Extinguishment of Non-Included Claims Upon Resolution Plan Approval

Arun Kapoor In the matter of Good Value Financial Services Private Limited Vs Peacock Construction Private Limited (NCLT Mumbai)

Regarding the Reliefs and Concessions stated in Clause 19 of the Resolution Plan, the exemption as sought for in relation to the payment of registration charges, stamp duty, taxes and fees arising out of the implementation of the Resolution Plan is not granted. As regards the other reliefs and concessions as sought for, which exempts the Corporate Debtor from holding it liable for any offences committed prior to the commencement of CIRP and as stipulated under Section 32A of IBC, 2016 are hereby granted to the Resolution With regard to other concessions and reliefs, most of them are subsumed in the reliefs granted above. The relief which is not expressly granted above, shall not be construed as granted. The exemptions, if any, sought in violation of any law in force, it is hereby clarified that such exemptions shall be construed as not granted. Further in terms of the Judgement of Hon’ble Supreme Court in the matter of Ghanshyam Mishra and Sons Private Limited vs. Edelweiss Asset Reconstruction Company Limited, on the date of approval of the Resolution Plan by the Adjudicating Authority, all such claims which are not a part of Resolution Plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim which is not a part of the Resolution Plan. In view of the foregoing, this Plan is hereby approved.

FULL TEXT OF THE NCLT JUDGMENT/ORDER

1. This is an Application filed under Section 31 of the Insolvency & Bankruptcy Code, 2016 (“the Code”) for seeking approval of this Bench in respect of the Resolution Plan submitted by the Resolution Applicant i.e. LA Kozy Builders LLP (“RA”) which was passed by the Committee of Creditors (“CoC”) with requisite majority under Section 30(4) of the Code.

2. The Corporate Debtor is engaged in the business of acquisition of construction projects for residential as well as commercial projects. By an Order of this Tribunal dated 31^stDecember 2019, Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor and the Applicant was appointed as the Interim Resolution Professional (IRP) and was later confirmed as the Resolution Professional (RP) of the Corporate Debtor in the First Meeting of CoC held on 30^th January 2020. The CoC was constituted on 22^nd January 2020 in compliance of Regulation 17(1) of CIRP Regulations. However, the CIRP came to a standstill soon after its commencement on account of nationwide lockdown due to the Later, the CIRP progressed and the Applicant received Expression of Interest (EOI) from four Prospective Resolution Applicants before the last date for submission of EOI on 5^th September 2020. The Applicant states that the SRA submitted a Resolution Plan dated 24^th October 2020 which was last revised on 22^nd March 2021 for the purpose of curing certain defects. Subsequently, the Plan was put to vote and was approved by the CoC with 75.35% majority voting share in the Sixth Meeting of the CoC held on 26^th April 2021 and 27^th April 2021.

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