TaxTMI 
TaxTMI 
2019 (7) TMI 734
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....esh Kr. Gautam and Ms. Khushboo Aggarwal, Advocates JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. Pursuant to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) filed by the 'Punjab National Bank'- ('Financial Creditor'), the 'Corporate Insolvency Resolution Process' was initiated against 'M/s. Rishi Ganga Power Corporation Ltd.'- ('Corporate Debtor'). 2. In the said 'Resolution Process', the 'Committee of Creditors' after considering the cases of different 'Resolution Applicants', approved the 'Resolution Plan' of 'M/s. Kundan Care Products Ltd.'. The said plan having approved by the Adjudicating Authority by order dated 13th November, 2018, the Appellant- 'Operational Creditor' has cha....
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....ppearing on behalf of the 'Resolution Applicant'- ('M/s. Kundan Care Products Ltd.') submitted that the Appellant has agreed to revise the plan to make it non-discriminatory and in consonance of provisions of Section 30(2) (b) of the 'I&B Code'. It is accepted that no amount has been allocated to the 'Operational Creditor'. 7. Learned counsel appearing on behalf of the 'Punjab National Bank'- (4th Respondent) submitted that pursuant to the observations of this Appellate Tribunal, a meeting of erstwhile 'Financial Creditors' was held along with erstwhile 'Resolution Professional' and the 'Successful Resolution Applicant' on 2nd April, 2019 to arrive at a consensus for payment to Appellant- 'M/s. Mecamidi HPP India Ltd.' so that a Chart sh....
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....do not prescribe differential treatment between the similarly situated 'Operational Creditors' or the 'Financial Creditors' on one or other grounds. 10. In "Swiss Ribbon Pvt. Ltd. & Anr. v. Union of India & Ors.─ 2019 SCC OnLine SC 73)", the Hon'ble Supreme Court while looking into the discrimination as had been made out by the 'Financial Creditor' observed and held: "70. Quite apart from this, the United Nations Commission on International Trade Law, in its Legislative Guide on Insolvency Law ["UNCITRAL Guidelines"] recognizes the importance of ensuring equitable treatment to similarly placed creditors and states as follows: "Ensuring equitable treatment of similarly situated creditors 7. The objective o....
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....sactions detrimental to equitable treatment of creditors can be avoided." 71. The NCLAT has, while looking into viability and feasibility of resolution plans that are approved by the committee of creditors, always gone into whether operational creditors are given roughly the same treatment as financial creditors, and if they are not, such plans are either rejected or modified so that the operational creditors' rights are safeguarded. It may be seen that a resolution plan cannot pass muster under Section 30(2)(b) read with Section 31 unless a minimum payment is made to operational creditors, being not less than liquidation value. Further, on 05.10.2018, Regulation 38 has been amended. Prior to the amendment, Regulation 38 read a....
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....n value of the Company at Rs. 15.39 Crores, as per which the Appellant- 'Operational Creditor' is entitled to minimum Rs. 0.44 Crores. The proposed redistribution of amount amongst Creditors is as follows: As per Original plan As per Revised Plan As per Liquidation Name of Creditor Claim Amount Amount Provided Ratio Amount Provided Ratio PNB 98.76 27.48 27.83% 26.70 27.04% 9.25 OBC 59.51 16.56 27.83% 16.08 27.02% 5.57 Kotak 1.37 0.38 27.83% 0.37 27.01% 0.12 Operational Creditor (Mecamidi) 4.71 1.27 26.96% 0.44 164.35 44.42 44.42 15.39....