TaxTMI 
TaxTMI 
2019 (4) TMI 2044
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....nction of the Resolution Plan which has been accepted by the Committee of Creditors on 21.07.2018. 2. Briefly adverting to the facts of the case, a petition filled by an Operational Creditor, Mr. Nitin Gupta, was admitted by this adjudicating authority vide its order dated 26.10.2017, initiating the Corporate Insolvency Resolution Process of the Corporate Debtor viz. Applied Electro Magnetics Pvt. Ltd. (hereinafter referred to as AEM) under Section 9 of the Code. Mr. Naveen Kumar Jain was appointed as the Interim Resolution Professional by the Adjudicating Authority who took charge on 18.11.2017. Compliances, as required under the Code were made by him. After convening the first COC on 22.12.2017, the decision to name the Resolution Prof....
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....lan as approved by the COC meets the requirements of sub-section (2) of Section 30 and all other regulations as mandated under the Code. 4. A brief overview of the plan and its salient features are : - (1) The Corporate Debtor is engaged in designing and manufacturing of customised solutions for a broad range of electronic/IT applications in the field of data and digital voice communication. (2) The resolution applicant, SM Milkose Ltd., is a public ltd. company engaged in the manufacture of Ghee and Skimmed Milk powder. It has a consolidated turnover of approx. Rs. 70.68 crores and its net worth is Rs. 18.31 crore as per its audited balance sheet as on 3191 March, 2017. The group is headed by Mr. Sharad Maheshwari who ....
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....lities 564.51 3. Shareholders 2.00 Total liabilities 6850.89 5. (a) As submitted, the Resolution Plan, as proposed, provides for infusion of working capital requirement of Rs. 5 crores which shall be financed out of the sale proceeds of the assets of the Corporate Debtor. In addition, a sum of Rs. 12.99 crores is proposed to be paid in full and final settlement by the resolution applicant in respect of all past dues and liabilities of the Corporate Debtor. It would be relevant to note that the fair value as well as the Liquidation value of the assets of the company have been assessed at Rs. 9.6 crores and Rs. 6.1 crores respectively. (b) The Resolution Applicant along with its ....
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....timated amount of IRP Costs as assumed under Schedule 8 (Financial Plan) and Appendix II of the plan, the Resolution Applicant will be entitled to offset such increase against the other amounts payable under this Plan as set out in Schedule 8 (Financial Plan). b. Secured Financial Creditor: There is only one Secured Financial Creditor who has been treated as Consenting Secured Financial Creditor. They shall be paid a sum of Rs. 9.00 crores out of their admitted claim (without any interest) set out in Schedule 8 (Financial Plan) towards full and final settlement of their claims. c. Workmen and Employees: The Workmen and Employees of Corporate Debtor shall be paid the amounts in the manner set out in Schedule 8 (Financial Plan)....
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....at the Resolution Applicant and the Resolution Professional shall ensure the implementation of the plan till the effective date. Further, i. The Resolution Professional shall hold all such payments (except for the Operational creditors payments) in trust for the benefit of the respective class of creditors on whose behalf it has received such payments; ii. The Resolution Professional shall promptly make all distributions to such class of creditors; iii. The Resolution Professional alone shall be responsible for the allocation and distribution of such amounts to such class of creditors; and iv. The obligation of the Resolution Applicant shall stand satisfied upon payment of such amounts to the previousl....
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....0(2) of the Code 12. On-going through the plan, and in terms of Section 31 of the Code this Bench is satisfied that the resolution plan as unanimously approved by the Committee of Creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30. In view of the same, there is no legal impediment in confirming the same by this Adjudicating Authority. We accordingly endorse and approve the same. The resolution plan shall be binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan. We further declare that the moratorium imposed upon the assets of the Corporate Debtor shall cease to have any effect in terms of....