2021 (4) TMI 673

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....esolution Professional (IRP). In the first meeting of the Committee of Creditors (CoC) held on 31.10.2019, the IRP was replaced with the Applicant as the Resolution Professional (RP) of the Corporate Debtor. This Tribunal by order dated 05.02.2020 confirmed the appointment of the Applicant as such. ii. The Applicant filed MA No. 668 of 2020 for extension of CIRP period and for exclusion of 90 days from the CIRP period towards delay in confirmation of the appointment of Applicant as RP by this Tribunal. MA 668/2020 was allowed by this Tribunal vide order dated 26.02.2020 extending the period till 24.08.2020. iii. On 25.02.2020 the Applicant made an advertisement inviting expression of interests (EOIs) from prospective resolution applicants (PRAs). Pursuant thereto, the Applicant received EOIs from two persons and both of them were identified as qualified prospective applicants for participating in the Resolution Plan process of the Corporate Debtor. Therefore, the Applicant suggested the CoC to make another attempt at inviting EOI. Accordingly, on 19.03.2020 the Applicant again made an advertisement inviting EOIs. The Applicant shared with the CoC a provisional lis....

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....rs. The company is registered as MSME and certificate of the same is in force (annexed to the Application). b. TERM OF RESOLUTION PLAN: The term of the Resolution Plan is 12 months. c. MODE OF FINANCE & SCHEDULE: The mode of finance and schedule of the Resolution Plan is as under: (Amount in Lakhs) Sr. No. Sources Proposed Schedule of Payment   Amount % 90 days In 6 months 6-12 months Total 1. Equity Funds 50 3.33% 25 25   50 2. Secured Loan 1000 66.67% 200 800   1000 3. Unsecured Loan/quasi equity 450 30.00%   50 400 450   Total 1500 100% 225 875 400 1500 The Resolution Applicant has obtained a sanction letter dated 26.11.2020 issued by Market Purse Global Corporation, for an amount of Rs. 28 Crores to be sanctioned as loan against property in favour of TPIPL. The said sanction letter is considered by the CoC in 12th CoC meeting held on 27.11.2020. d. CAPITAL REDUCTION & EQUITY INFUSION: The existing share capital of the company will be entirely extinguished and th....

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....       d. Dept of GST 326.1 39.13 12% 39.13     e. TDS 22.04 2.64 12% 2.64     f. Income Tax 0 4.75 12% 4.75     Sub Total 4 1285.5 195.52 12% 195.52   195.52   5. Contingent Liabilities - 12.08 - 12.08   12.08   6. Working Capital - 100.00 - 50.00 50.00 100.00     Total Amount 3202.69 1500.00   1096.69 403.31 1500.00 Note 1 - CIRP Costs: The CIRP costs as proposed (Rs. 125 Lakhs) subject to actual outstanding dues will be fully paid by the RA in priority of all other creditors within first 3 to 6 months. Note 2 - Financial Creditors: Payment to Financial creditors will be made in multiple instalments within 6 to 12 months maximum. Note 3 - Employees and Workmen dues: The payment for dues of pending Salary, Provident Fund, ESIC, Prof. Tax and others, Employee Society and Gratuity will be made within first 6 months. Note 4 - Operational Creditors: Payment to Operat....

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.... that the Resolution Plan meets the requirements of Section 30(2) of the Code in the following manner: a. Plan provides for the priority payment of CIRP costs in full from the fund to be infused by the Resolution Applicant. b. To pay the Operational Creditors of the Corporate Debtor in the manner indicated supra. It is submitted that the Liquidation Value of the Corporate Debtor is Rs. 6,11,64,690/- and Fair Market Value is Rs. 10,54,78,384/-. The estimates of liquidation value made by the Resolution Applicant do not provide full recovery to the Financial Creditors, and there is no amount, as such, available for the Operational creditors out of the liquidation value. However, the Resolution Applicant has provided an amount of Rs. 195.52 Lakhs to all the Operational Creditors (including Operational Creditors who have not submitted their claims in view of the fact that they are going to be future suppliers). c. Plan provides for the management of the affairs of the Corporate debtor after approval of the Resolution Plan; d. Plan provides for the implementation and supervision of the Resolution Plan; e. The Resolution Applicant has given a d....

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............... A successful resolution Applicant cannot suddenly be faced with "undecided" claims after the Resolution Plan submitted by him has been accepted as this would amount to a hydra head popping up which would throw into uncertainty amounts payable by a prospective resolution Applicant who successfully take over the business of the corporate debtor. All claims must be submitted to and decided by the resolution professional so that a prospective resolution Applicant knows exactly what has to be paid in order that it may then take over and run the business of the corporate debtor. This the successful resolution Applicant does on a fresh slate, as has been pointed out by us hereinabove." 9. In view of the above ruling of the Apex Court, the Resolution Applicant takes over the Corporate Debtor with all its assets and liabilities as specified in the Resolution Plan subject to orders passed herein. As already indicated the Resolution Plan has been approved by the CoC in its meeting held on 27.11.2020 with 100% votes. 10. In K.Sashidhar v. Indian Overseas Bank & Others: 2019 SCC Online SC 257 (2019) 12 SCC 150) the Hon'ble Apex Court held that if the CoC had approved ....