Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

2019 (8) TMI 1785

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n ground that the Company was in position to pay the various debts to Financial Creditors amounting to Rs. 29,00,00,000/- 2. This Adjudicating Authority by order dated 31.08.2018 admitted the Corporate Person in CIRP Moratorium under Section 14 of Insolvency and Bankruptcy Code, 2016 was issued. One Mr. Ram Ratan Modi was appointed as Interim Resolution Professional (in short "IRP"). The IRP made public announcement of CIRP of the Corporate Debtor and called its creditors to submit the claims. He received claims from two public sector banks and one Non Banking Financial Company. He alloted the vote matrix to them based on their debts in following manner:- (i) Canara Bank- 24.30% (ii) North Eastern Development Finance Corporation Ltd. -....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....80% of the assets of the Corporate Debtor as a security as per their debt. Hence, they are entitled to have equivalent share in distribution of the resolution funds. However, the CoC approved the resolution plan of M/s Jagannath Financial Advisory Private Limited by 75.70% of votes. 4. The RP filed application being CA(IB)No.709/KB/2019 under Section 31 of Insolvency and Bankruptcy Code before this Authority for approval of the resolution plan of M/s Jagannath Financial Advisory Private Limited. 5. The Canara Bank filed affidavit in opposition raising same plea that the distributionof the resolution funds is improper. They must get due share considering the fact that they hold 80% of the assets of the Corporate Debtor as security. 6. We ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s case, there are some Operational Creditors but no provision is made to pay any sum in view of Section 53 of Insolvency and Bankruptcy Code, 2016. All Financial Creditors are equally treated while distributing funds. 9. In case of K. Sashidhar Vs. Indian Overseas Bank Limited (Civil Appeal No. 10673 of 2018), the Hon''ble Apex Court hold that, "the legislature has not endowed on the Adjudicating Authority (NCLT) with the jurisdiction or authority to analyse or evaluate commercial decision of CoC which lies to enquire into the justness of the rejection of resolution plan by descending financial creditors." 10. In short it is held that this Authority cannot sit in appeal against the financial decisions that are taken by CoC, In our conside....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion and implementation of the plan. Provision is also made to pay resolution costs. The resolution fund appears to be equally distributed among all the Financial Creditors giving them equal share i.e. 23.43%. RP has certified the plan and compliance Certificate is produced as Annexure-F. The affidavit of resolution applicant is also produced stating that they are not disqualified under Section 25A of Insolvency and Bankruptcy Code, 2016. 15. Perusal of plan shows that it does not contravene any provision of law time being in force and it complies all requirement of Insolvency and Bankruptcy Board of India (in short "IBBI"). In view of this, we accept and approve resolution plan of M/s Jagannath Financial Advisory Private Limited. We pass t....