TaxTMI 
TaxTMI 
2021 (5) TMI 432
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....t the Corporate Debtor M/s. PRC International Hotels Private Limited in CP/540/IB/2018 the said Application stood admitted and CIRP was initiated on and from 24.07.2018. (ii) During the CIRP of the Corporate Debtor, Resolution of the Insolvency took place in as much as a Resolution Plan was approved by the CoC on 24.06.2019 and thereafter the same was submitted before this Tribunal in terms of Section 30 read with Section 31 of the IBC 2016. The said Resolution Plan in MA/651/2019 was approved by this Tribunal vide Order dated 27.08.2019. Consequently the CIRP initiated in relation to the Corporate Debtor ceased to have any effect and the affairs of the Corporate Debtor, namely, M/s. PRC International Hotels Private Limited, was taken ove....
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....ion costs incurred by RP and Monitoring Committee taking into consideration the resolution passed by the CoC about litigations post approval of the resolution plan of NCLT had been handled in respect of the CIRP proceedings and that the cost of the legal proceedings ought to be met from the amount payable to the related parties as decided by the CoC. 2. Thus, the fulcrum of the Application centers around the challenge to the said Resolution as passed by the CoC to meet the expenditure in relation to the additional litigation costs out of the amounts payable to the related party, the Applicant being one of them, however, not being provided in the Resolution Plan. In the circumstances, the Applicant seeks for the disbursal of the amount of R....
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....lated parties financial creditors including the Applicant and in that connection it is contended that the CoC was well within their powers in modifying the resolution plan by allocating such a portion of the amounts allocated to related party financial creditors to meet the contingent litigation costs. In the meanwhile, it is also pointed out that prior to the approval of the resolution plan, Applications filed by unsecured financial creditors, namely, the estate of late Mr. Mukanchand Bothra and Mr. Jonathan Muralidarane, in relation to the claim was determined by this Tribunal vide Orders dated 02.07.2019 & 31.07.2019 and in the circumstances since it was directed to consider increase in the resolution plan amount or to treat the said par....
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....ched this Tribunal much after the resolution plan itself has been implemented and the Corporate Debtor has been handed over to the 2nd Respondent and that the Monitoring Committee has been disbanded, this Application deserves to be dismissed. 7. During the course of the submissions made by the Counsels for the parties before this Tribunal, Ld. Counsel for the Applicant brings to the notice of this Tribunal about the Order passed by this Tribunal in MA/651/2019 dated 27.08.2019 while approving the resolution plan. Particular attention of this Tribunal was drawn by the Ld. Counsel for the Applicant to paragraph 9 under the caption "analysis of resolution plan", and from the same, it is evident that the total Resolution Plan amount for stakeh....
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....In the circumstances, as evident from the paragraph 16 of the said Order dated 27.08.2019 in line with Section 31 of the IBC 2016 all the parties are bound by the terms of the said resolution plan, which has been approved by this Tribunal on and from the date of the Order approving the resolution plan, which also includes the CoC as well as the 1st Respondent and the Resolution Applicant. 10. In the said circumstances, we do not find any force in the contention of the 1st Respondent that the CoC has passed a resolution in its 9th CoC Meeting dated 24.06.2019 that additional litigation cost is required to be met out of amounts due and payable to the related party financial creditors like the Applicant herein and that the said expenses are r....