V. Nallasenapathy ORDER
Janab Mohammed Ajmal, Member (J)
1. This is an Application filed by the Resolution Professional under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (the Code), seeking approval of the Resolution Plan submitted by consortium of M/s. V. Square and M/s. Bombay Carrier (Resolution Applicant).
2. The facts leading to the Application are as under.
a. Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by an Order of this Bench dated 19.09.2019 upon admission of a Petition under Section 7 of the Code and the Applicant was appointed as the Interim Resolution Professional (IRP).
b. The IRP made a public announcement on 24.09.2019 inviting claims from the creditors of the Corporate Debtor. After receipt of the claims IRP constituted the Committee of Creditors (CoC) of the Corporate Debtor on 22.10.2019.
c. IRP conducted the 1st meeting of CoC on 25.10.2019 wherein the CoC resolved to appoint the Applicant as the Resolution Professional (RP) and the same was confirmed by this Bench.
d. The CoC in its 5th meeting held on 05.03.2020 resolved to file an Application for extension of the CIRP Period. The Applicant filed an Application in IA No. 968 of 2020 for extension of CIRP period. The same was allowed by this Tribunal vide order dated 11.09.2020 by extending the period of CIRP by 60 days to end on 09.11.2020.
e. The Applicant had issued Form-G on 15.03.2020, inviting expression of interest (EOI) from prospective resolution applicants (PRAs). Thereupon consortium of M/s. V. Square and M/s. Bombay Carrier (both proprietorship concerns under sole proprietorship of Shree Vishwanath V. Jare) submitted the Resolution Plan on 30.09.2020.
3. The Applicant put forth the said Resolution Plan before the CoC in its 6th meeting held on 19.10.2020 and the CoC suggested some modifications/alterations/additions to the Resolution Plan.
4. After due verification of the eligibility of Resolution Applicant in terms of Section 29A of the Code, the CoC in its 8th meeting held on 29.10.2020 considered the revised Resolution Plan of the Resolution Applicant and decided to put the Resolution Plan for E-voting. The Applicant accordingly kept E-voting open from 10.00 am of 02.11.2020 till 23.59 hrs of 09.11.2020 which was later extended till 23.59 hrs of 16.11.2020. The Applicant declared the E-voting results on 18.11.2020 and the Resolution Plan was approved with 72.27% voting share. The details of Voting shares are as follows:
5. Salient features of the Resolution Plan:
a. SUCCESSFUL RESOLUTION APPLICANT (SRA):
The SRA is a consortium of 2 members. Consortium member one viz., M/s. V. Square has more than 20 years of experience in various businesses including dealing in distressed assets. The net worth of M/s. V. Square was ` 10,16,22,027/- as on 31.03.2020. Consortium member two viz., M/s. Bombay Road Carriers is in the business of trading of material handling equipment. The net worth of M/s. Bombay Road........