2019 (6) TMI 1552

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....6.2019 1. It is a common order passed on MA 512/2019 filed by the Resolution Professional (RP) for approval of the Resolution Plan and on MA 527/2019 moved by the unsuccessful Resolution Applicant seeking a direction against the RP to place its revised Resolution Plan dated 07.05.2019 before R2 (CoC) to go through the viability, feasibility and financial matrix of the resolution plan taking into consideration revised financial matrix and to decide the same in accordance with law. 2. As to the Resolution Plan approved by the CoC on 29.05.2019, the Resolution Professional says that in the evaluation matrix, the successful bidder namely M/s. Linux Laboratories Private Limited has attained 86 marks, whereas the Resolution Applicant (M/s. ....

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....s. 5.5 Crores on 27.03.2019, thereafter on 03.04.2019, it filed revised plan valuing Rs. 7.81 Crores and again on 29.04.2019 revised its plan for Rs. 9.95 Crores. 6. This unsuccessful Resolution Applicant did not stop there, by looking at the resolution plan given by the successful bidder proposing to pay money to stake holders within fifteen days, this unsuccessful Resolution Applicant has again come out with another plan on 07.05.2019 stating that it would pay to the stake holders within 90 days. 7. But the difference between the successful resolution plan and this plan not approved by the CoC is, this unsuccessful bidder has not placed any material along with plan reflecting source of funds. 8. As to successful Resolution Applic....

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....he CoC, it appears to us, is that the successful bidder has placed proof showing cash is available to pay it immediately -statutory liabilities within 96 hours; Operational Creditor dues within five days and dues to the Financial Creditors within 15 days. As against this, unsuccessful bidder says it would pay to the Operational Creditors within 150 days from the date of approval of this plan by NCLT and Government dues in part within five days and remaining balance within 45 days. 13. The Resolution Professional has mentioned that Regulation 38 of CIRP Regulations says that the Operational Creditor liquidation value has to be paid before paying the Financial Creditor dues, therefore, since this unsuccessful bidder mentioned that it would....

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....invest working capital into the company, whereby this Bench hereby partly allowed the MA filed by the RP by approving the resolution plan approved by the CoC without passing any relief to waive off various dues that are payable by the Corporate Debtor in accordance with law, however we make it clear that it is left open to the Corporate Debtor to pursue its remedies in accordance with law. 18. As to MA 527/2019 moved by the unsuccessful bidder, it is hereby held that CoC has every right to decide which plan is feasible and viable and approve the same, accordingly the CoC decided and approved the plan basing on feasibility and viability whereupon we have not found any infraction of the procedure laid for approval of the plan by CoC. Moreo....