TaxTMI 
TaxTMI 
2020 (3) TMI 1461
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.... 31 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the Code) read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as the Regulations) seeking sanction of resolution plan as approved in the meeting of Committee of Creditors (CoC) held on 20.07.2019. 2. It has been submitted that the insolvency petition was filed by the Operational Creditor i.e. Bhagwati Kripa Paper Mills Pvt. Ltd. under Section 9 of the Code for initiation of Corporate Insolvency Resolution Process (CIRP) in the case of M/s A.P. Enterprises Pvt. Ltd. (Corporate Debtor) and the same was admitted vide order dated 13.11.2018 and the CIRP of the Corporate Debtor was initiated. It is submitted that the Mr. Somnath Gupta was appointed as Interim Resolution Professional (IRP) vide order dated13.11.2018 and within two days of the appointment order, the IRP issued a public announcement as per Regulation 6 of the Regulations read with Section 15 of the Code in Form A in two newspapers i.e. The Financial Express, an English newspaper dated 17.11.2018 and Jan Satta (Hindi) thereby in....
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.... 4,01,000 3,25,000 4,03,847 3,35,345 Surender Kumar Kansal 4,06,694 3,45,690 Krishan Kumar Goel 0 0 Surender Kumar Kansal Krishan Kumar Goel 0 0 Surender Kumar Kansal Financial Assets Crest Capital Do 22,54,51,352 8,49,02,853 23,01,40,023 7,99,31,539 Rajkamal Saraogi 23,48,28,694 7,49,60,225 Total 31,44,37,501 14,45,16,596 5. It is stated that further more claims were received pursuant to publication of Form A and the shares of the members of CoC after incorporating all the claims of all creditors is as follows:- S. No. Name of the Creditors Amount of Claim Amount of claim admitted Voting %age 1 Kotak Mahindra Bank Ltd. 19,09,07,445.00 19,09,07,445.00 84.32 2 RBL Bank 9,51,486.00 9,51,486.00 0.42 3 ICICI Bank Loan (Consolidated amount) 80,40,104.00 80,40,104.00 3.55 4 IDFC Capital First 6,82,111.00 6,82,111.00 0.30 5 Edelweiss Retail Finance Ltd 14,09,159.00 0.62 6 Magma Fincorp Ltd 5....
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.... plan was placed before the COC in the 5 th meeting dated 03.05.2019 and was further analysed in 7th and 8th meeting of the CoC held on 01.07.2019 and 17.07.2019 respectively. 13. It is submitted in the 9th meeting of CoC held on 20.07.2019, the resolution plan after incorporating the suggestions of the Members of CoC, was presented and got approved by 95.30% voting in favour of it and 0.72% voted against it. Copy of the complete resolution plan is at Annexure 1 of the application. 14. It is also submitted that CoC while accepting the bid had taken care of all the provisions and Regulations. It is prayed that the application may be allowed and resolution as approved by the CoC in the CIRP of the Corporate Debtor be approved. 15. The learned counsel for the RP submitted that as per the Revised Form H dated 20.01.2020 filed vide Diary No. 509 dated 20.01.2020, all the provisions of the Code and Regulations were complied with and that the approval of the resolution plan was made by 95.30 % voting share of the financial creditors in the meeting of the CoC held on 20.07.2019 and therefore, resolution plan submitted by Mr. Narinder Garg, Mrs Manju Garg & Mr. Shiv Garg jointly ma....
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.... CoC as per the provisions of Section 21 of the Code. The details of the financial creditor, the distribution of voting share among them and the position of voting for the resolution plan is as under (para No.5 of Revised Form H dated 20.01.2020):- Sl No. Name of Financial Creditor Voting Share % Assent/ Dissent 1 Kotak Mahindra Bank Ltd 84.32 Assent 2 RBL Bank, 0.42 Dissent 3 ICICI Bank Car Loan (Consolidated amount ) 3.55 Assent 4 IDFC First Bank Ltd (Capital First Ltd amalgamated with IDFC Bank Ltd) 0.30 Dissent 5 Edelweiss Retail Finance Ltd 0.62 Absent 6 Magma Fincorp Ltd - 05.3.16 0.25 Absent 7 Religare Finvest Ltd 0.58 Assent 8 Tata Capital Financial Services Ltd 0.22 Assent 9 Tata Capital Housing Finance Ltd 3.11 Absent 10 Aashriya Capital & Financial Services Pvt Ltd 6.62 Assent Total 100.00 All the above financial creditors including the dissenting financial creditors are proposed to be paid in full with interest. 21. The details of stakeholders under the resolution plan given in Para 7 of Revised Form H dated ....
