TaxTMI 
TaxTMI 
2020 (3) TMI 1394
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.... Corporate Persons) Regulations, 2016 read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016 for approval of the Resolution Plan. 2. Facts of the case as evident from application and Form - H: (i) This Adjudicating Authority by Order dated 14.05.2019 admitted the TP No. 41/CTB/2019 for initiation of the Corporate Insolvency Resolution Process of the Corporate Debtor i.e. M/s. Odisha Slurry Pipeline Infrastructure Ltd. (ii) Mr. Ashish Chhawchharia was appointed as the Interim Resolution Professional and subsequently Committee of Creditors accepted him to continue as Resolution Professional of the Corporate Debtor. (iii) Public announcement was made dated 18.05.2019 in two newspapers one in English language i.e. Financial Express and another one in Hindi language i.e. Surya Prabha. (iv) On 07.06.2019, Committee of Creditors were formed. The 1st Committee of Creditor Meeting was held on 14.06.2019. In the said meeting the Interim Resolution Professional was resolved to be appointed as Resolution Professional. Further, two registered valuers were appointed i.e. Adroit Valuation Services Pvt. Ltd. and Kantikaramsey & Co. to ascertain f....
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....y Bank of America NA Mumbai, Guarantee No. GT115535/2019 dated 07.12.2019. 3. In the Resolution Plan, a summary of its total financial proposal under the Resolution Plan, are as under: - Particulars Amount (INR) Upfront Fund Infusion The aggregate of INR 23,599,691,373 and any additional sums which may be needed to (a) pay the Upfront OC Discharge Amount and (b) defray any Insolvency Resolution Process Costs and Standstill Period Costs, if the aggregate of such costs are in excess of INR 60,000,000.00 but only to the extent such additional costs are incurred by the consent of the Monitoring Committee in accordance with Section III (C) (5) (iii) (c). Insolvency Resolution Process Costs and Standstill Period Costs to be permanently settled, discharged, and extinguished in full and reduced to NIL by payment: An aggregate of (a) INR 60,000,000.00 and (b) any additional sums which may be needed to defray any Insolvency Resolution Process Costs and Standstill Period Costs, if the aggregate of such costs are in excess of the INR 60,000,000.00 (referred to in (a) above) but only to the extent such additional costs are incurred by the consent of the Monitoring Committee....
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....xtinguished in full and reduced to NIL by payment of: NIL 4. The Resolution Plan also contains mandatory contents as laid down under Section 30(2) of the Code and Regulation 38 of the CIRP Regulations. The details of the same are as below: - Sl. No. Section of the Code/Regulation No. Requirement with respect to Resolution Plan Clause of Resolution Plan 1. Section 30(2) The Resolution Plan: (a) Provides for the payment of Insolvency Resolution Process costs in priority to payment of all other debt of the Corporate Debtor; Section III (A) (ii) and Section III (A)(vii)(1) (b) Provides for the payment of the debts of operational creditors in the manner specified in Section 30(2) (b); Section III (A) (iii) (c) (c) Provides for the payment of the debts of dissenting Financial Creditors in the manner specified in Section 30(2) (b); Section III (A) (iii) (b) (4) (d) Provides for the management of the affairs of the Corporate Debtor after approval of the Resolution Plan; Section III (c) (e) Provides for the implementation and supervisions of the Resolution Plan;....
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....(i). 2 Payment of CIRP Costs. Section III (A) (ii) and Section III(A) (vii)(1). 3 Proposal for Financial Creditors. Section III (A) (iii) (b) and Section III (A) (vii) (3). 4 Proposal for Operational Creditors. Section III (A) (iii) (c) and Section III (A) (vii) (2). 5 Proposal for other creditors. Section III (A) (iii) (d) and Section III (A) (vii) (4) to (8). 6 Proposal for shareholders. Section III (A) (v) and Section III (A) (vii) (7). 7 Source of funds. Section III (A) (vi). 8 Implementation Plan. Section III (C) (1). 9 Acquisition Structure. Section III (C) (2). 10 Implementation Schedule and Key Steps. Section III (C) (3). 11 Monitoring Agent and Monitoring Committee. Section III (C) (5) (i) and (iii). 12 Board of Directors. Section III (C) (5) (ii). 13 Effective Date Actions. Section III (C) (6). 14 Prayers, reliefs, concessions, directions. Section VII(1). 6. In Section III (C) (3) (i) of the Resolution Plan, the Resolution Applicant has provided the timeline for implementation of the Resolution Plan, as set out below: Actions Timelines Plan Appr....
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.... (e) Direction on the Resolution Professional to take possession of the asset of the Corporate Debtor and take necessary steps to recover the outstanding user charges under the "Right to Use" Agreement from the user of the pipeline which is the only asset of the Corporate Debtor company; (f) In the alternative, an interim order directing the Resolution Professional from not to allow any third party to use the 253 KM pipeline, the only asset of the Corporate Debtor till such time the outstanding rental is paid under the "Right to Use " Agreement. (g) Interim order and/or orders restraining the Resolution Professional from taking any step and/or steps towards approval of any Resolution Plan in respect of the Corporate Debtor till disposal of the Applicant's C.A.N. No. 11760 of 2016 filed in F.M.A.T. No. 1310 of 2016 (SREI Infrastructure Finance Limited -Vs- OSPIL & Anr.) pending before the Hon'ble High court at Calcutta in connection with the Title Suit being T.S. No. 177 of 2016; In CA (IB) No. 12/CTB/2020 filed by Applicant i.e. SREI Infrastructure Finance Limited seeks the following prayers to be considered are as under: - (a) Al....
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.... has decided to settle the principal portion of all the secured and unsecured creditors as one class. This has caused great injustice to this applicant. Based on the outstanding claim amount admitted by the Resolution Professional, if you calculate it in percentage, the applicant will get only 58 % of the admitted amount. Whereas an unsecured creditor stands to gain 72 % of the admitted claim amount. This is discriminatory, blatant on the face of it. Further, the applicant is also aggrieved by the fact that he cannot continue the claim against the personal guarantors. This is highly discriminating, none of other Financial Creditors hold personal guarantee, such a move is grave injustice to this applicant. (vii) The applicant further submits the resolution plan is discriminatory in nature, failed to take the interest of all the stake holders. Further violates Section 30(2) of IBC Code, over looked basic pillar of IBC Code, being maximization of value of asset. Hence, seeks rejection. The applicant further submits that Corporate Debtor is entitled to receive 1300 crores from Essar Steel India Limited Resolution Applicant has not kept its commitment made under Essar Steel Ind....
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....Creditors is indeed "fair and equitable". (ix) The Counsel for Resolution Professional states that, assuming the SREI Infrastructure Finance Ltd. succeeds in Company Appeal (AT) (Insolvency) No. 1407/2019, and had an opportunity to participate in CoC. The voting share of this applicant would have been only 18%. There again assuming voted against the Resolution Plan, the Resolution Plan would have been approved with 82 % voting in favour of the Resolution Plan. Hence, this Resolution Plan is binding on all stakeholders. We accept the contention that participation of this applicant in CoC, would not have, in any way altered the outcome. (x) The applicant draws our attention to approved resolution plan of Essar Steel India Limited, approved by NCLT Ahmedabad. The said Plan is not before us nor part of this application. If the Successful Resolution Applicant takes over, many corporate bodies under resolutions, each plan is separate, and implementation is separate cannot be linked and compared on the basis that Resolution Applicant is one and the same. When Resolution Applicant take over Similar companies or companies of same group, certain advantageous/disadv....