S.No.,Particulars,Amount (in Rs.)
1,CIRP Costs,"25,00,000
2,Secured Financial Creditor,"11,75,00,000
3,"Operational Creditors other than the employees
and directors",nil
4,Employees and Workmen,Nil
,Sub Total (A),"12,00,00,000
5,Infusion of .vorking Capital,"2,00,00,000
,Sub Total (B),"2,00,00,0000
6,Acquisition of land,"10,00,00,000
7,Addtl.Civil Works /ETP etc.,"4,00,00,000
S.No,Particulars,Terms and amount
1,"Performance Guarantee
Amount","Performance Guarantee to Rs.1.20
Crores(Including Rs.l Crore deposited with
the RP) being 10% of the plan onsideration
as stipulated in RFRP
2,Upfront amount,"By deposit Rs.4.80 Crores (including
performance guarantee deposit) being down
payment within one month from the date of
approval of the Resolution plan approved by
this Hon’ble Bench.
3,Balance Amount,"Balance amount of Rs.7.20 Crores will be
deposited within 4 months from the date of
approval of the Resolution Plan approved by
this Hon’ble Bench..
4,"Infusion of working
capital","Infusion of working capital is Rs.2.00 Crores
will be deposited within 4 months from the
date of approval of the Resolution Plan
approved by this Hon’ble Bench.
The total Rs. 14,00,00,000/- shall be paid as per the schedule above.",,
5,"Expansion Amount for
improving the
operations of the
Company Â","i. Â Expansion in 1 to 3 years
Rs. 10,00,00,000/- will be paid for
Acquisition of land;
ii. Â Expansion in 1 to 3 years
Rs.4,00,00,000/- will be paid for
Additional Civil works/ETP etc.,;
iii. Â Expansion in 1 to 3 years
Rs.4,00,00,000/- will be paid for
Additional Equipment’s;
iv. Â Expansion in 1 to 3 years
Rs.6,00,00,000/- will be paid for Infusion
of Additional working capital.
Section 31 of the Code deals with the Resolution Plan as approved by the CoC under section 30(4) meets the requirements provided under section,,
30(2) of the Code. Thus, it is the duty of the Adjudicating Authority to satisfy itself that the Resolution Plan as approved by the CoC meets the above",,
requirements.,,
7. On perusal of the Resolution Plan, it is observed that the Resolution Plan provides for the following:",,
a) Â Payment of CIRP Cost as specified u/s 30(2)(a) of the Code.,,
b) Â Repayment of Debts of Operational Creditors as specified u/s 30(2)(b) of the Code.,,
c) Â For management of the affairs of the Coiporate Debtor, after the approval of Resolution Plan, as specified U/s 30(2)(c) of the Code.",,
d) Â The implementation and supervision of Resolution Plan by the RP and the CoC as specified u/s 30(2)(d) of the Code.,,
e) Â The RP has certified through affidavit that the Resolution Plan is not in contravention to any of the provisions of law, for the time being in force, as specified u/s",,
30(2)(e) of the Code.,,
8. In terms of Regulation 27 of the Regulations, Tiquidation value was ascertained through registered valuers and the Liquidation value is Rs.5.04",,
Crores and the Resolution Plan offers Rs.38,00,00,000/-.",,
9. The RP has complied with the requirement of the Code in terms of Section 30(2)(a) to 30(2)(f) and Regulations 38(1), 38(1)(A), 38 (IB) 38(2)(a),",,
38(2)(b), 38(2)(c) & 38(3) of the Regulations. The Plan also its normal course of business upon implementation of Resolution Plan. No objection has",,
been filed by any other person in this regard.,,
10. Â The RP has filed Compliance Certificate in Form-H along with the Plan. On perusal the same is found to be in order. The Resolution Plan,,
includes a statement under regulation 3 8(1 A) of the Regulations as to how it has dealt with the interest of the stakeholders in compliance with the,,
Code and the Regulations.,,
11. Â The Resolution Plan has been approved by the CoC in its meeting held on 26.08.2020 with 100% votes.,,
12. In K Sashidhar v. Indian Overseas Bank & Others (in Civil Appeal No. 10673/2018decided on 05.02.2019) the Hon’ble Apex Court held,,
that if the CoC had approved the Resolution Plan by requisite percent of voting share, then as per section 30(6) of the Code, it is imperative for the",,
Resolution Professional to submit the same to the Adjudicating Authority (NCLT). On receipt of such a proposal, the Adjudicating Authority is",,
required to satisfy itself that the Resolution Plan as approved by CoC meets the requirements specified in Section 30(2). The Hon’ble Court,,
observed that the role of the NCLT is ‘no more and no less’. The Hon’ble Court further held that the discretion of the Adjudicating,,
Authority is circumscribed by Section 31 and is limited to scrutiny of the Resolution Plan “as approved†by the requisite percent of voting share of,,
financial creditors. Even in that enquiry, the grounds on which the Adjudicating Authority can reject the Resolution Plan is in reference to matters",,
specified in Section 30(2) when the Resolution Plan does not conform to the stated requirements.,,
13.  In CoC of Essar Steel (Civil Appeal No.8766-67 of 2019 decided on 15.11.2019) the Hon’ble Apex Court clearly laid down that the,,
Adjudicating Authority would not have power to modify the Resolution Plan which the CoC in their commercial wisdom have approved. In para 42,,
Hon’ble Court observed as under:,,
“Thus, it is clear that the limited judicial review available, which can in no circumstance trespass upon a business decision of the majority of the Committee of",,
Creditors, has to be within the four corners of section 30(2) of the Code, insofar as the Adjudicating Authority is concerned, and section 32 read with section",,
61(3) of the Code, insofar as the Appellate Tribunal is concerned, the parameters of such review having been clearly laid down in K. Sashidhar (supra). â€",,
14. Â In view of the discussions and the law thus settled, the instant Resolution Plan meets the requirements of Section 30(2) of the Code and",,
Regulations 37, 38, 38(1A) and 39 (4) of the Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the",,
Code and is in accordance with law. The same needs to be approved. Hence ordered.,,
ORDER,,
i. The Resolution Plan annexed to the Application is hereby approved. It shall become effective from this date and shall form part of this order. It shall be binding on,,
the Corporate Debtor, its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of",,
the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan.",,
ii. The Memorandum of Association (MoA) and Articles of Association (AoA) shall accordingly be amended and filed with the Registrar of Companies (RoC),",,
Andhra Pradesh for information and record. The Resolution Applicant, for effective implementation of the Plan, shall obtain all necessary approvals, under any law",,
for the time being in force, within such period as may be prescribed.",,
iii. Â The moratorium under Section 14 of the Code shall cease to have effect from this date.,,
iv. The Applicant shall supervise the implementation of the Resolution Plan and file status of its implementation before this Authority from time to time, preferably",,
every quarter.,,
v. Â The Applicant shall forward all records relating to the conduct of the CIRP and the Resolution Plan to the IBBI along with copy of this Order for information.,,
vi. Â The Applicant shall forthwith send a copy of this Order to the CoC and the Resolution Applicant.,,
Accordingly, IA No.33/2021 IN TCP (IB) No. 101/7/AMR/2019 is disposed off.",,
