TaxTMI 
TaxTMI 
2022 (7) TMI 356
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rajasekhar V.K. : Member (Judicial) And Shri Balraj Joshi : Member (Technical) For the Petitioner : Ms. Manju Bhuteria, Advocate Mr. V. Kedia, Advocate For Respondent No. 1 : Mr. Deep Roy, Advocate Mr. Kataini Gurav, Advocate For Respondent No. 9 : Mr. Aritra Bose, Advocate Mr. Piyush Agarwal, Advocate Ms. Ranjabati Ray, Advocate ORDER Rajasekhar V.K., Member (Judicial) 1. This Court convened through video conferencing. 2. I.A. (IB) No. 644/KB/2021 has been filed by Kotak Mahindra Bank under section 60(5) of the Insolvency and Bankruptcy Code, 2016 ("Code") seeking the following reliefs: a. Direct the Resolution Professional to rework the distribution pattern so as to implement the provisions of amended section....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ors ("CoC"). Pursuant to the invitations for Expression of Interest ("EoI") issued by the Respondent No. 1, four prospective Resolution Applicants filed Resolution Plans. 3.6.The Respondent No. 1 determined the Liquidation value of the Corporate Applicant as Rs.615,00,00,000/- (Rupees Six Hundred and Fifteen Crore only). As per the Liquidation Value, the Applicant was entitled to Rs.1,44,00,000/- (Rupees One Crore Forty-Four Lakh only) 3.7.The Applicant objected to the distribution methodology as per the security interest as the Applicant was entitled to receive Rs.3,88,00,000/- (Rupees Three Crore Eighty-Eight Lakh only) as per the voting share. 3.8.On 02 March 2019, the Resolution Plan submitted by the consortium of SS Natural Re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uidation value, such amount cannot be considered as liquidation amount. 3.14. The distribution to the dissenting Financial Creditor should be done in accordance with section 30(2) of the Code. The said provision is applicable to the present case as the Resolution Plan was approved by the 04 September 2019 and the appeal was dismissed on 04 March 2021. 3.15. The Applicant vide email dated 25 September 2019 requested the Respondent No. 1 to consider the distribution in light of the amended section 30(2) of the Code. The Respondent No. 1 called upon his process advisors on 25 September 2019 to re-work the distribution pattern but the process advisors vide email dated 24 December 2019 refused to rework the distribution process as the matt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ern was merely to distribute the proposed amount under the Resolution Plan and did not provide for reduction of the liquidation value. 4.6.At the time of finalisation of the distribution pattern and the conclusion of e-voting by the CoC i.e. 16 March 2019, the Insolvency and Bankruptcy Code (Amendment) Act, 2019 was not in force. It came into effect from 05 August 2019 which stipulated that the dissenting financial creditors would be at least paid the amount that they would have received in case of liquidation of the Corporate Debtor in accordance with section 53(1) of the Code. Hence, the distribution method approved by the CoC did not factor in any different treatment to any dissenting Financial Creditor. 4.7.This Adjudicating Autho....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Description Date 1. Approval of Resolution Plan by the CoC 16 March 2019 2. Approval of Resolution Plan by the Adjudicating Authority 04 September 2019 3. Approval of Resolution Plan by the Hon'ble NCLAT 04 arch 2021 5.4.Hence, it is clear that the provision in Explanation 2 of section 30(2) (b) of the Code, shall apply to the Resolution Plan of Ramsarup Industries Limited as the Resolution Plan was still under the consideration of the Adjudicating Authority when the Insolvency and Bankruptcy Code (Amendment) Act, 2019 came into force. The Applicant had emailed the Resolution Professional on various occasions requesting the Resolution Professional to revise the distribution methodology. 5.5.But the qu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the order forthwith to all the parties and their Ld. Counsel for information and for taking necessary steps. 8. Certified Copy of this order may be issued, if applied for, upon compliance of all requisite formalities 9. File be consigned to the records. Order pronounced on the 28 day of June 2022. ^1 [(b) provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than- (i) the amount to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or (ii) the amount that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of p....