AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 675
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....Debtor, the petition was admitted on 04.06.2018 and that one Mr. Madhusudan Sharma having IBBI registration No. IBBI/ IPA-003/IPL0004612017-18/10395 was appointed as the Interim Resolution Professional (IRP) in relation to the CIRP Process initiated. 2. The Corporate Debtor, it is stated was being managed by one Mr. Rahul Aneja, Mrs. Ruchika Aneja being the directors of the Corporate Debtor and Mr. Pawan Aneja, Manager all occupying their offices at the time of insolvency commencement date. Consequent to the publication calling for the claims as provided under IBC, 2016 and the Attendant Regulations in the Economic Times (English) and Seema Sandesh (Hindi) on 06.06.2018 and after uploading the public announcement in the website as maintained by IBBI, the IRP received six claims from Financial Creditors and three claims from Operational Creditors till 18.06.2018 being the last date specified for the submission of the claims. Save, Oriental Bank of Commerce (OBC) all the other Financial Creditors were related parties and shareholders. Thus, the IRP constituted a Committee of Creditors (CoC) with OBC as the sole member having 100% voting share. 3. In the first meeting of the CoC co....
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....brings to light that in application IA No. 58/JPR/2018 dated 15.10.2018 has been filed before this Tribunal for appropriate relief in relation to preferential and other transactions in terms of Sections 43, 45, 50 and 66 of the Code as against the respondents named therein. 9. It is reported that on 30.10.2018, the fifth CoC meeting was convened as per the extended date of 29.10.2018 since only one resolution plan was received, the RP was directed to check for compliance with the requirements of IBC, 2016 and Regulations Attendant therein in relation to the resolution plan. RP after ascertaining the compliance with the Code and Regulations by the Resolution Applicant and with an opportunity being provided to the Resolution Applicant to cure the deficiencies for which time was given till 12.11.2018 and based on the submissions of the revised plan, the 6th meeting of the CoC was convened on 17.11.2018 and the revised resolution plan was submitted by the resolution applicant, which was placed before the CoC for discussion. The options available to the CoC in relation to the resolution plan to the CoC and rejection of resolution plan, it is stated was also brought to notice by the Res....
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....khs on the CD after reassessment for the Assessment Year 2011-12. Appeal against the said demand it is stated that has been filed on 23.01.2019. 13. As per the Resolution Plan it is stated that no interest shall be paid to existing unsecured loan for next five years the Plan implementation period (page 18 of the Plan). Undertakings to that effect by the related parties Mrs. Promila Rani Aneja, Proprietor of Prime Trade link, Mr. Pawan Kumar Aneja, Partner of Prime Multitrade Co., and Mr. Rahul Aneja, Karta of Rahul Aneja (HUF) for unconditional consent not to claim interest on their dues from the CD for the Resolution Plan implementation period have been duly annexed. 14. Further the amount provided to the different types of creditors as well as other stake holders under the resolution plan has been given in Paragraph 19 which for ready reference as reproduced hereunder: - The amount provided for the stakeholders under the Resolution Plan is as under: (Amount in Rs. Lakh) Sr. No. Category of Stakeholder* Amount Claimed Amount Admitted Amount Provided under the Plan# Amount Provided to the Amount Claimed(%) 1. Secured Financial 423 361 361 100% a Creditor....
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.... the adjudicating authority to declare the resolution plan upon its approval to be binding on the company, its creditors, guarantors, members, employees and stakeholders involved in the resolution plan in accordance with Section 31(1) of IBC, 2016 as well as based on consequential orders. 18. IA No. 57/JPR/2019 has been filed by the Financial Creditor who in the first place initiated the proceedings before this Tribunal seeking for CIRP of the Corporate Debtor and taking into consideration this Tribunal admitted the petition and initiated the CIRP. The grievance expressed by the applicant in IA No. 57/JPR/2019 is that his claim is not admitted in full by the RP including the principal and interest as claimed in a sum of Rs. 1,31,61,143/- and that as against the said claim the resolution plan discloses only a sum of Rs. 52.72 lakhs and that the same is scheduled to be paid under the resolution plan in instalments for the next five years till 31.03.2024. Further, in addition to the above application another application has also been filed by the applicant in IA No. 58 of 2019 wherein under the same set of facts an objection to the final Resolution plan is being raised as filed by th....
