TaxTMI 
TaxTMI 
2021 (4) TMI 53
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....ed public announcement on 30.06.2017, 02.07.2017 and 03.07.2017, inviting claims from the creditors of the Corporate Debtor. After receipt of claims, the IRP constituted the Committee of Creditors (CoC) of the Corporate Debtor on 21.07.2017. b. The CoC in its first meeting held on 28.07.2017, replaced the IRP with the Applicant as the Resolution Professional (RP) of the Corporate Debtor. This Bench by order dated 06.10.2017 confirmed such appointment. c. The Applicant filed MA No. 674 of 2017 for extension of the period of CIRP by 90 days. This Bench however dismissed the same vide order dated 09.01.2018. On an Appeal before the Hon'ble NCLAT the order was set aside and the period of CIRP was extended by 90 days as per order dated 05.03.2018. 3. The advertisement for Expression of Interest (EoI) issued on 28.11.2017 and 26.04.2018 by the RP evoked no response and subsequent to the advertisement in Form G issued on 26.05.2018, the Applicant received EoIs from 2 (two) Prospective Resolution Applicants (PRAs), namely (a) Khemnani Distributors and Marketing Limited and (b) P K Hospitality Services Private Limited. The last date for submission of Resolution Plan was....
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....ion of two months' time to complete the CIRP which was allowed by this Tribunal vide order dated 08.02.2021. 10. The CoC in its 13th to 17th meetings considered the Resolution Plans received from Om Shri Shubh and P K Hospitality and suggested suitable changes. 11. After due verification of the eligibility of the PRAs in terms of Section 29A of the Code, the CoC in its 18th meeting held on 08.01.2021 considered the revised Resolution Plans and approved the plan of P K Hospitality with the voting share of 88.78%. 12. The Manner of voting by the CoC is as below: Sr. No. Financial Creditors Voting Share (%) For (%) Against (%) Abstained (%) 1 IDBI Bank 2.83 2.83 - - 2 SREI 6.05 6.05 - - 3 SIDBI 2.02 2.02 - - 4 IFCI FATORS 4.51 - - 4.51 5 Mr. Ketan Singhvi 0.02 - - 0.02 6 Bhuwalka Commercial Pvt Ltd 0.05 - - 0.05 7 Ramkumar Birendra Kumar Pvt Ltd 0.05 - - 0.05 8 Axis Bank 6.68 6.68 - - 9 Bank of Maharashtra 4.08 4.08 - - 10 Edelweiss ARC 41.45 41.45 - - 11 Mr. Neerav San....
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....Employees of the Corporate Debtor: No Workmen or Employees claims have been received by the Resolution Professional. iii. Financial Creditor: The total amount of Rs. 29.09 Crores of Financial Creditors to be paid within 180 days from the date of approval of the Resolution Plan. It shall be after the payment of CIRP costs, Labour Liabilities and payments to be made to Dissenting Financial Creditors, if any. d. INFUSION OF FUNDS: The total amount of Resolution Plan is Rs. 31.59 Crores, out of which the SRA will infuse Rs. 26.06 crores as Share Capital and Rs. 5.53 Crores as Unsecured Loan. e. REDUCTION of SHARE CAPITAL It is proposed to reduce the paid-up share capital of the Company (Corporate Debtor) from Rs. 26,16,41,500/- to Rs. 10,46,570/- thereby reducing the existing paid-up share capital by approximately 99.60%. Further shares with face value of Rs. 10/- to be allocated against the reduced capital of Rs. 10,46,570/- which will result in 1,04,657 shares. f. MANAGEMENT OF THE CORPORATE DEBTOR: The SRA proposes to appoint Mr. Pravin Agarwal as Manging Director and Mr. Ram Niranjan Bhutra as Non-Exec....
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.... The Resolution Plan is in compliance of Regulation 38 of the Regulations in terms of Section 30(2)(f) of the Code as under: a. Payment to Operational Creditor will be made in priority over Financial Creditor (Regulation 38(1)(a)). b. The Plan provides for payment of the liquidation value to the Financial Creditors who abstained from voting during the approval of the Resolution Plan, in priority to the assenting Financial Creditors, in compliance of Regulation 38(1)(b) of the Regulations. c. Declaration by the Resolution Applicant that the Resolution Plan has considered the interest of all the stakeholders of the Corporate Debtor, keeping in view the objectives of the Code (Regulation 38(1A)). d. Declaration by the SRA that neither the Resolution Applicant nor any of his related party has either failed or contributed to the failure of the implementation of any other approved Resolution Plan (Regulation 38(1B)). e. The plan also provides for term and implementation schedule, management and control of the Corporate Debtor and adequate means for supervising its implementation (Regulation 38(2)). f. The Resolution Plan also addresse....
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....s: 2019 SCC Online SC 257 (2019) 12 SCC 150) the Hon'ble Apex Court held that if the CoC had approved the Resolution Plan with requisite percent of voting share, then as per section 30(6) of the Code, it is imperative for the Resolution Professional to submit the same to the Adjudicating Authority (NCLT). On receipt of such a proposal, the Adjudicating Authority is required to satisfy itself that the Resolution Plan as approved by CoC meets the requirements specified in Section 30(2). The Hon'ble Court observed that the role of the NCLT is 'no more and no less'. The Hon'ble Court further held that the discretion of the Adjudicating Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan "as approved" by the requisite percent of voting share of financial creditors. Even in that enquiry, the grounds on which the Adjudicating Authority can reject the Resolution Plan is in reference to matters specified in Section 30(2) when the Resolution Plan does not conform to the stated requirements. 22. In CoC of Essar Steel (supra) the Hon'ble Apex Court clearly laid down that the Adjudicating Authority would not have power to modify the Resolution Plan whic....