AI Drafter 
TaxTMI 
TaxTMI 
2024 (9) TMI 1915
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....espondent No. 2 and liquidator Mr. Jigar Bhatt, who is appearing in person. 2. This appeal has been filed against the order dated 21.08.2024 passed by National Company Law Tribunal Ahmedabad Bench, Court-1 in IA/844(AHM)/2023. The CIRP against M/s. Steelera Engineers Pvt. Ltd. commenced on 16.11.2022 in pursuance of the Form-G issued Resolution plan was submitted by Appellant. On 15.05.2023 Resolution Plan was approved. The Resolution Professional filed the IA/844(AHM)/2023 for approving the Resolution Plan. The Appellant was Resolution Applicant as well as one of the Secured Financial Creditor. The RP in the CIRP process had valued the Corporate Debtor and more than two valuation reports were obtained. However, in Form-H the Resolution ....
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....at this plan was valid for consideration and approval by this tribunal only till 19.10.2023 and any extension given in this deadline by the Resolution Applicant is neither pressed before us by the counsel nor any document stating that any extension beyond 19.10.2023 is given by the Resolution Applicant is produced before us. Further, it is stated that any changes directed by This Tribunal in the plan while approving it, is subject to the approval of the CoC and the Resolution applicant and in our opinion due to this clause this plan results in a conditional plan. II. In this case where the SRA and the Financial Creditor entrusted with 99.87% voting power in the decision of CoC are the same entity and in addition to that wh....
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....2 also submits that the Respondent No. 2 is also receiving the full amount under the plan. 7. Ld. Counsel for the Appellant has submitted that as per the Resolution Plan Proposal for payment to secured creditors is contained in paragraph 6.5.1. and 6.5.2. of the plan which has also been extracted by the Resolution Professional in the application following is the proposal: "6.5.1. Amount- Secured Financial Creditors shall be paid an amount of Rs. 6,25,00,000/- against full and final settlement of their admitted claim of Rs. 6,28,89,923/-, Unsecured Financial Creditors shall be paid an amount of Rs. 82,029/- against full and final settlement of their admitted claim of Rs. 82,541/- as more particularly described in Para 6.3.6. ....
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.... meetings of which the minutes are attached with this Application and in which all the important decisions in relation to this CIRP process is attended and voted by the Successful Resolution Applicant i.e, Midpoint Commodeal Private Limited only". 9. Now, we come to the other reasons given by the Adjudicating Authority for rejecting the resolution plan i.e. paragraph 44. Adjudicating Authority has observed that plan does not address the cause of default and the date on the book of the corporate debtor post the approval. With regard to cause of default, Ld. Counsel for the Appellant has referred to clause 10 of the Resolution Plan which provides as follows: "10. Cause of Default by Corporate Debtor: As per the informatio....
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....ional affidavit filed on 31.07.2024 vide diary no. D 6083. The copy of Extended Bank Guarantee issued by Federal Bank Limited is annexed hereto at "Annexure F" of the additional affidavit". 11. The plan was approved on 15.05.2023 by CoC and thereafter the application was filed in the year 2023 itself for approval and which remained pending hence above could not be any reason for reject the plan treating to be conditional plan. In fact, application was filed for approval of the plan much before 07.08.2023. 12. Ld. Counsel for the Respondent No. 2 who is another financial Creditor has no objection because Respondent No. 2 was also proposed the entire amount. It is well settled principle of IBC that all efforts should be made to resolve ....