TaxTMI 
TaxTMI 
2019 (8) TMI 1707
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.... 2016 and initiated Corporate Insolvency Resolution (CIR) Process against the Corporate Debtor, declared moratorium and appointed one Mr. Venkata Siva Kumar as the IRP. ii. Subsequently, this Authority vide Order dated 21.08.2018 passed in MA/325/2018, replaced the IRP with one Mr. Ebenezar Inbaraj as suggested by the CoC and later he was confirmed as Resolution Professional. Thereafter, the Resolution Professional invited Expression of Interest" ("EoI") in Form - G on various dates i.e. 15.10.2018, 15.11.2018 and 11.12.2018 fixing 06.02.2019 as last date for submission of Resolution Plan. iii. Pursuant to the said invitation of "EoI", the Resolution Professional has received three "EoIs" viz., (1) M/s. Chandran Enterprises through Proprietor Mr. S. Varadharajan, (2) Mr. G.S. Body Builders Pvt. Ltd., and (3) Mr. Gagan Bothra. The Resolution Plans submitted were placed before the CoC for deliberations. The CoC, upon deliberations, found that the "EoIs" received from M/s. Chandran Enterprises through Proprietor Mr. S. Varadharajan and Mr. G.S. Body Builders Pvt. Ltd., were eligible and the "EoI" received from Mr. Gagan Bothra was found to be ineligible. However, in ....
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....Ltd. Mumbai and Mr. Gagan Bothra as ineligible. x. The ineligible "EoI" Applicant viz., Mr. Gagan Bothra again filed MA/490/IB/2019 against the rejection of "EoI". This Authority vide Order dated 27.05.2019 directed the Resolution Professional to consider the "EoI" of Mr. Gagan Bothra by giving him due opportunity in consultation with the CoC. In pursuance of the same, the Resolution Professional gave another opportunity to Mr. Gagan Bothra and requested him to submit the necessary documents in order to substantiate his eligibility as per the terms laid by the CoC. xi. Accordingly, the Resolution Professional in the 8th CoC Meeting held on 17.06.2019 placed the documents received from Mr. Gagan Bothra, for deliberations before the CoC. After much discussions and deliberations on the various documents submitted by Mr. Gagan Bothra in support of his "EoI", the CoC constituting 89.51% of the voting share, decided to reject the "EoI" of Mr. Gagan Bothra and passed a Resolution to that effect. xii. In the same 8th CoC Meeting, the Resolution Professional has placed the Resolution Plans received from M/s. Sai Baba Business Solutions Pvt. Ltd., and from Mr. Gaga....
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..... Jonathan Mouralidarane to the tune of Rs. 5,10,72,990/- (Rupees Five Crores Ten Lakhs Seventy Two Thousand Nine hundred and Ninety Only). 4. This Authority vide Order dated 02.07.2019 passed in MA/518/2018 allowed the claim of Mr. Mukanchand Bothra and directed the Resolution Profession to treat the claim of Mr. Mukanchand Bothra at par with other unsecured Financial Creditors and make the appropriate provision for payment to which they are entitled, in consultation with the CoC and the Resolution Applicant. Further, this Bench vide Order dated 31.07.2019 passed in MA/462/2018 also allowed the claim of Mr. Jonathan Mouralidarane and similarly directed the Resolution Profession to treat the claim of Mr. Jonathan Mouralidarane at par with other unsecured financial creditors and make the appropriate provision for payment to which they are entitled, in consultation with the CoC and the Resolution Applicant. 5. In pursuance of the same, the Resolution Professional has stated that, initially the Resolution Applicant has proposed to pay a sum of Rs. 7,80,73,544/- towards the claims of the Unsecured Financial Creditors which constitute 90% payout of the admitted claims. After the a....
