TaxTMI 
TaxTMI 
2019 (9) TMI 841
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....ess' was initiated against 'M/s. Bafna Pharmaceuticals Limited'- ('Corporate Debtor'), a Micro, Small & Medium Enterprises ('MSME', for short). The 3rd Respondent- Mr. Mahaveer Chand Bafna, Promoter of the 'Corporate Debtor' filed improved 'Resolution Plan' which was approved by the 'Committee of Creditors' and placed before the Adjudicating Authority (National Company Law Tribunal). By impugned order dated 1st February, 2019, the Adjudicating Authority approved the improved plan of the promoter of the 'Corporate Debtor' which is under challenge in this appeal. 2. Learned counsel appearing on behalf of the Appellants submits that 'Saravana Global Holdings Ltd.' along with Mrs. P. Shobha (Appellants herein) were interested to submit their 'Resolution Plan' but no opportunity was given to them to file the same. 3. According to the Appellants, the impugned order has been passed approving the 'Resolution Plan' without complying the mandatory provisions of the 'I&B Code'. It was submitted that as per Section 25 (2) (h) of the 'I&B Code', it is the duty of the 'Resolution Professional' to invite prospective 'Resolution Applicants' who fulfil criteria laid down by him with the appro....
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....ow: ".....(1) CD (Resolution Applicant) to submit the full set of resolution plan again by 26th December, 2018 incorporating the further details required by the CoC members points. (2) The Resolution Plan to be presented to the CoC again by the RP if the plan is in order incorporating the changes proposed as per (1) above. (3) In case details are not adequate or resolution plan if presented is not approved, then the RP to seek for 'Expression of Interest." 9. It was submitted that all the requirements under the 'I&B Code' have been complied with by the 'Interim Resolution Professional' and 'Resolution Professional', more specifically the 'Information Memorandum' was prepared in compliance with section 25(2) (g) and the same were furnished to the members of 'Committee of Creditors' on obtaining the Non-Disclosure Agreement. 10. It is informed that the revised 'Resolution Plan' submitted by the 3rd Respondent was discussed and put to vote which was approved by 74.84 % votes in favour of the resolution plan. A monitoring committee was constituted in order to successful implementation of the 'Resolution Plan'. 11. It was also informed that 3rd Respon....
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....and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the priority of payment of Government dues and to establish an Insolvency and Bankruptcy Fund, and matters connected therewith or incidental thereto. An effective legal framework for timely resolution of Insolvency and Bankruptcy would support development of credit markets and encourage entrepreneurship. It would also improve ease of doing business, and facilitate more investments leading to higher economic growth and development. 17. In "Swiss Ribbons Pvt. Ltd. & Anr. vs. Union of India & Ors.─ 2019 SCC OnLine SC 73", the Hon'ble Supreme Court while deal with preamble observed: "20. As is discernible, the Preamble gives an insight into what is sought to be achieved by the Code. The Code is first and foremost, a Code for reorganization and insolvency resolution of corporate debtors. Unless such reorganization is effected in a time-bound man....
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....der the feasibility, viability and such other requirements as has been specified by the Board. If it proposes maximisation of the assets and is found to be feasible, viable and fulfil all other requirements as specified by the Board, the company being MSME, it is not necessary for the 'Committee of Creditors' to follow all the procedures under the 'Corporate Insolvency Resolution Process'. For example, if case is settled before the constitution of the 'Committee of Creditors' or in terms of Section 12A on the basis of offer given by Promoter, in such case, all other procedure for calling of application of 'Resolution Applicant' etc. are not followed. If the Promoter satisfy all the creditors and is in a position to keep the 'Corporate Debtor' as a going concern, it is always open to 'Committee of Creditors' to accept the terms of settlement and approve it by 90% of the voting shares. The same principle can be followed in the case of MSME. 21. The Parliament with specific intention amended the provisions of the 'I&B Code' by allowing the Promoters of 'MSME' to file 'Resolution Plan'. The intention of the legislature shows that the Promoters of 'MSME' should be encouraged to pay b....