National Steel And Agro Industries Limited Vs Rite Bite Private Limited (NCLT Mumbai)
In the case of National Steel And Agro Industries Limited vs. Rite Bite Private Limited, the National Company Law Tribunal (NCLT) Mumbai has granted approval to the resolution plan submitted by Rite Bite Trading Pvt. Ltd.
FULL TEXT OF THE NCLT JUDGMENT/ORDER
The Bench is convened by videoconference today.
2. This Application under Section 30(6), 31 and 60(5) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the Code) seeks the approval of the Resolution Plan submitted by the Successful Resolution Applicant.
2.1 The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by this Bench by an order dated 02.06.2022 under section 7 of the Insolvency and Bankruptcy Code 2016 (hereinafter referred to as ‘the Code’) (Admission Order) and Mr. Navin Khandelwal, was appointed as Interim Resolution Professional, who was appointed as Resolution Professional (RP) of the Corporate Debtor vide resolution passed by CoC its 1st meeting held on 01.07.2022.
2.2 The IRP published a public announcement as per Section 13 & 15 of the Code, inviting claims from the creditors of the Corporate Debtor. The RP issued Form-A under Regulation 6 dated 04.06.2022 and made Public Announcement calling the creditors to submit their claims. The last date for submission of proof of claim was 16.06.2022.
2.3 Subsequently, the CoC approved the eligibility criteria for the prospective Resolution Applicants in the third Meeting of CoC held on 08.08.2022 and in this regard, an invitation for expression of interest was published in Form G on 13.08.2022 in one English namely “Free Press Journal” and one regional language newspaper namely “Navshakti” wherein the last date for submission of Expression of Interest (“EOI”) was 28.08.2022 and last date for submission of Resolution Plan was 12.10.2022, which was extended by 7 days i.e. 19.10.2022 after due approval from CoC.
2.4 It is submitted by the Applicant that pursuant to the Publication of invitation for expression interest in Form G dated 13.08.2022, the Applicant received EOI from 3 Prospective Resolution Applicants (“PRA”). The said PRAs were featured in the Provisional List of PRA as well as Final List of PRA issued by the Applicant on 07.09.2022 and 12.09.2022 respectively.
2.5 The applicant further states that, two PRA had submitted their Resolution Plan on 19.10.2022 which was placed before the CoC for their consideration in the fifth CoC Meeting held on 20.10.2022.
2.6 Accordingly, in the 7th CoC meeting held on 22.11.2022, the Plans submitted by the prospective Resolution Applicants put forth for voting. The Applicant sought vote of the CoC members by electronic voting system which was conducted from 23.11.2022 to 24.11.2022.
2.7 Accordingly, the Resolution Plan submitted by Anjali Entrepreneurs Private Limited was approved by the CoC with 100% votes in its favour and the Prospective Resolution Applicant was declared as Successful Resolution Applicant (“SRA”).
2.8 It is submitted by the Applicant that the SRA has successfully furnished the Performance Security of Rs. 10,00,000 in the Bank Account of the Corporate Debtor on 24.11.2022 and also have accepted the Letter of Intent issued by the Applicant on 24.11.2022
2.9 The salient features of the approved Resolution Plan of Successful Resolution Applicant are as follows:
Term of Resolution Plan shall be 3 months from the date of approval of the Resolution Plan by the adjudicating Authority. The Resolution Plqn shall be implemented in the following manner:
(a) Infusion by the Resolution Applicant of Insolvency Process Cos on actual basis within 30 days of the approval of the Resolution Plan by the Adjudicating Authority
(b) After meeting out with the Insolvency Process Cost, remaining amount will be contributed by the resolution applicant in accordance with the below mentioned table. This amount shall be used for making payment to all the creditors and to other stakeholders in full and final settlement of their dues within 3 months of the approval of the resolution plan by the adjudicating authority. Resolution applicant can invest directly in the Corporate Debtor by way of equity or debt or the combination of both
Term and Implementation Schedule of Rs. 110 Lakhs
