2023 (4) TMI 217

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....r. Krishan Kumar, Advocates for R-3. ORDER Heard learned counsel for the Appellant as well as learned counsel appearing for the Respondent. This Appeal has been filed challenging order dated 06.02.2023 by which order the Adjudicating Authority has by separate order has disposed of I.A. No.314/(AHM)/2021 as well as I.A. No.431/(AHM)/2021. I.A. No. 314/(AHM)/2021 was filed by the Resolution Professional for approval of the Resolution Plan submitted by the Successful Resolution Applicant - MTC Business Pvt. Ltd. I.A. No. 431/(AHM)/2021 was filed by the Appellant raising objections to the Resolution Plan which too was rejected by separate order of the same date i.e. 06.02.2023. The Appellant before us is an Unsecured Financial Creditor who h....

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....trary to Section 30(2)(b) of the Insolvency and Bankruptcy Code, 2016. The Section 30(2)(b) of the Code requires that the Operational Creditors be paid at least the liquidation value and be treated fairly, Contrary to this, the Resolution Plan approved by the Committee of Creditors of the Corporate Debtor does not treat the operational creditors equitably and fairly as required by the mandate of the Code, 2016. 24. The Resolution Plan undermines the interest of the Operational Creditors. The Resolution Plan provides for payment of Rs.365.85 Crores to the secured financial creditors as against the admitted claim of Rs.1696.82 crore, while the application against the Resolution Professional for having rejected the claims are still pending ....

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....nce security as required by Regulation 39 (4) of the Regulations, 2016. In fact the LA filed before this Hon'ble Tribunal seeking approval of Resolution Plan states that performance security provided. However, only certificate in Form- H is filed and no evidence of performance security is provided."" 2. Learned counsel for the Appellant challenging the order submits that the objections with regard to partial rejection of the claim of the Appellant and other creditors being pending before the Adjudicating Authority, the plan ought not to have been approved. It is further submitted that there has been several material have come in to light which indicate that the Asset Reconstruction Company is a fraudulent company which is involved in ....

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....ry provision including provision of Section 30 Sub-section (2) of the I&B Code. 6. One of the submission which has been raised by learned counsel for the Appellant is that very limited amount has been paid to the Appellant and other creditors that comes to 0.0969% of the admitted claim. 7. Present is not a case that it is contended that payment to the other creditors/ Operational Creditors is less than the liquidation value. The allocation in the plan to the creditors can be questioned when the plan value earmarked for them is less than the liquidation value. Mere allocation of meagre amount cannot be a ground to question the resolution plan. 8. It is also submitted by learned counsel for the Appellant that several cases against the 'Rar....