TaxTMI 
TaxTMI 
2021 (7) TMI 198
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....19 inviting claims from the creditors of the Corporate Debtor. After receipt of the claims the Applicant constituted the Committee of Creditors (CoC) of Corporate Debtor on 07.11.2019 and conducted its 1st meeting on 13.11.2019 wherein the CoC resolved to appoint the Applicant as Resolution Professional (RP). The same was confirmed by this Bench. b. The Applicant issued Form-G on 31.12.2019, inviting expression of interest (EoI) from prospective resolution applicants (PRAs). Two EoIs were received from PRAs namely, M/s. Yashasvee Textiles Private Limited and M/s. Accurate Bearings Private Limited. c. The Applicant received two Resolution Plans from the PRAs and the same were placed before the CoC for discussion. After discussions and negotiations between the CoC members and PRAs, it was decided that the PRAs should revise their respective plans. Accordingly, the Applicant received revised plans from M/s. Yashasvee Textiles Private Limited on 25.02.2020, 17.03.2020, 26.05.2020, 06.08.2020, 09.09.2020 and 05.10.2020. However, M/s. Accurate Bearings Private Limited was not inclined to revise its plan. d. The CoC in its 9th meeting held on 08.07.2020 resolved....
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....commercial or otherwise, of the CoC. The transfer date would accordingly be the 90th day from the approval of the Resolution Plan by this Authority. d. FINANCIAL TERMS: The total consideration under the Plan is Rs. 1,962 lakh + Rs. 383 lakh (to be infused as capital expenditure and working capital). Details of the plan outlay (plan consideration) are as follows: Note 1: Since during the CIRP the company has been functioning as a going concern, it is thus able to cover all the costs incurred with the revenues derived through such operations, hence there is no CIRP cost which remains unpaid. However, vide Affidavit dated 10.06.2021, the Resolution Applicant has undertaken to pay CIRP costs, if any. e. PAYMENT TERMS: f. MEANS OF FINANCE: SRA has already made a payment of Rs. 10 Lakhs as EMD and has also deposited Rs. 255 Lakhs + Rs. 86.75 Lakhs in an Escrow Account in lieu of performance bank guarantee. Further, CFM ARC Ltd. has submitted an undertaking to the RP, offering to pay Rs. 1,180 Lakhs towards the assignment of outstanding dues of Corporate Debtor in accordance with Resolution Plan. The remaining Rs. 255 Lakhs will be met....
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....ns of the Code and the Regulations. It is further submitted that the Resolution Applicant is not hit by the provisions of Section 29A of the Code. The Resolution Applicant has submitted an Affidavit dated 25.02.2020 confirming its eligibility in that regard. 5. 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 payment of CIRP cost in full and in priority from the fund to be infused by the SRA [Section 30(2)(a)]. B. Proposes to pay the Operational Creditors of the Corporate Debtor in priority over the Financial Creditor. [Section 30(2)(b)]. C. The Management of the affairs of the Corporate Debtor after approval of the Resolution Plan would be with the Resolution Applicant [Section 30(2)(c)]. D. The Plan also provides for implementation and supervision of the Resolution Plan as stated above [Section 30(2)(d)]. E. 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 [Section 30(2)(e)]. 6. The Resolution Plan is in compliance of Regulation 38 of ....
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....ver the Corporate Debtor with all its assets and liabilities as specified in the Resolution Plan subject to orders passed herein. As already indicated the Resolution Plan has been approved by the CoC with 100% voting. 10. In K. Sashidhar v. Indian Overseas Bank & Others (2019) 12 SCC 150) the Hon'ble Apex Court held that if the CoC had approved the Resolution Plan with requisite percent of voting share, then as per section 30(6) of the Code, it is imperative 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 ma....
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.... the Monitoring Committee or the new Management, as the case maybe, may approach the respective authorities and departments for such reliefs. The authorities concerned may favourably consider such applications as deemed proper under law, keeping in view the object of resolution of the Corporate Debtor as envisaged in the Code and various pronouncements of the Hon'ble Apex Court. d. The 'Transfer Date' shall be in accordance with the observation in para 4(c) (Supra). e. The Memorandum of Association (MoA) and Articles of Association (AoA) shall accordingly be amended and filed with the Registrar of Companies (RoC), concerned for information and record. The Resolution Applicant, for effective implementation of the Plan, shall obtain all necessary approvals, under any law for the time being in force, within such period as may be prescribed. f. Henceforth, no erstwhile creditors of the Corporate Debtor can claim anything other than the liabilities taken over by the Resolution Applicant. g. The moratorium under Section 14 of the Code shall cease to have effect from this date. h. The Applicant shall supervise the implementation of ....