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TaxTMI 
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2022 (9) TMI 16
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.... Persons) Regulations, 2016 ('Regulations') on behalf of the Resolution Professional (RP), seeking approval of the Resolution Plan. 2. The facts as averred by the applicant in the application are stated in brief as follow: a) The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, M/s. DHSL Textiles (India) Ltd., vide order dated 04.10.2021 passed by this Adjudicating Authority, pursuant to an application filed by M/s. Reliable Finance Corporation Private Limited, under Section 9 of the Code and Mr. Mohd Nazim Khan was appointed as Interim Resolution Professional. b) The applicant carried out a public announcement of initiation of CIRP on 06.10.2021. After collation of clai....
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....cants namely, Legend Infoways Private Limited g) The applicant in compliance of Regulation 36A(12) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulation, 2016, had issued the final list of Prospective Resolution Applicants on 05.01.2022. h) Further, in third meeting of the COC was held on 07.02.2022, wherein the facts regarding dishonour of cheque and after detailed discussion held between the Applicant and COC members, it was decided by the COC members to allow and enable the sole Resolution Applicant to redeposit the bid amount of INR 1,00,000. Further, it is submitted that the COC members also agreed not to open sealed Resolution Plan till the date of credit of ....
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....m to confirm that each Resolution Plan- (a) provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the payment of other debts of the corporate debtor; (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 priority in sub-section (1) of section 53, whichever is higher,....
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....sions of the law for the time being in force (f) conforms to such other requirements as may be specified by the Board. Explanation. --For the purposes of clause (e), if any approval of shareholders is required under the Companies Act, 2013 (18 of 2013) or any other law for the time being in force for the implementation of actions under the Resolution Plan, such approval shall be deemed to have been given and it shall not be a contravention of that Act or law.]" 4. Further, as per Regulation 38 of the CIRP Regulations, a Resolution Plan is required to contain a statement how it will deal with the interest of all the stakeholders including Financial Creditors and the Operational Creditors and if these are sufficiently pro....
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....er of the management of the affairs and control of the business of the Corporate Debtor has been provided in Clause 5.1 to 5.8 of the Resolution Plan. 9. As regards compliance of clause (d) of Section 30(2) of the Code, it is seen that clause 4.22 of the Resolution Plan provide for the supervising and monitoring of the implementation of the resolution plan. 10. As regards compliance of clause (e) and clause (f) of Section 30(2) of the Code, the successful resolution applicant has submitted declaration under Section 30(2)(e) and Section 30(2)(f) of the Code affirming that the Resolution Plan does not contravene any of the provisions of the law and conforms to such other requirements as may be specified by the Board. 11. As per Regul....
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....ority of such creditors to be the best resolution plan, which is finally accepted after negotiation of its terms by such Committee with prospective resolution applicants." 15. Therefore, in our considered view, there is no impediment in giving approval to the Resolution Plan. Accordingly, we hereby approve the Resolution Plan, which is approved by the CoC i.e., by 98.61% voting. 16. Resultantly, the present IA No. 1219/ND/2020 is hereby allowed with the following directions: i. It is clarified that Section 30(2)(f) of the Code mandates that the Resolution Plan should not be against any provisions of the existing law. The Resolution applicant therefore, shall adhere to all the applicable laws for the time being in force under ....