AI Structured Summary
Not yet generated for this judgment
Judgment
The above-mentioned applications are filed by the Applicant/Vineeta Maheshwari, who is the Resolution Professional of Smt. Husna Mohammed Sadiq, (hereinafter referred to as "Personal Guarantor -1") and Shri Sajid Mohammed Farooqui (hereinafter referred to as "Personal Guarantor-2"), al1 the above collectively, Personal Guarantors of M/s. Texon Global Private Limited, under Section 112 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "Code") read with Rule 1 1 of the NCLT Ru1es, 2016 seeking approval of Repayment Plan submitted by Personal Guarantors.
PRAYERS
The prayers made by the Applicant in IAI1473(AHM)2O24 are as under: -
A. This Hon'ble Adjudicating ,4uthority may be pleased to allow this Application,'
11. This Hon'ble Adiudicaling Authority may be pleased to pdss uppropriate orders as per Sec.l )l of IB Code, in the interest ofjustice,'
C. This Hon'ble ,4djudicating Authority may be pleased to condone the delay oJ 7 days infiling the report u/s. I l2 oJ IBC, in the interest ofjustice;
D. This Hon'ble Adjudicating Authority may be pleased to grant any other relie/ or reliefs as the Hon'ble Trihunal may deemfit;
J. The prayers made by the Applicant in IAIL478(AHII{\2O24 are as under: -
A. This Hon'ble ldludicating Authority may be pleased to pass appropriate orders as per Sec I l1 of IB Code, in the interest ofjustice;
This Hon'ble Adjudicating Aulhority may be pleased to condone the delay of7 days inJiling the report u/s. 112 of IBC, in the interest of justice,'
This Hon'ble Adjudicating Authority may be pleused to grant any other relief or relieJs as the Hon'ble 'I'rihunal muy deemJit,'
4. In both the IAs the Applicant has prayed to condone the delay of 7 days in fiiing the report under Section 112 of the Code which occurred due to multiple revision of resolution plal by the Personal Guarantors. Considering the repayment p1an, we hereby condone the delay.
TAIL4Ls(AIilr0IIzO?4
5. The brief facts of the IA/1413 (AHM)2O24 xe stated to be as under:-
I. This Adjudicating Authority vide its order dated lO.Ol.2O24 admitted the application filed against the Personal Guaraltors under Section 95 of the Code and directed the Applicant/RP to file his report under Section 99 of the Code. Accordingly, the Applicant filed his report dated 01.02.2024 under Section 99 of the
Code.
II. This Tribuna-l vide its order dated 29.04.2024 initiated the IIRP against the Personal Guarantors and directed the RP to take necessa{/ actions in accordance with the provisions of the Insolvency and Bankr-uptcy Board of India. Thereafter, the Applicant issued public notice dated 03.05.2024 in "Busines Standard", English Daily, Ahmedabad Edition and "Lok Satta-Jan Satta" Gujarati Daily, Vadodara Edition calling upon the creditors to submit proof of claims in Form-B. The last date of submission of claim was 24.05.2024. A copy of public notice is annexed at Annexure-C.
III. In pursuance of the same, the Applicant received claims from the sole Financial Creditor viz. Canara Bank for an arnount of Rs. 18,77,62,127.7O which was admitted in fu11 and, thereafter, the Applicant in compliance of Section lO4 of the Code prepared the list of creditors on 29.O5.2024.
IV. The Applicant called upon the Personal Guarantor to submit repayment plan through multiple communications, follows ups. Thereafter, the Applicant
received the repayment plan on 75.06.2024.
V. The l"t meeting of creditors was held on 15.06.2024 wherein the creditors suggested the Personal Guaraltor to increase the repa;,nnent plan amount ald gave 10 days'time for submission of revised repaS,.rnent plan. However, the Applicant did not receive any revised resolution plan ti1l the expiry of 10 days' on 25.06.2024. Accordingiy, the Applicant prepared his report on repayment plan on 25.06.2024 and filed the same before this Tribunal with request to take on record the progress report and condone the delay which was allowed by this Tribuna1 on 1O.O7.2024.
VI. In the meantime, the 2",t meeting of creditors was held on O1.O7.2O24 wherein the RP informed the creditors that aJter multiple reminders and follow up, the Personal Guarantor did not submit any repayment plan even a-fter the expiry of 1O days' period on 25.06.2024. The Applicant ald creditors suggested the Personal Guarantor to submit the linal repayment plan by 7O.O7.2O24, failing which no further extension would be granted. Thereafter, the Applicant received
the revised repayment plan from the Persona-l Guarantor on 1O.O7.2024.