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....r, no claim/objections were made by the Statutory Creditors viz. IT Department and EPF Organization. 8. The Resolution Professional has stated that the Related Parties of the Corporate Debtor and the other objectors have all raised a common objection to the Resolution Plan, whereby they did not agree to the percentage of payout being made by the Resolution Applicant in the Resolution Plan and further stated that the liquidation value of the property is much more than the value offered by the Resolution Applicant. However the Resolution Professional has stated that the Related Parties are being treated at par with other unsecured financial creditor and Resolution Applicant is at liberty to distribute the Resolution Plan amount to the stakeholders at their discretion within the provisions of I&B Code, 2016. ANALYSIS OF RESOLUTION PLAN: 9. As has been mentioned in the preceding paragraphs, the Resolution Applicant had increased the Resolution Plan amount to sum of Rs. 28,55,06,654/- thereby the payout percentage to the Operational Creditor was increased from 70% to 80% as detailed in the tabular column herein below: No. Stakeholders Proposed Resolution Plan Amount ....
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....n of the Resolution Plan. The approved Resolution Plan shall be deemed to have been completed upon the occurrence of the following: i. Payments made to all stakeholders completely, in full satisfaction of their claims as contemplated under the approved Resolution Plan and ii. All reliefs, concessions and approvals as sought for under the proposed Resolution plan are provided as sought for the satisfaction of the Resolution Applicant. And for the above, the Resolution Applicant anticipates that the duration would be 30 days, upon the completion of which the IMC as constituted would stand disbanded. 13. The Resolution Plan has sought for certain Reliefs which are as follows:- AS TO LIABILITIES, PROCEEDINGS, ETC: * All liabilities of PRC and guarantees extended by PRC whether monetary or non-monetary, statutory, crystallized or not crystallized, claimed or not claimed, admitted or not admitted, disputed or not disputed, confirmed or contingent or due or overdue or future due, and all such duties of the Corporate debtor PRC shall stand extinguished and discharged in full without any recourse to SBBPL upon approval of the Proposed Resoluti....
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.... all creditors of PRC, including and not limited to the Secured and Unsecured, Operational, Other and Financial creditors, whether admitted or not admitted, claimed or not claimed with the RP. * All licenses shall continue to stand vested, fully in favour of PRC after approval of this proposed Resolution plan without any hindrance or any further approval thereof, despite the change in management of PRC as contemplated under this proposed resolution plan. AS TO TAXES AMD EXEMPTIONS: * Direct the Income tax authorities to grant the benefit of carry forward and set-off losses under applicable sections of the Income Tax act 1961 including Sec. 2(1B), Sec. 72A, Sec. 79 Proviso 3 there-under. Relief shall also be granted so as to exempt PRC from tax liability that might arise upon write-back of amount that would arise on account of the reduction in liability payable to the Creditors of PRC. Further, upon the Resolution plan becoming effective, notwithstanding anything to the contrary contained in the provisions of the plan, all accumulated tax losses, unabsorbed tax depreciation, Minimum Alternate credit, if any, of PRC as on the date on which Adjudicating Auth....
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....which they shall be deemed as having retired and the Firm/Individual nominated by the SBBPL shall be designated and appointed as the Statutory Auditor of the Company. d. Others: All Powers of attorney, mandates, corporate authorizations and permissions granted by the company PRC shall stand revoked. All outstanding negotiable instruments issued by the corporate debtor shall stand terminated or discharged without liability. OTHERS: * Direct that all present share holders including the current promoters, the directors; their associates and their related parties in whose name the Equity shares of PRC shall stand, shall upon approval of this Resolution Plan, surrender their entire holding of the said Equity shares, irrespective of whether they still held so or have pledged or encumbered the same, to the SBBPL or their nominees as the case may be. The said shares shall stand transferred to SBBPL upon payment of the nominal exit price of Rs. 1 (Rupee one only) per Equity Share being the consideration in full and final settlement payable on or before 30 days. Upon payment of the said sum the holders of the Equity shares as aforesaid shall surrender the ....