TaxTMI 
TaxTMI 
2021 (7) TMI 144
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....itiated by this Bench by an order on 14.05.2020 and the Applicant was appointed as Interim Resolution Professional (IRP). The Committee of Creditors (CoC) comprising the following Financial Creditors, in its 1st meeting had confirmed the 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. In the said meeting, BDO Restructuring Advisory LLP ("BDO") was appointed for providing support services to the Resolution Professional. Financial Creditors (CoC) 2.2. In the third CoC meeting held on 30.07.2020, the CoC approved the constitution of corpus fund till the completion of CIRP. In the fourth meeting IMAP India (Catalytic Solution & Management Services Private Limited) was appointed as bid process advisors for the Corporate Debtor. During the period of CIRP seventeen EOIs were received which included 12 EOIs from strategic investors, 01 EOI from Special Situation Fund and 4 EOIs from Asset Reconstruction Companies. In the meantime, this Bench passed orders in IA 182 of 2020 extending 90 days period beyond 180 days, excluded 92 days owing to Covid induced lockdown a....
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....al creditors and the distribution of voting share among them is as under:- (C) The Resolution Plan dated 19.05.2021 for an amount of Rs. 100,50,000/- (Rupees One hundred crores and fifty lakhs only) provided for the stake holders under the Resolution Plan is as under:- It is stated the above claims include the amounts which have been admitted by the Resolution Professional and are not inclusive of the claims that are contingent to pending legal proceedings. Any other claim not admitted by the Resolution Professional does not form part of the Successful Resolution Plan. (D) TERMS OF THE PLAN (1) The total outstanding financial debt of the Corporate Debtor admitted towards its Financial Creditors, as of May 15, 2021, is INR 386,10,36,125 (Indian Rupees Three Hundred and Eighty-Six Crores Ten Lakhs Thirty-Six Thousand One Hundred and Twenty-Five). ("Admitted Outstanding Financial Debt"). (2) The details of the total admitted outstanding operational debt of the Corporate Debtor as of May 15, 2021, is INR 85,03,39,879 (Indian Rupees Eighty Five Crores Fifty Three Lakhs Thirty Nine Thousand Eight Hundred and Seventy Nine) and the total contingent outstanding operational debt ow....
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....ore than INR 6,00,00,000 (Indian Rupees Six Crores), then incremental amount beyond INR 6,00,00,000 (Indian Rupees Six Crores) shall be adjusted from the Workmen 8B Employee Settlement Amount, except the fixed amount of INR 1,22,23,019 (Rupees One Crore Twenty-Two Lakhs Twenty-Three Thousand and Nineteen) to be paid to the workmen. In case there is an increase in CIRP Cost on any account other than the workmen and employees such that total CIRP Cost becomes more than INR 6,00,00,000 (Indian Rupees Six Crores), then the incremental amount up to INR 2,00,00,000 (Rupees Two Crores) shall be adjusted from the amount payable to all the Creditors in the same proportion as proposed by the Resolution Applicant in the financial proposal for the Creditors. (6) The Workmen and Employees are proposed to be paid INR 5,43,55,969 (Rupees Five Crores Forty-Three Lakhs Fifty-Five Thousand Nine Hundred and sixty-nine Only) including amounts due for provident fund, within 30 days of the Plan Approval Date. (7) An amount of INR 11,87,476 (Rupees Eleven lakhs Eighty-Seven Thousand Four Hundred and Seventy-Six only) is proposed to be paid to the operational creditors, within 30 days from the Plan Ap....
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....ept this offer which shall be subject to majority decision (66%) of the CoC by admitted claim amounts which shall be binding on the CoC and the proceeds shall be distributed to the beneficiaries i.e., secured financial creditors only. The Resolution Applicant before offering the said additional cash consideration to the secured financial creditors shall deposit the amount under the Successful Resolution Plan in an escrow at least 3 days prior to the date of payment. (11) In addition to the infusion of the capital to the extent of the amounts to be paid under the Successful Resolution Plan, the Resolution Applicant is proposing to infuse an additional capital of up to INR 150,00,00,000/- (Rupees One Hundred Fifty Crores) post the implementation of the Successful Resolution Plan. Such additional amount will be utilized for undertaking capital expenditure and meeting working capital requirements of the Corporate Debtor. (12) All amounts due or payable by the Corporate Debtor to the financial creditors who are related parties under section 29A of the Code, whether admitted as claims or not, shall stand cancelled, waived, and remitted by the respective financial creditor, and upon a....
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....dation value of the Corporate Debtor is Rs. 85.46 crores and Fair Market value is Rs. 144.05 crores. In the event the Liquidation value of the aforesaid operational claims is not more than the said proposed payment, the same is in compliance with the IBC requirement. 8. The Resolution Applicant has inter-alia, sought certain reliefs and waivers under the plan which are detailed at paras 67 to 104 of the Application. 9. The Resolution Applicant proposed 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 Plan 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 Creditors (Regulation 38(1)(a)). (b) Declaration by the Resolution Applicant that the Resolution Plan has considered the interest of all the stakeholders of the Corporate Debtor, keeping in view the objectives of the Code (Regulation 38(1A)). (c) Declar....
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.... 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 judgment. 15. The Applicant/Resolution Professional has submitted that the Resolution Applicant has sought certain waivers and reliefs at para (N) of the Resolution Plan. We are, however, not inclined to grant such concession or waivers. The Resolution Applicant needs to approach the authorities concerned for permits, if required, and the same will be considered by the authorities concerned in accordance with law. 16. 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. ORDER 17. Heard the Counsel who appeared for the Applicant. I have very carefully gone through the resolution plan which is submitted for the ....