TaxTMI 
TaxTMI 
2020 (7) TMI 122
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....Mohan Lal Jain was appointed as Interim Resolution Professional (IRP) vide order dated 27-6-2017. 3. It is submitted that the IRP constituted the CoC consisting of State Bank of India being the sole member of the CoC as per the provisions of Section 21 of the Code. 4. It is stated that in the first meeting of the CoC held on 26-7-2017, the IRP was sought to be replaced with Mr. Rajeev Goel who was appointed as RP vide order dated 1-9-2017. 5. The RP made a public announcement for invitation of Expression of Interest (EOI) by publishing the Form G in Economic Times (All India Edition) dated 6-10-2017. The last date for submission of EOI was fixed as 20-10-2017 which was further extended to 6-11-2017 by another advertisement on 23-10-2017. 6. The RP apprised the CoC that EOI was received from 5 prospective resolution applicants. The RP also issued a Process Document dated 12-12-2017 for evaluation of the resolution plans which was amended two times vide Addendums dated 2-1-2018 and 23-1-2018. 7. CA No. 219 of 2017 was filed by the RP under section 12(2) of the IBC, 2016 for extension of the CIRP time period by a further period of 90 days and the same was allowed vide o....
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....said order of Hon'ble NCLAT. It is stated that the applicant herein admitted the claims of the Corporate Guarantee holders (CGH) of the Corporate Debtor i.e. State Bank of India, Andhra Bank, Allahabad Bank, Canara Bank, Bank of Maharashtra, Phoenix ARC Private Limited (Assignor United Bank of India), Punjab & Sind Bank, Punjab National Bank, Bank of India, Bank of Baroda and Axis Bank Limited and reconstituted CoC with induction of the CGHs as the new members. 13. In the 9th meeting the CoC held on 16-8-2018, the earlier approved resolution plan dated 25-1-2018 of M/s. New Ram Traders (the successful resolution applicant) was placed before the reconstituted CoC and after deliberations on resolution plan, the successful resolution applicant was given time to submit the revised plan. It is stated that the revised resolution plan was submitted on 30-8-2018 and after discussion in the CoC, another revised plan was submitted on 24-9-2018. 14. It is also stated that the Resolution Plan dated 25-1-2018 along with addendum dated 9-11-2018 was placed before the CoC in its 14th meeting held on 17-11-2018 wherein SBI rejected the said resolution plan and the Resolution Professional....
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....plication before the AA. In case no such application is received within one month from today, the AA will consider appropriate suo moto action." 19. The Successful Resolution Applicant i.e. M/s. New Ram Traders was directed to submit its final revised resolution plan within 3 days from the date of order and the RP was directed to convene a meeting of the CoC for consideration of the final plan. Further, exclusion of time was also granted as discussed above. 20. By virtue of the aforesaid order, the Successful Resolution Applicant vide email dated 19-9-2019 submitted the final revised resolution plan dated 25-1-2018 along with amendment made on 18-9-2019 (Annexure RP-20). The CoC in its 16th meeting held on 23-9-2019 approved the revised resolution plan dated 25-1-2018 (along with amendment dated 18-9-2019) submitted by New Ram Traders by 100% voting share in favour of it. A copy of the Letter of Intent dated 23-9-2019 stated to be issued to the successful resolution applicant is attached as Annexure RP-22. 21. It has been prayed in the application that the Resolution Plan dated 25-1-2018 and amendment made on 18-9-2019 as submitted by M/s New Ram Traders be approved. 22....
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....-2019 and thereafter, the CIRP cost has increased substantially. The Resolution Applicant has undertaken to provide additional fund over and above Rs. 64,33,31,000/- to make payment of any increase in the CIRP cost from the amount mentioned in the approved plan till the date of approval of such plan by this Tribunal. It is stated that in the initial plan submitted by the Resolution Applicant, the total amount offered was Rs. 59,92,00,000/- and that the amount offered in the successful Resolution Plan is Rs. 64,33,31,000/- and therefore, after considering the increased CIRP cost from 1-4-2019 till the date of approval of the Resolution Plan by this Tribunal, the amount paid under the Resolution Plan shall exceed the liquidation value. 25. The RP has filed compliance certificate in Form H (Annexure -5, Diary No. 1287 dated 17-2-2020). It is certified by the RP in para 4 of Form H that the resolution plan complies with all the provisions of the Code, CIRP Regulations and does not contravene any of the provisions of law for the time being in force and that the resolution plan stands duly approved by the 100% of the voting share of the financial creditors. It is also stated in para 4....