VII. The 3.d meeting of creditors was held on II.O7.2O24 wherein the Applicant presented the revised plan before the creditors. The Personai Guarantor had offered Rs.200 Lakhs plus Individual Insolvency Resolution Process cost at actual, which according to the creditors the properties included in the plan cannot be approved since they are registered under her spouse's name. Hence, the creditors granted further time till 73.07.2024 to the Personal Guarantor for submission of the improved and revised repayment plan.
VIII.The 4th meeting of creditors was held on 18.07.2024 wherein the Applicant informed the creditors that the Applicarrt revised the repayment piar on 13.07.2024 which is not in compliance with the provisions of the Code.
IX. The sth meeting of the creditors was held on 23.08.2024 wherein it was noted that aJter continuous follow-ups, the Persona-l Guarantor submitted revised repayment plan to the Applicant through whatsapp on
22.08.2024. In this meeting, it was decided to grant one day's time i.e., up to 24.08.2024 to the Personal Guarantor for submission of improved and revised plan. In pursuance to the same, the Applicant received revised repayment plan through email on 24.08.2024. Thereafter, the revised repal,rnent plan was put for e-voting for the approval of the creditors on 28.08.2024. The e-voting was concluded on 30.O8.2024 wherein the creditors approved the repayment plal with 7OO'yo voting share. The copy of 5ft meeting along with e-voting is alnexed as Annexure-K.
X. Accordingly, the Applicant prepared the report dated 31.08.2024 in relation to meeting of creditors upon repal,nnent plan.
6. As per the repal.rnent plan dated 24.O8.2024, the Repayment Plan Amount and Payment Terms mentioned in Clause 4.2 are as under:-
Particulars Amount (Rs.) Payment Schedule Resolulion Process Cost Actual cost On priority hasis (around 6 to 7 lacs) Payment to Creditors 135 Lokhs 6 months (5 lakhs up front amounl and rest 130 lakhs in 2 inslallments oJ 65 lakhs each at interval o/ 3-3 months) Total amount provided 135 Lakhs 6 Months under the Plan for
Creditors
7. As per Clause 4.4 of the repa5,nnent plan, the proposed instrrrments for infusion of funds and its source are as under:-
Source of Funds Amount (in Rs.) Borrowing amottnt from my Brolher, Uncle I 5 Lakhs and from my Son-in-Low remttining amount will be given by selling oJ my shares in.jointly property owned al Karadiya Dhar Total 135 Lakhs
8. As per Clause 4.6 of the repayment plan, the Terms and Conditions of the Repayrnent PIan are as under:-
4.6. Terms and Contlitions of the Repayment Plan
4.6,1. The proposed payments b creditors as above have been made based on available infor mat ion.
4.6,2. The Repayment Plan amounl borrowed ./rom Jiiends and relatives of Debtor/ Personal Gtnrantor will be depositetl on or be/bre the date specifiedJbr payment oJ the Repayment Plon amount, in a bank account opened by resolution proJbssional in the name of IIUSNA MOHAMIL4D SADIQ FAROOQUI In IIRP, with inJbrmction to the Creditors orul the same shall be disbursed among the crediktrs as per terms of Repayment Plan. The said account will be closed on complete implementation of the repayment plan.
4.6.3.Any dislribution oJ the Repayment Plan amount so deposited shall be made by the Resolution ProJbssional within I year .from the date of approval oJ. repayment plan by Adjudicating Authority under Section 111 of the Insolvency and llankruplcy Code, 201 6.
4.6.4.RP shall furnish any information or update that may be sought by the MOC in relation to the implementotion of this Repayment Plan.
4.6.5.HUSNA FAROOQUI is not having any income. Minimum amount required to cover the reasonable expenses shall be taken from family members. Hence there is no amount to be reducedfrom the proposed repayment plan towards such minimum budget.
4.6.6. If in the opinion of the W, the Guarqntor hos failed in the implementation of the Repayment Plan, the RP shall, within 7 days of knowledge of such failure, issue a notice to the Guarantor identifying such foilure and requiring the Guarantor to address the failure, if so possible and provide an explanation for thefailure withinJifteen days ofsuch notice.
