TaxTMI 
TaxTMI 
TaxTMI 
2021 (10) TMI 1036
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....n 7 of the Code for initiating Corporate Insolvency Resolution Process of M/S Fedders Electric & Engineering Limited/Corporate Debtor. This Tribunal vide order dated 14.08.2019 admitted the application and appointed Mr. Ashok Kumar Gulla as the Interim Resolution Professional (IRP) with necessary directions and to file regular reports of events. The Interim Resolution Professional made a public announcement in Form A as prescribed under Regulation 6 (1) of the Regulations for intimation of commencement of Corporate Insolvency Resolution Process of the Corporate Debtor and for inviting claims from the creditors of the Corporate Debtor along with the proof in the prescribed format. 3. The IRP further collated the claims received and constituted the CoC which comprises of State Bank of India, Punjab National Bank, Axis Bank, Central Bank of India, Karnataka Bank, ICICI Bank, Standard Chartered Bank and Toyota Financial Services Pvt. Ltd. Thereafter in the first meeting of the CoC the appointment of the IRP was confirmed as the Resolution Professional of the Corporate Debtor. 4. It is stated that on 23.12.2020, due to unsuccessful attempts of resolution of the corporate debtor, in th....
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....Guarantee (for brevity 'PBG') as per the Request for Resolution Plan (for brevity 'RFRP'). But on 25.03.2021, Shiva Consultants Private Limited informed the Resolution Professional that they shall provide the performance Security of INR 1.00 Crore, if Plan is approved by the CoC till the NCLT approved date and that amount shall be adjusted in the upfront payment amount as mentioned in the Resolution Plan submitted by them. 9. Thereafter 91.10% members in voting share of CoC did not agree to consider the request of Shiva consultants Private Limited with regard to reduction in performance security amount. It was determined that the Resolution Plan submitted by M/s. Shiva Consultants Pvt. Ltd. does not fulfill the conditions laid down in the RFRP, therefore the same is not eligible to be placed before members of CoC for approval. It was further concluded that only one Resolution Plan would be put up for approval before the CoC through e-voting. 10. Though in view of uncertainty of the approval of the Resolution plan, the COC in its 24th meeting held on 12.03.2021 has also considered the probability of liquidation and discussed the same. It is further stated that IM+ ....
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....l Resolution Applicant, which was executed on 23.06.2021 and in terms of the RFRP, on 23.06.2021, the Successful Resolution Applicant submitted a performance bank guarantee of the amount of INR, 9,65,00,000/-. It is further stated that as far as the valuation is concerned, as discussed with the members of CoC in the 13th meeting of CoC held on 19.08.2021, it is submitted that in terms of the inputs provided by the Registered Valuers, there has been an impact on account of the Covid-19 Pandemic in the Fair Value and Liquidation Value of the Corporate Debtor. Based on the valuation reports submitted in March 2020, the average fair value of the corporate debtor was Rs. 206.68 crores and as per the report of June 2020 considering the Covid-19 impact, the average fair value has been reduced to Rs. 175.68 Crores and the average liquidation value of the corporate debtor as per the valuation reports submitted in March 2020 was Rs. 133.05 crores which was also reduced to Rs. 113.09 crores based on the valuation report submitted in June 2020. 14. It is further submitted that the Resolution Professional has verified the contents of the Approved Resolution Plan and has confirmed that the Appr....
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....n as proposed by resolution applicant. Section 30(2)(c) of IBC, 2016 and Section 30 (2)(d) (e) of IBC, 2016 The Financial creditors namely Punjab National Bank, Central Bank of India, ICICI Bank and Toyota Financial Services Pvt. Ltd who did not approve the plan will be paid to the extent of the amount to be paid to such creditors in accordance with Sec 53(1) of the Code in event of liquidation of the corporate debtor. A committee consisting of One Representative of the Financial creditors, one representative of Successful Resolution Applicant and the Resolution professional shall manage the corporate debtor during the implementation of Resolution Plan. Section 30(2)(f) of IBC, 2016 The Resolution Plan does not contravene any of the provisions of law for the time being in force. Section 30(4) of IBC, 2016 The members of COC in its 24th meeting of COC held on 19.03.2021 approved the resolution plan with 74.61% of voting share. 17. The resolution plan is for the amount of Rs. 96.50 crores, which is to be paid in 150 days from the date of approval of Resolution Plan by this Adjudicating Authority and al....