ORDER

Per: Kishore Vemulapalli, Member (Judicial)

1. This is an application being IA No. 716/MB-IV/2021 filed by Mr. Raj Kumar Dad, the Applicant, under Section 31 of IBC, 2016 (the Code), for approval of the Resolution Plan filed by Girija Agarwal for an amount of Rs. 8.7 crores, for the Corporate Debtor Srithik Ispat Private Limited (hereinafter called as the “Corporate Debtor”) and approved by 100% CoC members.

2. The brief submissions on behalf of the Applicant is as under:

a) This Tribunal vide its order dated 30.09.2019 admitted the Petition filed by the Financial Creditor under section 9 and 8 of the Code against the Corporate Debtor and the Applicant was appointed as an IRP in the matter.

b) Pursuant to the appointment of the Applicant as an Interim Resolution Professional (hereinafter referred as IRP), the Applicant was confirmed and appointed as an Resolution Professional (hereinafter referred as RP) by the members of Committee of Creditors (hereinafter referred as CoC), the Applicant has since then carried out its duties in accordance with the provisions and rules as envisaged under the Code with respect to the Corporate Insolvency Resolution Process (hereinafter referred as CIRP) of the Corporate Debtor.

c) The Applicant has conducted the meetings of the CoC in the past on eight occasions. Following is the list of the dates on which the said CoC meetings were conducted:

Sr. No. Particulars Date

1. 1^st CoC Meeting 24.10.2019

2. 2^nd CoC Meeting 02.12.2019

3. 3^rd CoC Meeting 17.01.2020

d) The Applicant states that the Form G inviting Expression of Interest (hereinafter referred as EoI) was published on 20.01.2020 consequent to which the RP received a Resolution Plan submitted on 11.03.2020 and the same was rejected by the CoC following which in the 7^th CoC Meeting which held on 21.08.2020, the members of CoC passed a Resolution to file an Application seeking the directions of this Tribunal to liquidate the Assets of the Corporate Debtor. In view of the above, the RP filed an Application bearing IA 241 of 2021 on 09.10.2020 for Liquidation of the Corporate Debtor.

e) However, the RP received a revised Resolution Plan which was submitted to the RP on 23.02.2021 following which the ‘Final Plan’ was arrived at which was submitted on 25.02.2021. The said Final Plan was placed before the members of the CoC for their approval. The members of the CoC after deliberations during its 8^th CoC meeting conducted on 26.02.2021 arrived at a conclusion to approve the said Final Plan. The Final Plan submitted by Mrs. Girija Agarwal was approved by the CoC members vide E-voting conducted till 06.03.2021.

f) The Resolution Plan submitted by the Resolution Applicant (hereinafter referred as RA) is for a total amount of Rs.8,70,00,000/- (Rupees eight crore seventy lakh only). The RA has proposed the following broad steps to revive the unit of the Corporate Debtor, they are as follows:

i. Reductions in Debt of the Company;

ii. Extinguishment of various operational and statutory liabilities;

iii. Reliefs from the Contingent liabilities;

iv. Reliefs from the ongoing cases against the company and ratification of the various non-compliances;

v. Obtaining necessary approvals form pollution control board, electricity board and others statutory departments for restarting the unit Better raw material resourcing and Necessary working capital to be raised at low cost of funds.

g) The RA has further arranged the proposed resolution consideration from family and friends with an option to provide equity share against the unsecured loan. Total consideration is proposed to be paid as upfront payment in the revised Resolution Plan by the RA.

h) The Applicant further says that there are no dues to be paid to the workers as wages or salaries. The statutory dues towards labour, including the dues towards the Provident Fund Department being more than 2 years old are covered under Operational Creditors (Statutory Creditors). Hence no amount is to be paid towards the same. The RA a