As per Clause 4.7 of the Repayment Plan, the Supervision and Implementation of the Repayment Plan are as under:-
"4.7. Supervision and Implementation ofRepayment Plan
4.7.1.The debtor propo.ses this repayment plan to settle the due of the credilors within the period of I yeor. Upon the approval of the Repayment Plan by the Adjudicating Authority, the resolution professional shall supervise the implementation of lhe repayment pldn ds per Section )1(t of lhe In.solvency und Ilonkruptcy Code, 2016. The llesolution Professional moy apply to the Adjudicating Authority Jbr necessary direction(s) in relation to any motter arising under the repayment plan".
10. As per Clause 9 of the repayment p1an, the Breach of Repayment Plan is as under:-
9. Breach of Repoymenr Plnn
9.1.1.However, in case of any delay in payment as mentioned in this repayment plan, beyond lhe aforesaid I year, respectively; o grace period/cure period oJ. further 3 months will be available to the guarantor/ the guaranlor u)ith d pendl. interest of 60% per dnnum on the oulslanding amount.
9.1.2.IJ in the opinion of the resolution proJbssional, the Debtor/ Guarantor has Jailed in implementcttion of the repayment plan, the resolulion professional shall, wilhin three days of knowledge of such failure, issue a notice to the guata tor or identifying the failure and requiring him, within fiJieen days of receipt of the notice to-
a. lddress suchJ-ailure if it can be addressed, or
b. Provide explanations for the failure.
9.1.3.IJ the guarantor, within the period specified as above,
c. Addresse.s the Jitilure in implementation of the repdyment plan, or
d. Provides a satisfdctory explanationfor suchfailures, The resolution professional shall report the failure to creditors within seven days
oJ the date ofJailure addressed or explonations profidedfor suchfailure.
9.1.4.In cases not covered in above clauses, the resolulion profe.ssional may apply to the Adjudicating Authority under sub-section (2) of Section 116 Jbr directions, if he is oJ the opinion that failure will alfect the implementdlion of the repayment plan.
11. A scanned copy of the compliance of Section 105 r.w. Regulation \7 of IBBI (Insolvency Resolution Process for Persona-l Guarantor to Corporate Debtor) Regulations, 2Ol9 are as under:-
COIITPLTANCE SEC'I'ION 1O5 AND REGUL]1'I-ION 17 It'I" (INSOI-VI,NCY RES()I-(rrION PTICICESS
Fo R t,!_'RsoN,tL cuArllN,r.o R To co Rpo RA.rr Errro R) n Eci; r-,tt.r oN s, : o t ,),
RclcvJnc provlsron r o(thc Codc nt;t;;"tpr," -
sc(r,o,, Iosrff(., r.,re -i.,vrrrcirr nr.,n,,i.,y Iuthorizc or rcquirt rhe ..,sotxriou professional to cn.ry (,d thc (lcbror,s busircss or.rud. on his buiiness or in hts scc(iorr 1os(?)(blr rrr-."pif-.,rit pr- l nriy ruthorizc or t.cquire rhe resoturion ",'.i ,lrj.,jr.' \tr,j, I'I:,,..t .. q rs not profcssionnl to re.liz. th(! asscrs of thc r)' ()r,o:.ur,_t ri, s'.ll ri,t.,rnn1or.,ht. "p.open,."o.-,1 ", l..n.rr. Nor.lptili.ilbtc. soction os(2)(c):'r-hc rcp.yni;,,r rnoy at'rhorize or rcquirc rhc resotutionakr" r^rit. ltus.n ,\roh:r,r,r)r.r] Si.1rq l3I t' notl I,roflissn,n.rt to idminisroror dtspose of a,ry ,r.olori ,j ro :ictl (hc rn.ro! rbt,: propertprop..ty, It,!(ls ofrhc cl.bk'r IL'ncc Nor,"pp1,..'l,r,.. I sh.tll inclucle Jusrjrica.ior)sc.t,o', ros(r)(.,.). rr r"Jrvmo;i- i,r.rn t,rr. r: or rrr,. r,,ri,v,r,t..,r r.r..r. for prepnrrrio o, ---.1 srch rlpayrnert plir an.t rcasoDs on !t!., i b:r\rs ot wtrich rt). r,,trtors Dry aC.,.r. ,rr)orr th,,l)1i,,. s,..r,",, oslJjJr,;, .rr,. .,1,.y,,,.ii pr.," __l