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....o. 44/JPR/2019. The facts in relation to the CIRP process hitherto which has taken place as can be culled out from the application as filed by the RP has been fully detailed in the preceding paragraphs and for sake of brevity the same are not repeated. 24. Compliance certificate in Form H has been duly annexed as Annexure 19 along with the typed set filed by the RP. Perusal of the said form discloses that Oriental Bank of Commerce is the only Financial Creditor not related and having a 100 per cent voting strength. The dissenting FC who has filed Application Nos. 57 and 58 of 2019 are related party Financial Creditors and in the circumstances, they do not have any say in the decision of the CoC. From clause VI of Form H it is seen that the resolution plan in the opinion of the Resolution Professional factors the interest of all the stakeholders and in addition it is stated that the resolution applicant in the resolution plan has factored the payment of statutory dues as well and that from the date of approval of the resolution plan, the resolution plan contemplates the full payment to be made in relation to the claims as reflected in the resolution plan. The adherence to the vario....
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....opose to make full payment to all the operational creditor of the Corporate Debtor as per the books of account of the Corporate Debtor. The amount is estimated to be Rs. 176 lakhs. This amount includes the claim of creditors who have not submitted their claims. However in case of liquidation the payment to operational creditors will be delayed and they might have to sacrifice some amounts as the liquidation value will not be such to allow the 100% payment to operational Creditors. In compliance to the regulation 38(f) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulation, 2016 Resolution applicant shall make to the Operational Creditor under a resolution plan in priority over financial creditors. Amount due to related parties shall be paid only after payment of all other creditors. Operational creditors shall be paid out of the funds invested by the Resolution Applicant and from the amount recovered from sale of stock and receipt from debtors. Full payment to unsecured Financial Creditors: Resolution applicant propose to make full payment of Rs. 55.72 lakhs (amount admitted by Resolution Professional) to Mr. Sushant Aneja ....
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.... No. Particulars (Liabilities Deferred) Amount (in lakhs) 1. Unsecured financial creditors and shareholders - Resolution applicants 121 2. Unsecured financial creditors- CIRP applicants. 56 Total (B) 177 Sl. No. Particulars (Liabilities payable in first three months) Amount (in lakhs) 1. Funds owned and deferred by resolution applicants till completion of plan 121 2. Cash flow as per projection of next five years 56 Net funds required for deferred payment 177 Payment of Statutory Liabilities All statutory liabilities outstanding during CIRP period shall be paid in time after approval of the Resolution plan. Payment of interest to Secured Creditor for CIRP Period Amount of interest due to secured creditor for the CIRP period shall be paid to secured creditor. Interest on Unsecured Loan of Related Parties Resolution applicants undertake not to make payment of interest on the amount unsecured loans of related parties till the completion of plan. Management of affairs of Corporate Debtor after approval of Resolution plan On approval of the resolution plan, the existing Board of Directors of Corporate Debtor ....
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....s through emails to the dissenting financial creditor/related parties/applicant in IA Nos. 57 and 58 of 2019, no supporting documents have been filed in relation to the claim of interest and in the circumstances the same was not taken into consideration in the final Resolution plan based on the claim admitted by the RP seems to be justified. Evidences have also been furnished along with the reply to the said effect and in the circumstances, we do not want to interfere in the final Resolution Plan as submitted by the resolution applicant reflecting the loan amount admitted by the learned RP. 29. In relation to IA No. 58/JPR/2018 filed by the RP bringing to the notice of this Tribunal about the transactions as contemplated under the provisions of Sections 43, 45, 50 and 66 for orders under the corresponding sections, it is required to notice that even though the said application was filed on 15.10.18 no serious effort was taken by RP to press this application for disposal. In relation to the same it is required to note that the RP had not been too vigilant in pressing for an order to be passed as it is required to notice that under Section 29A(g) a person will not be eligible to be ....