TaxTMI 
TaxTMI 
2021 (6) TMI 482
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.... Applicant as Resolution Professional (RP). The Applicant in compliance of the provisions of the Code and Rules framed there under conducted the CIRP of the Corporate Debtor. 2.2 During the period of CIRP two Resolution Plans were received, one from M/s. Avaya Holdings & Trading Private Limited and another from Mikata Industries and Tech Services LLP. The CoC after several rounds of negotiations with the Resolution Applicants evaluated both the Resolution Plans as per the Evaluation Matrix. It accepted the Resolution Plan submitted by Mikata Industries of the successful Resolution Applicant in terms of Section 29 (A) of the Code, the CoC in its 9th Meeting held on 17.09.2020 considered the Resolution Plan of M/s. Mikata Industries and Tech Services LLP and approved the plan with the voting share of 100%. 3. The contour of the Resolution Plan: A. The Resolution Applicant is a LLP which is under formation with two Hyderabad based partners led by Shri S V S Shetty, Shri C. Chandra Sekhar and Sh. Ramesh Kumar. B. Financial Terms: The Resolution Plan is made for Rs. 8.55 crores based on induction of funds as well as sale of assets/transfer. The ter....
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....Corporate Insolvency Resolution Process) Regulations, 2016 (herein after referred to as Regulation) and has submitted his Form H under Regulation 39 (4). It is submitted that the Plan is in compliance with the provisions of the Code and the Regulations. It is further submitted that the Resolution Applicant is not ineligible under Section 29A of the Code. G. The Resolution plan provides to write off 90% of the present equity of the Corporate Debtor and conversion of the balance 10% into 1 equity share of Rs. 100/- face value for every 10 shares held after such write off with a provision to purchase such converted shares at par by the Resolution Applicant, without any further procedures/approvals H. Performance Security: Memo dated 20.02.2021 is filed by the Applicant herein enclosing Bank Guarantee bearing No. 021GT02210500003 dated 19.02.2021 from HDFC Bank for an amount of Rs. 20,00,000/- valid upto 18.02.2022 apart from Security Deposit of Rs. 10 lakhs as surety & security. 4. The Applicant submits that the Resolution Plan meets the requirement of Section 30 [2] of the Code in the following manner: A. Plan provides for the priority payment o....
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....stage. 6. The Applicant/Resolution Professional has submitted that, the Resolution Applicant has sought certain reliefs and concessions in the Resolution Plan relating to Income Tax in respect of remissions arising out of the resolution plan and for exemption of Capital gains to enable the dues to be settled through sale of assets as are mentioned in Para 12.0 of the Resolution Plan annexed to the application. We are however, not inclined to grant such concessions or waivers. The Resolution Applicant needs to approach the authorities concerned for permits, if required, and the same will be considered by the concerned authorities in accordance with law. 7. The Resolution Applicant proposes to appoint Directors to the Board of Directors as stated above in terms of Section 30 (2) (d). The Plan also provides for the implementation and supervision of the Resolution Plan. The Resolution Applicant has given a declaration that the Resolution Plan does not contravene any provisions of the law for the time being in force. The Resolution Plan is in compliance of Regulation 38 of the Regulations. a) The payment due to operational creditors will be made in priority over Financial....
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....nform to the stated requirements. 12. As held by Hon'ble Supreme Court in Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta & Ors "the limited judicial review available to AA has to be within the four corners of section 30(2) of the Code. Such review can in no circumstance trespass upon a business decision of the majority of the CoC. As such the Adjudicating Authority would not have power to modify the Resolution Plan which the CoC in their commercial wisdom have approved as held in para 42 of the said judgement. 13. In the light of above and settled position of law, the instant Resolution Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38 (1A) and 39 (4) of the Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law. The same deserves favourable consideration and accordingly IA No. 1025/2020 is allowed with the following directions. ORDER 13.1. The Resolution Plan submitted by Mikata Industries and Tech Services LLP annexed to the Application is hereby approved. It shall become effective from this date and shall form part of t....
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....DMITTED % TOTAL PAYABLE TERMS A Financial Creditors 1 Secured -Mystic 9,00,70,628 30% 2,70,21,188 From Assets Woods Holdings sale 2 Secured -Avaya 2,24,78,904 30% 67,43,671 From Assets Holdings sale TOTAL SECURED 11,25,49,532 3,37,64,860 FINANCIAL CREDITORS Document 3 B Financial creditors- Unsecured 1 Bakelite Hylam Ltd. 6,14,99,082 25% 1,53,74,771 From Assets sale 2 NPS Shinh * 68,31,738 25% 17,07,935 After Oper.cr are paid 3 Gulab Raut *18,84,817 25% 4,71,204 After Oper.cr are paid *50,000 25% 12,500 After Oper.cr 4 Vijaya Latha 5 Chandrakant Katage 5,000 25% 1,250 are paid After Oper.cr are paid C Total - Unsecured 7,02,70,637 25% Financial Crs 1,75,67,659 TOTAL FINANCIAL 18,28,20,169 28% 5,13,32,519 CREDITORS D EMPLOYEE DUES- GRATUITY 2,42,21,461 100% 2,42,21,461 Rs 23,61,457 E OTHER DUES-EMPLOYEES/EX- immed is, bal in 3 instal. in 3 years EMPLOYEES 1 24/12 MOS DUES 19,12,083 30% 5,73,625 within 2 months 2 VRS FUTURE DUES 13,12,98....