TaxTMI 
TaxTMI 
2021 (3) TMI 100
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....s appointed as Interim Resolution Professional (IRP). ii. The Applicant carried out public announcement on initiation of CIRP on 11-12-2019. After collation of claims and determination of the financial position of the CD, a Committee of Creditors (CoC) was duly constituted by the Applicant with a sole FC. iii. During the first meeting held on 7-1-2020 (Page 61 of Application), CoC appointed the Applicant as the Resolution Professional (RP) for the CD. iv. During the third meeting of CoC held on 11-2-2020, a decision to invite Expression of Interest (EOI) was taken. EOI was published in prescribed Form G on 19-2-2020 in newspapers. The last date for submission of EOI as per Form G was fixed as 5-3-2020 (Pgs 79-84 of application). Accordingly, 5 EOIs (Pg 6), including EOI from the finally approved Resolution Applicant, were received. Evaluation criteria for Resolution Applicants is given on Page 6 of application. v. Meanwhile due to Covid-19 pandemic, the government announced nationwide lockdown. Thereafter Regulation 40C was inserted in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, ....
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.... 1,42,10,394 and the Liquidation value of CD is Rs. 97,50,252 (page 366). Whereas the amount proposed in Resolution Plan is Rs. 319.72 lakhs (page 359) which is higher than the Liquidation value. The sources of funds (sale of property) of RA are mentioned in clause 12.1 of the Resolution plan at page 231. xiii. Therefore, the present application dated 29-8-2020 has been filed under sections 30(6), 31 and 60(5) of the Code seeking approval of this Adjudicating Authority (AA) for Resolution Plan approved by the CoC by 100% favourable voting. The CIRP process has been run by the Applicant to maximize the asset value of the CD. The approved Resolution Plan has been analysed by the CoC before approving the same. xiv. Following is the payment plan (Pg 19) as of the Resolution Applicant: Particulars Amount (Rs lakh) CIRP Cost 15 Secured FC 300 OC including government dues 4.72 Total 319.72 3. Copies of Approved Plan along with addendum and voting result with minutes have been placed on record. In course of the hearing, no one has opposed the Resolution Plan. 4. We have heard the parties and perused the case records. 5. In view of th....
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....ides for the management of the affairs of the Corporate debtor after approval of the resolution plan; (d) The implementation and supervision of the resolution plan; (e) does not contravene any of the provisions of the law for the time being in force; (f) confirms to such other requirements as may be specified by the Board. Explanation. -For the purposes of clause (e), if any approval of shareholders is required under the Companies Act, 2013 (18 of 2013) or any other law for the time being in force for the implementation of actions under the resolution plan, such approval shall be deemed to have been given and it shall not be a contravention of that Act or law.]" 6. The provisions contained under section 30 (2) Code shows that the RP shall examine the Resolution Plan on the points that: (i) the plan provides for the payment of insolvency resolution process costs; (ii) the plan provides for the payment of debts of operational creditors in the manner specified by the Board. 7. Therefore, at this juncture, we would like to refer Regulation 38 of CIRP Regulations and the same are quoted below: - Regulation 38 - Mandato....
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.... payment of the debts of operational creditors which shall not be less than the amount to be paid to the operational creditors in the event of a liquidation of the CD under section 53. 10. In terms of Section 30 (2)(c), the Resolution Plan provides for management of affairs of the CD. The management of the affairs and control of the business of the CD has been provided at clause 20 (at page 242). The details of the experienced persons who will be in management of CD post-acquisition of control by RA are given in Schedule 7. 11. The fourth requirement envisaged by Section 30 (2)(d) is that it must provide for the implementation and supervision of the Resolution Plan. In this regard clauses 23 and 18.1 of Resolution Plan provide for Monitoring Committee (page 243). This Committee shall consist of a member of CoC and Nominees of RA and shall appoint RP to manage day-to-day affairs until full handover of assets of CD including business records, tax filings. 12. The fifth and sixth conditions in terms of Section 30 (2) (e) (f) of the Code provide to ensure that the Resolution Plan does not contravene any of the provisions of the law and conforms to such other requirements as ma....