TaxTMI 
TaxTMI 
2022 (1) TMI 1292
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.... underlying Company Petition in C.P. (IB) No. 1911/KB/2019 was filed by Ajit Kumar against Hail Tea Limited, the Corporate Debtor, under section 9 of the Insolvency and Bankruptcy Code, 2016, which was admitted vide order dated21.01.2020. 1.4. Initially, the Resolution Professional Mr. Madhur Agarwal (IBBI Reg. No. IBBI/IPA-001/IP-P00653/2017-2018/11127) was appointed as the Interim Resolution Professional (IRP). The Interim Resolution Professional was later confirmed as the Resolution Professional ("RP") of the Corporate Debtor vide order dated 25.11.2020. 1.5. During the pendency of the I.A. (IB) No.290/KB/2021, it was noted that the payment made to the Operational Creditors was not in equal proportion. Therefore, the successful Resolution Applicant ("SRA") filed an affidavit dated 27.07.2021, wherein the SRA proposed to make equal proportionate payments to the Operational Creditors. 1.6. The Resolution Professional requested the SRA to file a revised Resolution Plan. The SRA filed a revised the Resolution Plan from Pages 21 to 30, incorporating the change in the payment schedule for the Operational Creditors. The Resolution Professional forwarded the revised Resolution Plan t....
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.... in response to the 2nd invitation for EoI, five EoIs were received. Thereafter, till the extended last date of submission Resolution Plan i.e. 19.10.2020, the Resolution Professional submits that three resolution plans were received from viz. (i) Shubham Bidasaria; (ii) M Sharma and (iii) Giriraj Plantation (P) Ltd. 4.3. The Prospective Resolution Applicants were given time till 07.11.2020 to review and revise their resolution plans which was extended to 14.11.2020 at their requests and final Resolution Plans were submitted by all three Resolution Applicants. 4.4. On 05.12.2020, the Resolution Plans were discussed in the 8th CoC meeting. The Resolution Plans were put for evoting, the CoC upon due consideration approved the Resolution Plan of M. Sharma dated 03.11.2020, a partnership firm, with 100% voting share [Annexure F; Pages 63 to 65 of I.A] in the e-voting held on 09.12.2020 to 11.12.2020. 4.5. The RP issued the Letter of Intent [Annexure G; Pages 66 to 67 of I.A.] ("LoI") to the Resolution Applicant ("RA") on 15.12.2020. Subsequent to this, the RA furnished a performance security [Annexure C; Pages 12 to 16 of Supplementary Affidavit] amounting to Rs.25,00,000/(Rup....
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....roval of the Resolution Plan. Clause 3.6 at Page 27 of the Resolution Plan. d. Implementation and Supervision Clause 3.8 at Page 29 of the Resolution Plan. e. Plan does not contravene any of the provisions of the law for the time being in force. clause 4.5 at Page 35 of the Resolution Plan f. Conforms to such other requirements as may be specified by the Board. - II. Measures required for implementation of the Resolution Plan in terms of regulation 37 of CIRP Regulations: Particulars Relevant Page of the Revised Resolution Plan dealing with compliance with Regulation A resolution plan shall provide for the measures, as may be necessary, for insolvency resolution of the corporate debtor for maximization of value of its assets, including but not limited to the following: transfer of all or part of the assets of the corporate debtor to one or more persons; Not proposed by the Resolution Applicant. b. sale of all or part of the assets whether subject to any security interest or not; Not proposed by the Resolution Applicant. ba. restructuring of the corporate debtor, by way of merger, amalgamation and demerger Not proposed by the Resolution Applicant. c. the substan....
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....tributed to the failure of implementation of any other resolution plan approved by the Adjudicating Authority at any time in the past. Clause 4.9 at Page 40 of the Resolution Plan. 38(2) A resolution plan shall provide: a) the term of the plan and its implementation schedule; Clauses 3.7; 3.8 at Pages 28-29 of the Resolution Plan. b) the management and control of the business of the corporate debtor during its term; and Clause 3.6 Page 27 of the Resolution Plan. c) Adequate means for supervising its implementation. Clause 3.8 Page 29 of the Resolution Plan. 38(3) A resolution plan shall demonstrate that- a) it addresses the cause of default; Page 13 of the Resolution Plan. b) it is feasible and viable; Clause 3.7 at Page 28 of the Resolution Plan. c) it has provisions for its effective implementation; Clause 3.9 at Page 30 of the Resolution Plan. d) it has provisions for approvals required and the timeline for the same; and Not proposed by the Resolution Applicant e) the Resolution Applicant has the capability to implement the resolution plan. Clause 2.0 at Pages 15-20 of the Resolution Plan. 6. Details of Resolution Plan/Payment Schedule 7.....
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.... 2. Term of resolution plan in clause 3.7 at Page 28 of the Resolution Plan.; and 3. Implementation and Supervision of the resolution plan in clause 3.8 at Page 29 of the Resolution Plan. 10. The Reliefs, Exemptions and Waivers sought by the Resolution Applicant from the Adjudicating Authority are set out below for the successful implementation of the Resolution Plan. The orders there on are indicated against each. Waivers, Reliefs, and Exemptions sought under Clause 4.1 the Resolution Plan at page 31 Sl. No. Relinquishment/Waiver of Liabilities Orders thereon 1. All Corporate / Performance Guarantees issued by corporate debtor in favour of or on behalf of any of its subsidiaries, associates, group companies or any third party. Note: The resolution applicant has given up its claim on waivers of personal and corporate guarantees on behalf of corporate debtor vide its letter dated November 20, 2020 which is annexed to the application at pages68. Granted 2 All securities including Guarantees provided by Directors / Third Party on behalf of the CD Not granted. 3. All the dues of the corporate debtor to related parties Granted. 4. All the Contingent Liabilities of t....
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....ill be binding on the corporate debtor, and its employees, members, creditors, including the central and state government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims which are not a part of resolution plan shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim which is not part of the resolution plan. 11. On perusal of the documents, we find that the Public Announcement made on 25.01.2020 was published only in one English newspaper and in no newspaper of regional language. While the law clearly requires publication to be done in newspapers of English as well as regional language, we hold that there is no need to stall the resolution plan for such a detail and allow the same. 12. At page 39 of the resolution Plan, the Resolution applicant has been stated to be "ineligible", we understand and treat this as a typographical error and that the Resolution Applicant is otherwise eligible. However, the Resolution Applicant is requested to be more careful. 13. On hearing the submissions made by the Resolution....