sl..rll rncludi: tlrovi\r(!,r to. t,.ry,,reor (,1 h,(.r ll ,. lL.t,t ,r/ I,,,-1,,.r.r ,:,ra""iii ro the resolurion p.ofessio!rt t'r.rt)o1..ij.,lurr.r! rO rr,r! rlrt, .rirr)n r towardl Ii, i,,,)i t.5s r:(,rt ., .iLrLsts, Thlals, ffrc .,4,...r. r(l !rrro,rrr ,i( Iu(l.s i1lu,)tryrncnro f.r's to thc r.:solrrllrj,r p ,1.:jror.rl lI'. tt\) J 1-to-tt,.,,r. 1,.t ,. td,)) r.(cgul:rrioI 17(1J(a t: rhe tJ"r" tl,, 'irct",..rc" -rcniymenr pl.rn r d irs impterr,.rrr.,rro"r r',.i rc.r".* s''l:,{lulu, r'r(lu(trr8 chc inrou,rts l,i,t.l.z ' ,(,, ,y,,r,:r,r .,t., !o L. r, t','l(l ,r .l <t.rres ot r,,pryrn.Ir ro crc,t urj I , ,1,,,.,t,.r,,,\ :l .,,r it.,,r.,.,.r.t lu,'4'j ''....rr,, ( i,rL,. rsl. rr.\t, t!)rr l.)|tl]:ll.,tl]7(l)(l))ll]!:1('rl'('('],l|'l|l!, 1,.( \v,ll t),. U,,r,(i lo ,,r.r.r,r(l rl)i'r :jlr.lj t),JyIrt.,]tt,.rj, rr,.:, tr,ri,,l str.,ll r,,.,!.1(!.,., r: i': r. 'rr |.,. r|, rrr ,.r l l,r,.)r ity r'!,(! .,r,,!. i.rlir,,,
] i'ilra 4.4 j Soulces ol:rLrnrls
Ilcgularion 17(1)(c); a rninint nl budgct for Contplieo l'iIil ,l6.4 oi tlle rs l)ilyrrL,ni i)l]r1 the duration ofthe repayment plan, to cover thc reasonable expcnses of the gltarantor and rncnrbcrs ofhis jmrncdiatc fr tily to the that rt least ten pcrcent of tl:e realizable irrconie ofthc guarrnror sh.rll bc utiliscd fbr repaynrent ofdebts
Regulation 17(l)(dl: linancing required for Complicrl P,lra 4.4 ()f r0pilyrnc t pliln. implcmcnration of the replvmcnr pl;rrr
Rcgulation 17(l)(e): if the guaranror has any brrsiness, the rnanner irr which it is proposcd to be condu.ted (luling thc Thi PC d0 not hiv!;rny l.rusincss at preseIt. course of the repayment plan, and the role ence, Not Applicable of the rcsolution professional
Rcgularion 17(1)(f): the nranner in which Conrplirrl P.rrr4.6.l, L6 i oitlrc r,'p.11mur:t 1tl.rn. funds held for the purposes of the rupJyrncnt plan. rnvestcd or othcnvise dcirlt rvirir, pcnding repaynlenr to creditors
ReSul;rtion 17(1)[g): rhe funcrions rvhich Complied Refcren ce Particultrs are to be undertaken by the resolution j'rrra.1,-1 Di(tlbu tion t{l professional, including supervision and Cliriilants/ CrBditors implcnlcntation of the rcpaymcntplan lrrr:r4 [, 'lulrr:s .ltd ( rinililiitl r oi tlt 11qr.r1 :tr.'nt i,lltn l'arii 4.7 Supt,rvision ,rttLl lnr plcmerrtarion oI Repayntent I,lan /l ril 5 plt'n1o lnt n ilctio o5 ?ara 10 Subnrission :I report tc, Ad,udicoting Authority rn case of rrpayment plan end prcinaturcly Prra Srrllnrissi0n )f reirort ro Atl,rilil:irl lt,, r\lrit{rr;t',, li",r ;r disclritrge or ller. irl rcl,rt ion to tirr' rii.lr:s trti,Ilr(tirtil iI lir" fcp.ri'nrr.nt I I rll .4L-
negularion -fifrji v;a"ri";; o*.*; terrns ofi contracr or trJDsJctjo tnvolv Nor Applrcat)lc. the guarartror 'I'herc is no oner.Jus cootract as L,l.llo\v
Rcguration r :a )6i;i;;1cGij;;;.r.,r",j assct.s and excluded debts oflhe gunrJDtor.
