TaxTMI 
TaxTMI 
2019 (12) TMI 1397
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....t submits that the CIRP was conducted in compliance to the terms of the Code and the relevant Rules and Regulations. The Resolution Professional submits that advertisements inviting claims from the creditors were issued, valuers were appointed, advertisement inviting Expression of Interest (EOI) was published in two newspapers, Information Memorandum was prepared, three Expression of Interests (EOI) were received from three prospective Resolution Applicants, however, none had complied with the criteria as set out by the Members of the CoC U/s 25(2) (h) of IBC. Further it was brought to the notice of the CoC that the Applicant received an email from a Prospective Resolution Applicant, however, the said EOI was received after the last date and therefore the same was put up before CoC for consideration. The CoC concluded that the said EOI may be entertained. 3. It is submitted by the RP that he received resolution plan from the Resolution Applicant. It is stated that, the resolution plan confirmed to the condition's U/s 30(2) of the I&B Code and the RP submitted a note, certifying the same, to the CoC. The RP has confirmed that the resolution applicant aims and believes that th....
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....m Tele Infrastructure Private Ltd, Nucleus Energy Pvt. Ltd and Saffron Broadcast & Media Ltd have formed a consortium in order to jointly enter a resolution plan in the CIRP of the Corporate Debtor. This consortium is led by Vyom Tele Infrastructure Private Ltd. 9. The Resolution Applicant vide his Resolution Plan submits that they intend to continue the business of the Corporate Debtor as a going concern. It is submitted by the Resolution Applicant that the Corporate Debtor has a healthy portfolio of listed and unlisted stocks/shares which can yield healthy returns for Corporate Debtor in the long run. The Corporate Debtor has trade receivables which are due to be paid to the Corporate Debtor, the Resolution Applicant will make efforts to recover the said trade receivables. The Resolution Applicant is desirous of entering the business of financing and advancing short term & long-term loans and credit to individuals, companies or associations of individuals. The Corporate Debtor has been a part of the financing business for over four decades and has a good foothold in the business of financing and advancing short term & long-term loans. 10. As per the Resolution Plan, from th....
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....and supervision of the resolution plan; (e) does not contravene any of the provisions of the law for the time being in force; (f) conforms to such other requirements as may be specified by the Board. (3) The resolution professional shall present to the committee of creditors for its approval such resolution plans which confirm the conditions referred to in subsection (2). (4) The committee of creditors may approve a resolution plan by a vote of not less than sixty six percent of voting share of the financial creditors. (5) The resolution applicant may attend the meeting of the committee of creditors in which the resolution plan of the applicant is considered: Provided that the resolution applicant shall not have a right to vote at the meeting of the committee of creditors unless such resolution applicant is also a financial creditor. (6) The resolution professional shall submit the resolution plan as approved by the committee of creditors to the Adjudicating Authority" 15. Section 31 of the Code provides as below: "(1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under s....
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....ctronically within the time given in the request for resolution plans under regulation 36B along with (a) an affidavit stating that it is eligible under section 29A to submit resolution plans; (c) an undertaking by the prospective resolution applicant that every information and records provided in connection with or in the resolution plan is true and correct and discovery of false information and record at any time will render the applicant ineligible to continue in the corporate insolvency resolution process, forfeit any refundable deposit, and attract penal action under the Code. (1A) A resolution plan which does not comply with the provisions of sub-regulation (1) shall be rejected. (2) [The resolution professional shall submit to the committee all resolution plans which comply with the requirements of the Code and regulations made thereunder along with the details of following transactions, if any, observed, found or determined by him:- (a) preferential transactions under section 43; (b) undervalued transactions under section 45; (c) extortionate credit transactions under section 50; and (d) fraudulent tran....
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....e I&B Code. It would also result in doing violence to the legislative intent of having consciously not stipulated that as a ground - to challenge the commercial wisdom of the minority (dissenting) financial creditors. Concededly, the process of resolution plan is necessitated in respect of corporate debtors in whom their financial creditors have lost hope of recovery and who have turned into non-performer or a chronic defaulter. The fact that the concerned corporate debtor was still able to carry on its business activities does not obligate the financial creditors to postpone the recovery of the debt due or to prolong their losses indefinitely. Be that as it may, the scope of enquiry and the grounds on which the decision of "approval" of the resolution plan by the CoC can be interfered with by the adjudicating authority (NCLT), has been set out in Section 31(1) read with Section 30(2) and by the appellate tribunal (NCLAT) under Section 32 read with Section 61(3) of the I&B Code. No corresponding provision has been envisaged by the legislature to empower the resolution professional, the adjudicating authority (NCLT) or for that matter the appellate authority (NCLAT), to reverse the ....