Punjab National Bank (International) Limited Vs Steadfast Shipping Private Limited (NCLT Mumbai)
Conclusion: Resolution plan for Steadfast Shipping Private Limited was approved under Section 31 of the Insolvency and Bankruptcy Code, 2016, after finding that the plan met all requirements under Section 30(2) of the Code and was approved by the Committee of Creditors (CoC) with 100% voting share. Adjudicating Authority’s role was limited to checking compliance with Section 30(2) and that it could not interfere with the commercial wisdom of the CoC.
Held: The application was filed by the Resolution Professional under Section 30(6) read with Section 31 of the Code seeking approval of the resolution plan submitted by Priyam Projects (I) Private Limited (“Successful Resolution Applicant/SRA”), which had been revised and improved before being placed in the 7th CoC meeting. The CoC, consisting of a single secured financial creditor, Punjab National Bank (International) Limited, approved the plan unanimously. RP submitted that the plan met all requirements of Section 30(2) and the relevant CIRP Regulations, provided for priority payment of CIRP costs, dealt with operational creditors as required by the Code, and ensured management and supervision through a monitoring committee consisting of the RP, a nominee of the SRA, and a CoC member. And, the plan also set out three implementation phases over 120 days, proposed acquisition of the corporate debtor M/s Steadfast Shipping Private Limited as a going concern, allowed for restructuring through a special purpose vehicle, and maintained compliance with Section 29A eligibility norms. the present application was being filed for the approval of the Successful Resolution Plan in accordance with Section 30(6) and Section 31(1) of the Code. It was noticed that RP had 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(2)(a), 38(2)(b), 38(2)(c) & 38(3) of the Regulations. RP had filed Compliance Certificate in Form-H along with the Plan. On perusal the same was found to be in order. The Resolution Plan had been approved by the CoC by majority of 100%. Relying on Supreme Court’s decision in K. Sashidhar v. Indian Overseas Bank & Others, that once the CoC had approved a resolution plan with the required majority, the Adjudicating Authority’s role was limited to checking compliance with Section 30(2) and that it could not interfere with the commercial wisdom of the CoC. It pointed out that the plan in this case satisfied all statutory requirements, did not contravene any law, and addressed stakeholder interests as per the Code. Tribunal approved the resolution plan. The moratorium under Section 14 was lifted, and the Resolution Professional was directed to supervise the implementation of the plan and submit periodic status reports. The Registry was instructed to send a certified copy of the order to the CoC and the Successful Resolution Applicant for compliance.
