Resolution plan duly approved by CoC with 74.61% voting and in compliance with all provisions was to be approved: NCLT

Case Details: Ashok Kumar Gulla v. Fedders Electric & Engineering Ltd. - [2022] 134 taxmann.com 271 (NCLT - Allahabad)

Judiciary and Counsel Details

• • Dr. Deepti Mukesh, Judicial Member and Ms. Sumita Purkayastha, Technical Member
  • Ms. Gunjan Jadwani, Adv. for the Applicant.

Facts of the Case

In the instant case, the application was filed by the Resolution Professional (RP) u/s 30(6) and 31 of the IBC, 2016 seeking the approval of the Resolution Plan submitted by IM+ Capitals Limited (“Successful Resolution Applicant”) in the CIRP of Fedders Electric & Engineering Limited (“Corporate Debtor”). The Resolution plan was duly approved by CoC with a 74.61% voting share.

NCLT observed that Resolution Professional (RP) had examined Resolution Plan and had found it to be in compliance with section 30(2), read with regulation 38. Further, in accordance with regulation 39(4), RP vide his Affidavit certified that Resolution Plan so submitted met all requirements of IBC and Regulations thereunder and further, the Resolution Professional had submitted compliance certificate in Form-H, inter alia, certifying eligibility of Resolution Applicant under section 29A and feasibility and viability of Resolution.

NCLAT Held

NCLAT held that the resolution plan, as approved by CoC, was found in accordance with section 30(2) read with section 31, thus, Resolution Plan was to be approved under sub-section (1) of section 31 and said Resolution Plan shall be binding on the corporate debtor, members, employees of the corporate debtor, creditors of the corporate debtor and other stakeholders involved in Resolution Plan.