AI Drafter 
TaxTMI 
TaxTMI 
2021 (6) TMI 93
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment on 16.09.2017 inviting claims from the creditors of the Corporate Debtor. After receipt of the claims the IRP constituted the Committee of Creditors (CoC) of the Corporate Debtor on 10.10.2017. The IRP conducted the 1st meeting of the CoC on 16.10.2017. The CoC resolved to appoint the Applicant as the Resolution Professional (RP) of the Corporate Debtor and the same was confirmed by this Bench. c) Since there was no response for the Form-G issued by the RP on 22.11.2017 another Form-G was issued on 04.06.2018, inviting Expressions of Interest (EOI) from Prospective Resolution Applicants (PRAs). The last date for submission of Resolution Plan was 29.08.2018. d) The CIRP period for the Corporate Debtor was extended by 90 days by this Tribunal vide order dated 02.08.2018. e) It is submitted by the Applicant that post introduction of section 240A in the Code on 06.06.2018, he received Resolution Plan from a PRA, Mr. Gururaj S R (erstwhile Director of the Corporate Debtor) on 20.08.2018. f) After due verification of the eligibility of the PRA in terms of Section 29A of the Code, the CoC in its 9th meeting held on 10.09.2018 discussed the Resoluti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Authority will be managed by Mr. Baddi, a Science Graduate, who is with the Company from 2011 and has more than 20 years' experience in alloy making. Further assistance will be provided by Mr. Chandrashekar, who is with the Company for more than 10 years and has more than 20 years of experience in the Sector. f) IMPLEMENTATION, SUPERVISION OF THE RESOLUTION PLAN AND DAY-TO-DAY MANAGEMENT TEAM: The Resolution Plan proposes that the powers of the Board of Directors will get reinstated upon the approval of the Plan. The Board would appoint a Monitoring Committee for implementation and supervision of the Resolution Plan comprising of whole-time director and Independent director. It is submitted that the unit will have able guidance from Mr. C. Suresh Kumar who is in the Steel and Ferro Alloys Sector from more than 4 decades and was associated with the Company from 2005 to 2010. g) COMPLIANCE OF MANDATORY CONTENTS OF RESOLUTION PLAN UNDER THE CODE AND THE REGULATIONS: It is submitted that the Applicant has conducted a thorough compliance check of the Resolution Plan in terms of the Code as well as Regulations 38 and 39 of the Insolvency and Bankru....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat neither the Resolution Applicant nor any of his related parties has either failed or contributed to the failure of the implementation of any other approved Resolution Plan (Regulation 38(1B)). e. Provides for term and implementation schedule, management and control of the Corporate Debtor and adequate means for supervising its implementation as per clause 8 and 15 thereof (Regulation 38(2)). f. The Resolution Plan also addresses the cause of default, feasibility and viability, as per clause 8 and 15 thereof as required under Regulation 38(3) of the Regulations. 6. The SRA has sought certain reliefs and concessions in the Resolution Plan. It is submitted that the electricity connection has been disconnected by the Goa Electricity Board (GEB) due to non-payment of dues of INR 1.95 Lakhs. The GEB has collected minimum demand charges during the closure period which as per the Sick Industrial Policy of the Central Government needs to be refunded. Further, Sick Industrial Policy envisages waiver of interest and penalties during the closure period. With these waivers put in place an amount of approx. INR 20 Lakhs is to be refunded by GEB and RA proposes to use thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o consider exemption/grant of relief to the company from the provisions of Sections 28, 41(1), 45, 72 (3), 43-B, 79, 80 read with 139, 115JB and the provisions of Chapter XVII of the Income Tax Act and other applicable provisions of the Income tax Act for delayed/non-payment of TDS, delay and non-filing of income tax returns stipulated u/s. 139 and other omissions/lapses. Further, to consider waiver of penalty/damages, interest, if any charged on the income tax arrears for the past years. e. The SRA has sought relief regarding transfer of lease hold rights in respect of land measuring 2679.50 square metres owned by Goa Industrial Development Corporation (GIDC). The Unit was acquired by the Company in 2004 from GIDC. The Unit as per records was comprising of 4017 square metres of land, building, plant and machinery and substation. However, the available land was 6696.50 square meters bound by a Single Compound marked as plot no 118A and 118B. Some of the equipments were located in the 4017 square meters handed over and others in 2679.50 which were embedded to the land and which was very essential to store raw materials. In this background, the Company had paid requisite fee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....perative 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. 11. 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 which the CoC in their commercial wisdom have approved. In para 42 Hon'ble Court observed as under: "Thus, it is clear that the limited judicial review available, which can in no c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nything other than the liabilities referred to in Paras supra. v. The moratorium under Section 14 of the Code shall cease to have effect from this date. vi. The Applicant and the Monitoring Committee shall supervise the implementation of the Resolution Plan and the Applicant shall file status of its implementation before this Authority from time to time, preferably every quarter. vii. The reliefs and concessions would abide by the following. a. As far as the reliefs sought from the Commercial Tax department and GEB is concerned, SRA has to apply to the relevant department for necessary reliefs. The Department concerned may consider their application, as far as practicable favourably, in accordance with the law. b. With regard to reconnection of water supply from the Goa Public Works Department (PWD), the SRA has to apply for the same. PWD shall not insist on payment of pre-CIRP dues while dealing with such application. c. As regards reliefs sought under disconnection of electricity, the SRA may apply to GEB for the exemptions as may be necessary and such application may be considered in accordance with the law for the successful....