negut:lrrorr I 7(i;1ri;rnJ lol' thc dtscltarge *J.-,ri.,. t,,,' .r t t nt ,,, ,r y.l,*rrr,.nii .rr of the guirintor
n*e,,t"rion I z(ZXri;;d;;;;i;of; ol pirrt Irrcluded Snrt. uusna Ntoharnii",d of the assets of hc guarantor aiong S"ij;t;;i witlr rhc modc and pr'opostrrgto sc.l thc irrrrr_-ov.,hlc propur.:y. rncnner ofsuch
Reguhrion l Z(2[I] silc nce iC t,4rrDl,._,hir dispusil ofaDy funds of tl)c guarar)tor",lr,;rt,iric,r ". Srrrt. llusn.r ;rloh.rnrrric .j S.r.f J. rror iruur. anY ovrocd businL'ss, Herrce
nesutar,on lZrlc). -";rtG;t." mo(ltn(ittion of any ; e;,ra of tle r"pa.1^iffiii sccurity intcresi
Regularton t7(2)[d] ;;d,rcri;;i, d; an)ounr pryilble to crcditor @1 135lakhs pius llRp coss at actuals j ata,n.t claim of Rs. 18,77,62,122.zO/- fronitn"
nerur,,trcn t76(.r: cr,.,ieE-*rir_gi7 crcditors. .rrry bfL,)clt of r debr drrc fr.or:r thc grar.rrir,rr @i ' 135 lakhs against ctairn' qs. oi
Rcgrlation 1(2!fi*"f ,n-ri*i, terms oFrepay,renitf* Includctl r*:lffihr-#'"d'."jr--l ofany debt rfuc frorrt
Rcuui3riou t zJZ.l1glp*r o-rt,-" '''''-. ii.o;;oi loclud€ri \.J jl r\r:.,I.l .. rxc,8u:rr.rntor to hc useLi [oI thc l, ,,:::.....r i:. : rr .:, replynrenr ahyowned uftherJebr, and rhu m"n,,". of."t.rl"iing business, Hence no income
Rcgutatron r7(aJh)i;;;,rr". run i hr kj for tlle plrrpose ;;"h Prr.r +.6.2, ,r.6 3 oiiire;"r"r;;;irL; frcpaynrcnr to cr-editors, iind notso rnp"iA n, tt," .apaltnent plan, are to be dealt lvith",r,1oiO,o . l llu\ .r MohinjrnitJ Sir(liq, .-.-.)ql]l t.Jror request --l 6 tlonths to 9 months. bitnk to I least L,rt{.n(l rI]\. ,;)ir! I.llr ;.;1.,r lr :jl . I hcreby declare th;1f I have l.cJrl f'rrrrLrrarioo;; _";;:;;:;:';il.1,,",1i;:;;,:lii,ll;"::,1,,;,;,1;l.ro,,(,,,i,,.,s 1.r;,,ini,(,,:,,1 Iiep.l-vr)rcol PlJn .l lr: IlrL . ' r . I tir rrl,L,r (lcLlilre th.rt tl)e t{cl,.ryrrc l-.r,,.r)(l uonr()rrnst,r,ru,,,ar",,ui,r,1ll.ll'l:rrrirlrrllnr'1)rltI!ir(rrllltrrriil iri(''.rii,)r\ r,r 'i,, ,ii.rrl,r.rrrr ",' _'1"'Lrrl)!nts'li'::)'i) Jl.r,tli)l Lr(jrir. ti 't.,(:lrr'(l lr!'ll)r' lr.:,rl!', r)ii , tlrrrr;ir r;,r,
The RP has hled his report dated 31.O8.2024 on meeting of creditors on Repa),.rnent Plan. As per the said report, the details in relation to conduct of Individual Insolvency Resolution Process of Personal Guarantor. the amount of
claim admitted by RP and the details of expenses incurred in the Individua-l Insolvency Resolution Process are as under:-
\,. t)ti'lAtt,s t\ lilll.A'l'loN 'l"o coNl)u(-l'ol' INI)lvll)tlAL lNSol.vt:N(l)'
Thc details in relation to conduct of lndividual Insolvcncy Resolution Process of the Personal Guarantor arc as followsr
InlcriIrr Vorrt{Jr'iurrt ol lrrdiriilLral lus,rlrertcv 10.01.2024 Resolution Proccss and appointne[t of Rcsolulion Professional under (ordcr rcceived section 95 oflnsolvency and Bankruptcy Codc, 2016. on 20.01.2024)
