TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 1312
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....e corporate debtor without any additional/further liability approved by the Hon'ble Tribunal etc.,. 2. Brief facts of the case, which are relevant to the issue in question, are as follows: (1) C.P. (IB) No. 315/BB/2019 is filed by M/s. Manjushree Travels ('Petitioner') U/s 9 of 1&B Code, 2016, was admitted by the Adjudicating Authority, vide Order dated 02°4 March 2020 by initiating Corporate Insolvency Resolution Process (CIRP) in respect of the Corporate Debtor i.e. M/s. V3 Engineers Private Limited, appointing the Applicant as IRP, imposing moratorium, etc. (2) In Pursuant to Section 15 of I & B Code, R/w Regulation 6 of the CIRP Regulations, 2016, the IRP made Public Announcement on 8th March 2020 in Form A published in Financial Express (English) in Samyuktha Karnataka (Kannada) intimating to the Creditors regarding initiation of CIRP and to receive the claims within the prescribed time limit as prescribed under the provisions of the code. Further pursuant to Section 21 (1) of the code, the Applicant constituted Committee of Creditors (COC) consisting 2 (two) Operational Creditors asunder: Sl. No. Name of Operational Creditor Address Status Amt in Rs.....
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....r. Sanjay Punglia on 2nd July 2020 and M/s. V3 Interiors Private Limited on July 2020. The provisional list of two prospective resolution applicants was issued on 8111 July 2020. Further 5 (five) days time was provided to raise any objections, however no objections was received by the Applicant, therefore the final list of two prospective resolution applicants viz., Mr. Sanjay Punglia and M/s. V3 Interiors Pvt. Limited., was issued on 15% July 2020. Subsequently, V3 Interiors Private Limited withdrawn the Expression of Interest and Mr. Sanjay Punglia along with co-applicants submitted the resolution plan for revival of the Corporate Debtor. (7) At the 3° meeting of COC held on 21% August 2020 through Video Conferencing, the COC members perused the resolution plan and members constituting 100% of voting share approved the resolution plan submitted by Mr. Sanjay Punglia along with co-applicants viz., Mr. Abhishek Balar and Shri Sudeep Dasani for revival of the corporate Debtor. (8) It is stated that there was a significant difference between the valuation amount provided by Shri Pulianda Chengappa Achaya and Shri Motappa Thimmarayaswamy on Plant and Machinery, therefore, the ....
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....rd to claim of the Operational Creditors the Resolution Applicants are providing an upfront payment of Rs. 0.50 lakh. Apart from upfront payment Resolution Applicants are providing contingent payment. Name of the Operational Creditor Claim admitted (Rs) Percentage of total claim (Operational Creditors other than statutory (%) Amount offered (Rs.) Manjushree Travels 29,35,511.00 54, 94% 27,471.64 Subramanya Hegde 11,20,000.00 20.96% 10,481.39 Fabchair 72,87,292.00 24.09% 12,046.97 Total 53,42,803.00 100.00 50,000.00 (4) Infusion of funds by the Resolution Applicants: The Resolution Applicants proposes preferential issue and allotment of 45 lakhs (forty five lac shares only) equity share of Rs. 1 each to themselves along with PAC. The Resolution Applicants in addition to the above shares, propose to issue and allotment of 5,00,000 shares (five lakh share only) of Rs. 1 each, having differential voting rights (DVR) of 50 (fifty only) vote per share to themselves along with PAC. (5) Schedule of payment to various stakeholders: Particulars Claims admitted (Rs. Lacs) Proposed payment amount (Rs. Lacs) Upfront payment (Rs. Lacs) Defer red payment (Rs In lac) ....