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....Resolution Applicant has submitted an affidavit stating that it is eligible? Affidavit dated 19.07.2019 Yes Section 30(2) Whether the Resolution Plan: (a) provides for the payment of insolvency resolution process costs? Clause 4.3C i Refer Page 57 of Paperbook Yes (b) provides for the payment of the debts of operational creditors? Clause 4.3C iv Refer Page 61 of Paperbook Yes (c) provides for the management of the affairs of the Corporate debtor? Clause 4.3G Refer Page 72 of Paperbook Yes (d) provides for the implementation and supervision of the resolution plan? Clause 4.3H Refer Page 72 of Paperbook Yes (e) contravenes any of the provisions of the law for the time being in force? Clause IV Declaration Refer Page 31 of Paperbook No Section 30(4) Whether the Resolution Plan (a) is feasible and viable, according to the CoC? Recorded in the minutes of 8th CoC meeting Yes (b) has been approved by the CoC with 66% voting share? Recorded in the minutes of 9th CoC meeting Yes Section 31(1) Whether the Resolution Plan has provisions for its effective implementatio....
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.... No such application filed NA 86[Reg 39(4) Provide details of performance security received, as referred to in sub-regulation (4A) of regulation 36B.] Clause 4.3B ii Refer Page 64 of Paper book Yes 23. The approval of the resolution plan has been sought under Section 31 (1) of the Code, reading as follows:- If the Adjudicating Authority is satisfied that the resolution plan as 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, it shall by order approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force such as authorities to whom statutory dues are owed, guarantors and other stakeholders involved in the resolution plan. Provided that the Adjudicating Authority shall, before passing an order for approval of resolution plan under this sub-section, satisfy that the resolution plan has provisions for its effective implementatio....
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....orate debtor- - (i) where a resolution plan has not been approved or rejected by the Adjudicating Authority; (ii) where an appeal has been preferred under section 61 or section 62 or such an appeal is not time barred under any provision of law for the time being in force; or (iii) where a legal proceeding has been initiated in any court against the decision of the Adjudicating Authority in respect of a resolution plan;]" (c) provides for the management of the affairs of the Corporate debtor after approval of the resolution plan; (d) the implementation and supervision of the resolution plan; (e) does not contravene any of the provisions of the law for the time being in force; (f) confirms to such other requirements as may be specified by the Board. 27. The compliance of Section 30(2) of the Code is given in para No.9 of Form H (supra). The same is being further examined as under:- (a) Section 30(2)(a): The resolution plan (page 57 of the application and Clause 4.3C i of the Resolution Plan) states that payment of insolvency resolution process cost estimated to be Rs.16,00,000/- shall be p....
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...., Section 30(2)(b) stands complied with. (c) Section 30(2)(c): In Clause 4.3 G of the resolution plan (page 72 of the application), it is stated that the management and control of the business of the Corporate Debtor during the term of the resolution plan will be with the Resolution Applicant. It is also stated that that there is no change in the Directorship and Shareholding of the Corporate Debtor. (d) Section 30(2)(d): In Clause 4.3 H of the Resolution Plan (Page 72 of the application), it is stated that the supervision of the resolution plan as finally approved by the Adjudicating Authority is proposed to be done by the Resolution Professional for the entire period of its implementation. (e) Section 30(2) (e): In Clause IV, Point 5 (Page No.31 of the application), it is stated that the resolution plan does not contravene any of the provisions of the law for the time being in force. 28. We are now examining the compliance of the proviso to Section 31(1) of the Code that the resolution plan has provisions for its effective implementation. The resolution plan states that the supervision of the resolution plan as finally approved by the Adjudicating Au....