Ilcsolutior l)roccss ol thc I)crsonal (;illrrnlor llnd ilpli)ir)l,ncnl ol ( r\ ll' Vil]ccta \,lahcshrrur'i as l{csolLrtion l'r lcssionirl ol tl)r I)(ls()trirl (;lrir|lrnt()i (i)rnr cnccrncnl ol lndir idull Insollcrrcl l{csolution l)fo!c\s lrni appointment ofRcsolution Pmfessional under scction 95 of lnsolvency and Bankruptcy Code, 2016. r.(lR) t'o. t73i,
PcIsor:ll (iulr!ntor nllcl lpprrinlnrcnl ol ( A Il) ViDccrir \,1uhcr)rxa:'i rrr j'()li'ssiorlal ol lhc lJcrsortnl (iuir'llnlor lo l() \urious rc,lulltof\, .rLrllr Iitics Iirr iniiirti,rn ol Irrr!rr iJtrul Ilcsolution l'r{)ccss ol- llrr I'crs{)irill (luiurinl{)r
(a)call upon the creditors to submit their claims or; and
(b)particulars ofthe resolution prufessional wilh whom the claims Ere to bc registcrcd: and
(c) provide the last dslc for submission of claims, \rhich shall bc 2l days
In the matter of: M/s. Texon Global Private Limited Page 14 of28
.:. 'l h! nnmunt of clrid lr.lmi.lcd h! Resoluli,)n l'.of(r\n' n!nrc{sund.r: Sccuril) inle R\r. il rnt. st. ( lnincd (l{s.) r\dni(cd (l<3.) i. rcspccl of \uch clain lliahi Cannra llnnk a,7 ,62,1 21 .127 t00v. u.7 ,62,1 21 [],71 ,62,t 21 |to,t\ vt,
RESOLUTION PR(}CNSS
Thc tbllorvina orc rhc list ofvarious expenses incun1jd by thc RP incurrcd tow:r.ds ongoinS IlRp ol lhc Personal Cuarantor.'fhe following lisr ofcxpcnscs huvc becrl prrsentcd ro thc crcdilors in ihc Mccting ofcreditos as undcr: ci'\e thc:!Dliur11 *helhcr in thc nsture oflegal cxpenses, profcisional l'ces ofRI'or olhcr cxpcnses bc incurrcd. rhe said amount shall tc complclely bomc p€rsonal gueranlor. 't"he crcditors took notc ofthc samc and rcqucsacd to put lhc rcsolutiod lbr c-voling.
'RESOLVED TllA'I' thc approval of crcditors is bc ard hercby givcn ro poss, dpp.ove 8nd ralify the rcmuncralion of RP, e<penscs incurrcd by hct in tenns of public annouic!'mcnt. lcgul cxpt]nsc alld orhcr out ofpockct expemcs ofRs. 6,66,260/-.
'RESOLVED FUR'IIIER 'I'H,/\'I (hc remuncrsrion of Rs. 5,0O,00O/- excludina CS'f and oul oI' pocket cxpcases actual bssis will bc psid to Rcsolurion Profcssionrl CA Vinccra Mahcshwari".
'RESOL\/ED FURTI1ER THA'r thc said cxpcnsca of Rs. 6.66.260l- shsll constitute lndividual lnsolvcncy Rcsolution Proccss costs,"
tN L47a(AIJ][.I|2024
13. The most facts of IA/ 1478(AHM)2O24 are similar to IA/1413(AHM)2O24. Hence, for the sake of brevity, we a-re not repeating the sarne here. Others facts of this IA are as under:-
L The 3.d meeting of creditors was held on 71.07.2024 wherein the Applicar-rt presented the revised plan before .+' '\/
the creditors. The Personal Guarantor had offered Rs.95 Lakhs plus Individual Insolvency Resolution Process cost at actual, which according to the creditors was 1ess. Hence, the creditors granted further time till 13.07.2024 to the Personal Guarantor for submission of the improved and revised repayment p1an.
