AI Drafter 
TaxTMI 
TaxTMI 
2020 (9) TMI 1312
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.... of the Resolution plan for revival of the 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.....
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....mission of Expression of Interest was 6111 July 2020 and also in the website of IBBI. Accordingly, Expression of Interest (EOI) was received from two Applicants viz., Mr. Sanjay Punglia on 2^nd 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 Subsequently, V3 Interiors Private Limited withdrawn the Expression of Interest and Mr.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 t....
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..... 5,44,236/-, the Resolution Applicants are providing an amount of Rs. 1,50,000/- towards full and final settlement of all statutory dues. The same shall be distributed amongst the various statutory dues, in the ratio of their claim admitted by the RP if any. (3) Operational Creditors: With regard 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 allotme....
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....se of the Memorandum of Association of the Corporate Debtor: The Capital Clause of the Corporate Debtor in Authorized Share Capital of the Corporate Debtor shall be amended pursuant to Section 61 read with Section 66 and other Applicable provisions, if any of the Companies Act, 2013, so as to issue shares as per Resolution Plan as mentioned below: i. The existing authorized share capital of the Corporate Debtor comprising of 1,00,00,000/- Equity Shares of Rs.10/- each shall be subdivided into 10,00,00,000 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 spec....
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....roviding the Corporate Debtor and Resolution Applicants immunity in case of any proceedings/suits/claims going on, on the Corporate Debtor as well as any proceeding/suits/claims which may arrive - after taking over corporate debtor but which pertains to the period prior of taking over, as Resolution Applicants is completely unaware of past business transaction of the corporate Debtor and would not be in a position to face the same. The same is required for the revival of the corporate Debtor and so that, subsequent board member would focus more on making corporate 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 clari....
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....o be paid to the operational creditors in the event of a liquidation of the corporate debtor under Section 53; 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. 6. In compliance with the said conditions, the Resolution Professional has submitted various documents and statements as per provisions of the Code and the Rules made there under. And these 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 Pr....
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.... section 21 74.33 74.33 0.25 (b) Other than (a) above: (i) who did not vote in favour of the Resolution Plan (ii}Who voted in favour of the resolution Plan - - - - Total [(a) + (b)] 3. Operational Creditors {a) Related Party of Corporate Debtor (b) Other than (a) above: (i) Government 5.44 1.79 1.50 (ii) Workmen - - - (iii) Employees 20.41 20.41 0.25 (iv) Other Operational Creditors 53.43 53.43 0.50 Total [(a) + (b}] 4. Other Debts and dues Grand Total "If there are sub-categories in a category, please add rows for each sub-category. Note: 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 r....