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....00 Equity shares of Re.1/- each. ii. Extinguishment of all dues including taxes, duty, penalties, interest, fined, cess, charges, unpaid TDS/TCS to the extend applicable), whether admitted or not, due or contingent, whether part of the above mentioned contingent liability schedule dues or not, whether claimed by the tax authorities or not, asserted or unasserted, crystallized or not crystallized, known or unknown, secured or unsecured, disputed or undisputed, present or future, in relation to any period prior to the acquisition of control by the Resolution Applicants and PAC over the Corporate Debtor pursuant to this Resolution Plan, except for which payment is specifically provided under this plan. iii. On approval of the plan by the Adjudicating Authority the Corporate Debtor, Resolution Applicants including PAC shall be deemed to be exempt from payment of any charges, duty, levy for transfer of ownership of the Corporate Debtor in pursuant to the resolution plan approved by the Adjudicating Authority. iv. On approval of the Plan by the Adjudicating Authority, it shall be deemed that the Corporate Debtor and Resolution Applicants along with PAC shall not be liable for an....
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....orate debtor profitable and grow the corporate Debtor by capturing available opportunities in the industry in right time as compared to sparing time on long pending litigations on the Corporate Debtor for which Resolution Applicants would be completely unaware. 10. Upon approval of the plan by the Adjudicating Authority, the RP shall get the accounts and financial statements prepared upto the effective date and submit the same to the Resolution applicants. The Accounts and financial statements prepared shall be such that it truly reflects the fair value of the assets and liabilities of the Corporate Debtor. It is clarified that the approval of the Adjudicating Authority pursuant to Section 31 of the IBC shall constitute adequate approval for the reduction of the paid up share capital of the Corporate Debtor and for adjustment of losses in the books of the Corporate Debtor. 11. Business Plan: Resolution Applicants propose to continue the business of the Corporate Debtor and stated that they will try to discontinue low margin products and would emphasize more on high margin products as well as new products. A periodic review of the same will be made by ten management team. 1....
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....e compliances are briefly pointed out as under: (1) The Resolution Professional examined the resolution plan received from the Resolution Applicant Mr. Sanjay Punglia along with co-applicants viz., Mr. Abhishek Balar and Mr. Sudeep Dasani and approved by the COC of V3 Engineers Private limited. (2) The RP certify that : (i) The said Resolution Plan complies with all the provisions of the Insolvency and Bankruptcy Code, 2016 (Code), the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) regulations, 2016 (CIRP Regulations) and does not contravene any of the provisions of the law for the time being in force. (ii) The Resolution Applicants Mr. Sanjay Punglia along with co-applicants namely, Mr. Abhishek Balar and Mr. Sudeep Dasani has submitted an affidavit pursuant to section 30(1) of the Code confirming its eligibility under Section 29A of the Code to submit. Resolution Plan. The contents of he said affidavit are in order. (iii) The said Resolution Plan has been approved by the COC in accordance with the provisions of the Code and the CIRP Regulations made thereunder. The Resolution Plan has been approved by 100% of voting share ....
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....e: Resolution Applicants proposed a contingent payment to the operational creditors (other than statutory dues) and related party financial creditors for payment of 50% of the receivables than shall be recovered by the resolution applicants within a period of 1 year from the date of approval of resolution plan. (6) The interests of existing shareholders have been altered by the resolution Plan as under: Sl No. Category of Shareholder No of shares held before CIRP No. of Shares held after the CIRP Voting share (%) held before CIRP Voting Share (%) held after CIRP 1 Equity 96,48,633 0 100 0 2 Preference 0 0 3. - - - - - 7. The above facts and circumstances clearly establish that the Resolution Plan, which was approved by the Committee of Creditors on 21.08.2020 for Mr. Sanjay Punglia Resolution Applicant along with co-applicants viz., Mr. Abhishek Balar and Mr. Sudeep Dasani, confirm all the requisite conditions and reasonably satisfy all the stake holders of Corporate Debtor and it was approved with requisite majority. Therefore, we are satisfied that the said Resolution Plan is a fit to be approved, under Section 31(1) of the IBC, 2016. 8. ....