Resolution Plan of Amit Metaliks binding on VSP Udyog

Resolution Plan of Amit Metaliks  binding on VSP Udyog

The National Company Law Tribunal, Kolkata Bench has approved the Resolution Plan of M/s. Amit Metaliks Limited(which has also been approved by the Committee of Creditors with 95.35% voting shares) under provisions of sub-section (1) of Section 31 of the Insolvency and Bankruptcy Code, 2016 and has also held that it will be binding on the Corporate Debtor, M/s. VSP Udyog Private Limited, its employees, members, creditors, guarantors, the Central Government, any State Government or any local authority and other stakeholders involved in the Resolution Plan.

The present Company Petition, was admitted vide Order dated 7th August, 2019, by ordering Corporate Insolvency Resolution Process, as against the Corporate Debtor, M/s. VSP Udyog Private Limited, and vide Order of this Tribunal, Mr. Raj Singhania was appointed as Insolvency Resolution Professional(RP).

The Resolution Professional, filed this Application, praying for approval of the Resolution Plan of the Corporate Debtor, under Section 30(6), read with Section 31 of the Insolvency and Bankruptcy Code, 2016, along with Regulation 39(4) of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, for the reason that the Resolution Plan of M/s. Amit Metaliks Limited, was approved by the Committee of Creditors with 95.35% voting shares.

Keeping all the facts in consideration, the Tribunal has observed that the assets of the Corporate Debtor are going to rest in a safer hand.

The RP deserves special appreciation for finding out a Resolution Applicant, whose Plan has been approved by the Committee of Creditors by 95.35% voting share, even in these difficult times of pandemic, due to COVID-19. All the provisions of mandatory requirements are seen complied with by the Resolution Applicant. As per Form H, submitted by the RP, it makes provision for the payment of the Insolvency Resolution Process, payment of the debts of Operational Creditors, Management of the affairs of the Corporate Debtor, and also provision for implementation and supervision of the Resolution Plan. It also provides terms of the Plan and its implementation schedule. So it is a feasible and viable Plan.

The Tribunal has also specifically mentioned that a judicious distribution of the financial bids by the COC to the stakeholders according to their entitlements can be inferred from the Plan under consideration. No waiver of extinguishments in contravention of the provisions of the Code or in violation of existing laws seen not brought out and therefore, there is nothing in the Plan, so as to disapprove it.

The Company Petition in question, was admitted on 7th August, 2019. However, upon expiry of 180 days, the period of CIRP was extended, excluding the days lost during the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak, not to be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a Corporate Insolvency Resolution Process and thereby, approval of the Plan by the COC within the period of 270 days.

The COC has very well deliberated with the Plans received by it and decided the viability, feasibility and financial matrix of each Plan and approved one with 95.35% vote shares of the members of the Committee of Creditors.

It has also been directed by the Tribunal that the Resolution Plan shall come into force from the date of pronouncement of this Order i.e. on 20/10/2020 and the moratorium Order passed under Section 14, shall cease to have effect.