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2024 Supreme(Online)(NCLT) 63
NATIONAL COMPANY LAW TRIBUNAL
Smt. Bidisha Banerjee, Shri D. Arvind
Uttam Tekriwal VS
IA(I.B.C) - 1963/2023
For the Petitioner:Udit Agarwal
The Court has the power to approve a Resolution Plan under Sections 30 and 31 of the Insolvency and Bankruptcy Code, 2016, if it is found to be in compliance with the requirements of the Code and the Regulations.
Headnote:
Insolvency and Bankruptcy - Corporate Insolvency Resolution Process - Sections 30, 31 of the Insolvency and Bankruptcy Code, 2016 - Approval of Resolution Plan
Fact of the Case:
The Court convened through hybrid mode to hear the application seeking approval of the Resolution Plan submitted by Darpan Conclave Pvt. Ltd. for the Corporate Debtor. The CoC had approved the Resolution Plan with 82.38% voting. The Resolution Professional provided details of the CIRP process and compliance with the relevant provisions of the Code and Regulations.
Finding of the Court:
The Court found that the Resolution Plan complies with the requirements of Sections 30 and 31 of the Insolvency and Bankruptcy Code, 2016, and Regulations 38 and 39 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Court granted certain reliefs, waivers, and concessions sought by the Resolution Applicant, while directing the Resolution Applicant to make necessary applications to the concerned authorities for renewal of business permits and supply of essential services.
Issues: Whether the Resolution Plan submitted by Darpan Conclave Pvt. Ltd. for the Corporate Debtor should be approved by the Court?
Ratio Decidendi: The Court held that the Resolution Plan is in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016, and the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and is viable and feasible for the revival of the Corporate Debtor.
Final Decision: The Court approved the Resolution Plan submitted by Darpan Conclave Pvt. Ltd. for the Corporate Debtor, subject to certain observations and directions.
ORDER
Per Bidisha Banerjee, Member (Judicial):
1. The Court convened through hybrid mode. 2. Heard the Ld. Counsel for the parties.
3. This application has been preferred to seek approval of Resolution Plan in its entirety along with annexure, Schedule, Appendixes including the claims contained therein as submitted by Darpan Conclave Pvt. Ltd. and reliefs and concessions sought for under the Plan.
4. The CoC in the 9th Meeting has approved the Resolution Plan of Darpan Conclave Pvt. Ltd. by 82.38% vote through E-Voting in respect of the Corporate Debtor.
5. Brief facts of the CIRP process are as under: a. The applicant submits that vide its order dated 07.11.2022 was pleased to admit the petition and appointed Mr. Uttam Tekriwal as the Interim Resolution Professional (“IRP”) of the Corporate Debtor.
The Applicant has been confirmed as Resolution Professional by the CoC in their meeting held on 03.12.2022. b. The Applicant duly made a public announcement in Form ‘A’ on 11.11.2022 in leading newspapers and the IRP also emailed to the IBBI on 17.11.2022 to publish the public announcement on in its website.
c. The Applicant further submits that in terms of Regulation 6 (2) of the IBBI Regulations 2016, the last date for submissions of proof of claim was 21.11.2022 and accordingly after due verification of claim, the Applicant constituted the CoC of the comprised of the six members.
d. Ld. Counsel for the Applicant further submits that during the entire CIRP proceeding, the Applicant held 11 number of Meetings of the CoC. Ld. Counsel for the Applicant further submits that as per required regulation 27 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the Applicant appointed following two registered valuers to arrive at the estimated realisable values of the Corporate Debtor:
- Sl. No. Name Class of Assets
1. Mr. Asim Maity Plant & Machinery and Inventory
2. Mr.
Debasish Ghsoh Plant & Machinery and Inventory e. Ld. Counsel for the Applicant states that publication of Form-G inviting EoI was published in the newspapers namely, Financial Express (English Language) and Ekdin (Bengali Language) on 19.01.2023 wherein the last date for submission of expression of interest was 06.02.2023. f.
Ld. Counsel for the Applicant submits that 2 entities have filed their Resolution Plan one the Successful Resolution Applicant namely Darpan Conclave Pvt. Ltd. and another one namely Soneko Marketing Pvt. Ltd. g. Ld. Counsel for the Applicant further submits that two Valuation Reports for Plant & Machinery and Inventory as on
03.02.2023 as under: h. In view of the above, the Soneko Marketing Pvt. Ltd. was offering a marginally lower bid, than that of Darpan Conclave, hence Soneko Marketing Pvt. Ltd. was declared as the H2 bidder. Darpan Conclave Pvt. Ltd. with its unrevised resolution plan of Rs. 155 Lakhs for the payment to creditors and for the CIRP Costs, was declared as the H1 bidder. After discussion the resolution plan, CoC members persuaded the Darpan Conclave Pvt. Ltd. to revise their bid to a higher value citing a higher liquidation value of the Corporate Debtor to which Darpan Conclave Pvt. Ltd. informed that they would revisit the current position and come back to the CoC soon.
i.
Ld.
Counsel for the Applicant states that the Resolution Professional placed the Resolution Plan for approval before the CoC in their 9th Meeting held on 03.10.2023 and the CoC had approved the Resolution Plan of Darpan Conclave Pvt. Ltd. in the E-voting held on 10.10.2023 with 82.38% votes. j.
Ld. Counsel for the Applicant further submits that anything contained in the Resolution Plan, the Resolution Applicant / Darpan Conclave Pvt. Ltd. proposed payments towards all the stakeholders which shall not exceed Rs. 1.60 Crores, in case any further claims in any category of the stakeholders are admitted and / or and ordered to be paid, the total amount proposed for such category shall stand redistributed to include any such additional claim / liability withou
