TaxTMI 
TaxTMI 
2019 (1) TMI 1959
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....l/revised Resolution Plan dated 05.11.2018 submitted by Tri-county Premier Hearing Services Inc, Resolution Applicant (RA). 2. The C.P. (I.B.) No. 1283/I&BP/NCLT/MAH/2017 was filed by Axis Bank Limited under section 7 of IBC for initiation of Corporate Insolvency Resolution Process (CIRP) against BSR Diagnostic Limited, Corporate Debtor. The Petition was admitted by this Tribunal vide order dated 29.09.2017. The Committee of Creditors (CoC) confirmed the appointment of the Interim Resolution Professional Mr. Sundaresh Bhat as Resolution Professional (RP) in their meeting held on 03.11.2017. The 180 days' period for CIRP was further extended by this Tribunal for another 90 days (w.e.f. 29.03.2018) vide an order dated 12.03.2018. 3. The RP Published advertisement inviting Expression of Interest (EOI) on 07.12.2017 and a subsequent addendum for extension of last date for submission of EOI on 22.12.2017. The RP received EOI from six entities of which three filed their resolution plan. In the 6th CoC meeting, held on 22.06.2018, only Resolution Plan of Tri-county Premier Hearing Services Inc, dated 21.06.2018, was voted and the rest two plans were rejected by the CoC. The resoluti....
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....Plan (Rs.crore) Remarks/Sources of funds 1. Secured Financial Creditor 106.26 45 Payment Methodology: Upfront Cash Payment Rs.12 Cr within 60 Days from the date of order of Hon'ble NCLT Tranche 1 Rs.26 Cr by 31.03.2019 without any interest. Tranche 2 Rs.3 Cr. by 31.03.2020 with an interest of 8% p.a. (Interest on reducing balance from April 2019) Tranche 3 Rs.4 Cr. by 31.03.2021 with an interest of 8% p.a. (Interest on reducing balance from April 2019) Total Rs.45 Cr. Sources of funds: Equity infusion Rs.19 Cr. To be sourced from Resolution Applicants' own funds. Long term Loan Rs.2.50 Cr. To be sourced from Resolution Applicants' own funds NBFC Rs.15 Cr. In principle sanction available of Rs.35.00 crores from NBFC, Shanky Financial Service Private Limited. Internal Accrual Rs.8.50 Cr To be sourced from internal accruals. Total Rs.45 Cr. 2. Payment to Unsecured Financial 43.80 0.44 The Resolution Applicant proposes to settle the total outstanding claim of the Unsecured Financial Creditors at 1% of the cla....
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.... Services INC is Rs.65 crore. 4. Unsecured Loan from NBFC 15.00 In principle sanction is available of Rs.35.00 Crores from NBFC, Shanky Financial Service Private Limited. 5. Internal Accruals 25.52 After infusion of Rs.11 crore as Resurrection Cost/Promoter's infusion. Total 67.02 10. The Resolution applicant has stated in the Plan that it has dealt with the interest of all the stakeholders of the Corporate Debtor. The Resolution Plan provides the following information with regard to the interest of various stakeholders: Sr. No. Category of Stakeholder Amount Claimed (Rs.crore) Amount Admitted (Rs.crore) Amount provided in Plan (Rs.crore) Amount provided to Amount claimed (approx.%) 1. Secured Financial Creditor 106.35 106.26 45 42 2. Un-secured Financial Creditor 43.80 43.80 0.44 1 3. Operational Creditor 18.17 20.23 1.01 5 4. Government Dues 2.95 2.95 0.51 17 5. Workmen/ Employees 1.65 1.53 1.36 82 6. Related Party Creditors 14.13 14.13 Nil 0 11. The Operational Creditors are being paid more tha....
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....e under section 29A of IBC. The required affidavits of RA, Medium Healthcare Consulting Private Limited and Geeta Diagnostic Centre were submitted to the CoC at the Eight meeting. 17. With regard to section 30 (2), the RP vide its letter dated 12.11.2018 submitted its Certificate to CoC stating that the plan is in compliance as required under section 30(2) as follows: Section 30 (2) clause Whether the Resolution Plan: Clause of Resolution Plan (a) Provides for the payment of insolvency resolution process costs? As per Clause 7(3) of the Plan the Resolution Applicant has specified that the IRP Cost shall be paid in priority to all other debts. As per Clause 8.2 of the Plan, IRP cost is specified as Rs.4.25 crore. It is further undertaken that the actual CIRP cost, as ratified by CoC will be paid within thirty business days from the effective date. (b) Provides for the payment or the debts of Operational Creditors? Operational Creditors: Admitted claim - Rs. 20.83 crores Liquidation value - NIL Payment as full and final settlement Rs.1.01 crores (upfront payment) Employee/Workmen Dues: The Plan proposes ....
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....e Effective date, the Company shall appoint a "Monitoring Agency" constituting of two representative of the Secured Financial Creditors, one of Resolution Applicant and one of Resolution Professional to monitor and supervise the implementation of the Resolution plan. 21. This bench directs that the Monitoring Agency shall constitute one representative each of Axis Bank Limited and State Bank of India and one representative of the Resolution Professional. 22. The Resolution Applicant is allowed to remove and/or substitute the Monitoring Agency with prior approval of this Adjudicating Authority if the Monitoring Agency is unable to satisfactorily perform its responsibilities or breaches terms of its appointment. 23. The Plan seeks approval of this Tribunal to the effect that post the approval of the resolution plan by this Tribunal, no re-assessment/revision or any other proceedings under the provisions of the Income Tax Act or any other statutory Act should be initiated on the Company in relation to period prior to acquisition of control by the RA and any consequential demand should be considered non-existing and as not payable by the Company. Any proceedings which were kep....
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....l not be liable to make any payment of any nature whatsoever, including but not limited to any penalty which may arise on account of termination of any existing agreements. This Bench is of the view that the RA has all the rights to either continue or terminate the existing agreements of the Company but only as per applicable laws and this bench would not extend any exemption from liability under any Law. 29. The aforesaid relief is very vague as the agreements in respect of which the RA seeks the relief are not identified. Therefore, this bench is not inclined to grant any such relief in which the subject is not identified and the relief sought is vague and general. 30. This and any other such relief if sought for in the Resolution Plan, where the contract/agreement/understanding/proceedings/ actions/notice etc. is not specifically identified or are for future and/or contingent liabilities are hereby rejected. 31. We shall clarify here that any resolution applicant shall overtake the Corporate Debtor with all its assets and liabilities. If any relief with respect to any identified liability of the Corporate Debtor is required, then that needs to be clearly mentioned and s....