.... of regulation 38(1)). Such regulation being against Section 240(1) cannot be taken into consideration and any Resolution Plan which provides liquidation value to the 'Operational Creditor(s)' or liquidation value to the dissenting 'Financial Creditor(s)' in view of clause (b) and (c) of Regulation 38(1), without any other reason to discriminate between two set of creditors similarly situated such as 'Financial Creditors' or the 'Operational Creditors' cannot be approved being illegal. 10. In the present case, as the Successful Resolution Applicant has treated all the 'Financial Creditors' equally at the same level and made no discrimination, it cannot be interfered on the ground that it is in violation of Regulation 38(1)(c). 11. Adm....