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....Creditors -N.A.- -N.A.- -N.A.- -N.A.- 2 Other Secured Financial Creditor 16568.13 16480.56 5150 31.24 3 Dissenting Unsecured Financial Creditors -N.A.- -N.A.- -N.A.- -N.A.- 4 Other Unsecured Financial Creditors (Corporate Guarantee Holders- admitted by RP in compliance of NCLAT order dated 13-7-2018) 57465 57465 58 0.1 5 Claim of related party without any voting rights and not a part of CoC 2895.18 2895.18 Nil 0 6 Operational Creditors 4978.07 977.16 24.43 2.5 Government/Statutory Dues Will be paid in full, if any amount was due as on 27-6-2017 Employees, Wages & Salaries 29.46 20.88 20.88 100 Total 5253.31 #Amount provided over time under the Resolution Plan and includes estimated value of non-cash components. It is not NPV. 31. The compliance of the resolution plan has been given in para No. 9 of Form H (supra) as follows:- Section of the Code/Regulation No. Requirement with respect to Resolution Plan Clause of Resolution Plan Compliance (Yes/No) Page no. 25(2)(h) Whe....
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....value due to dissenting financial creditors? Regulation 38(1A) Whether the resolution plan includes a statement as to how it has dealt with the interests of all stakeholders? Clause IX Yes 176 & 199 -207 Regulation 38(2) Whether the Resolution Plan provides: (a) the term of the plan and its implementation schedule? Clause VIII Yes 197 - 198 (b) for the management and control of the business of the corporate debtor during its term? Clause VII 190 - 196 (c) adequate means for supervising its implementation? Clause VIII 197 -198 38(3) Whether the resolution plan demonstrates that - Clause Yes 192 (a) it addresses the cause of default? 7.7.1 (b) it is feasible and viable? Annexure I 217 (c) it has provisions for its effective implementation? Clause VIII 197 -198 (d) it has provisions for approvals required and the timeline for the same? No such approvals required clause II 164 (e) the resolution applicant has the capability to implement the resolution ....
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....he amount to be distributed between operational creditors in the event of liquidation, if distributed in order of priority in Section 53(1) of the Code would be NIL However, the RA proposes to offer 2.5% of the admitted amount (on pro rata basis) for payment against dues for operational creditors and the said payment will be made to the operational creditors in priority over the payment to secured and unsecured financial creditors. Hence, the amount offered to operational creditors is Rs. 24.43 lakhs. Further, there are no dissenting financial creditors as the resolution plan has been approved by 100% voting share of the Financial Creditors. 34. The approval of the resolution plan has been sought under section 31(1) of the Code, reading as follows: - If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan. P....
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....000/-. It is further stated that as the debts of financial creditors are higher than liquidation value as estimated by Resolution Applicant, there is no amount left as such for payment to operational creditors in the event of liquidation of the Corporate Debtor. The amount of dues of operational creditors as admitted by the RP is Rs. 977.16 lakhs. However, the RA proposes to offer 2.5% of the admitted amount (on pro rata basis) for payment against dues for operational creditors and the said payment will be made to the operational creditors in priority over the payment to secured and unsecured financial creditors. Hence, the amount offered to operational creditors is Rs. 24.43 lakhs. Further, it is stated in the resolution plan that the RA proposes to pay 0.1% of Rs. 574.65 crores (the total admitted claim of the Corporate Guarantee) i.e. Rs. 0.58 crore in full and final settlement within 30 days of the approval of the plan. The resolution plan provides payment of Rs. 20.88 lakhs towards 100% of dues of workmen. Section 30(2)(c) & (d):The resolution plan provides complete and detailed plan for management of the affairs of the corporate debtor (page 190 of the application). As ....
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....orate Debtor within 30 days of the approval of the resolution plan; infusion of funds to the tune of Rs. 233 lakhs by way of loans from friends/relatives/associates; and Rs. 4500 lakhs as term loan from Bank (Bharat Corporation Bank). Also, the resolution plan provides for Rs. 130 lakhs towards working capital requirement. 41. We have discussed above that the requirements under section 31(1) of the Code are satisfied in the present case. In para No. 4 of Form H (supra) the RP has certified that the resolution plan complies with all the provisions of the Code and Regulations and does not contravene any of the provisions of the law for the time being in force. The RP has also certified that the resolution applicant New Ram traders has submitted affidavit pursuant to Section 30(1) of the Code confirming its eligibility under section 29A of the Code to submit the resolution plan and the contents of the said affidavit are in order. The RP has submitted that the resolution plan has been approved by the CoC with 100% voting share in accordance with the provisions of the Code and CIRP Regulations made thereunder and after considering the feasibility and viability and other requirements ....