II. The 4tn meeting of creditors was held on 19.07.2024 wherein the Applicant informed the creditors that the Applicant received the revised repayment plan on 13.07.2024 which is not in compliance with the provisions of the Code.
III. The sth meeting of the creditors was held on 22.08.2024. In the said meeting, it was decided to grant one day's time i.e. up to 23.08.2024 to tlte Personal Guarantor for submission of improved and revised plan. In pursuance to the same, the Applicant received revised repayment plan through email on 23.08.2024. Thereafter, the revised repayment plan was put for e-voting for the approval of the creditors on 28.08.2024. The voting was concluded on 3O.O8.2O24 wherein the creditors approved the repayment plan
with 100% voting share. The copy of 5ft meeting along with e-voting is annexed as Annexure-K.
IV. Accordingiy, the Applicant prepared the report dated 31 .O8.2O24 in relation to meeting of creditors.
14. Since some pages of the Revised Repayrnent Plan dated 23.O8.2024 were not legible, a tlped document under inward diary no. D.D.353 dated 23.09.2024 was {i1ed which was taken on record.
15. As per the Repayment Plan dated 23.O8.2024, the Repa5,tnent Plan Amount and Payment Terms mentioned in Clause 4.2 are as under:-
Particulars Amount (Rs.) Payment Schedule Resolution Process Included in the proposed Cost repayment plan Payment lo Creditors 1,75,00,000/- 6 Months Nole.s lotul repoyment plan amount of Rs.175 Lakhs excluding the IIRP cost at actttal.
t6. As per Clause 4.3.1.2 of the repayment p1an, the estimated resolution process cost is Rs. 13,00,00O/- approximateiy.
t7. As per Clause 4.4 of the repayment plan, the proposed instruments for infusion of funds and its source are as under:-
Source of Funds Amount (in Rs.) By dispose/sale of all immovable 175 Lakhs property/borrowing from Jiiends and
relatives Total 175 Lakhs
Il is Jurther clarified that the amount shall be realized from the disposal of immovable property of personal guarantor. The PG, in consultation with resolution professional, will put lhe asset for sale in open market and reolize the proceeds. In case of no one from open market olJbr the expecled value .for the sctid properly or no one take interest lo buy the properly, lhen in that cose, debtor/guarantor will dispose the asselli through sale to the associate person of guaranlor as defined in regulation 18 oJ Insolvency ond Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporale Debtors) Regulations, 20 I 9.
18. As per Clause 4.7 of the repayment p1an, the Terms and Conditions of the repayrnent plan are as under:-
4.7.1The proposed payments to creditors as ahoye have been made based on av ai I a I e i nfo r m at n.
4.7.2.'I'he Repaymenl Plon amount and proceeds from sale of immovable property of Debtor/Personal Guarantor will be deposited on or before the date specifiedfor payment of the Repoyment Plan amount, in a bank account oltened hy resolution professional in the name of Shri Sajid Mohammed l,'arooqui in IIRP, ttith inJbrmation to the (:reditors and the sane shall be disbursed among the credilors as per terms of Repayment Plan. The said account will be closed on complete implementdtion oJ the repayment plan.
4.7.3.Any distribution of the Repayment Plan amounl so deposited shall be made by the Resolution ProJbssional within I yeor from the dute of approval oJ' repayment plan by Adjudicating Authority under Section I ll ofthe Insolvency and llankruptcy Code, 20 I 6.
4.7,4. Shri Sajid Mohammed Farooqui is not haying any income. Minimum amount required to cot)er the reasonable expenses shall be taken Jrom family members. Ilence there is no amount to be reduced from the propo,sed repayment plan towards such minimum budget.
4.7.5.If in the opinion oJ the RP, the Gudrantor hos failed in the implementation oJ' the Repaymenl Plan, the RP shall within 7 days ofknowledge of such failure, Issue a notice lo lhe Guorontor identifying such failure and requiring lhe Guarontor to address the Jitilure, If so possible and provide an explanation for the failure within ./ifteen days of such notice.
19. As per Clause 4.8 of the repa5rment plan, the Superwision and Implementation of Repa].rnent are as under:-
1.8. Supervision and Implementation of Repayment Plan
The debtor proposes this repayment plan to settle the &te of the creditors within the period of I year. Upon the a1:proval oJ the Repayment Plan by the Adjudicating Authority, the resolution professional shall supervise the implementation of the repayment plan as per Section I I6 of the Insolvency and Bankruptcy Code. 2016, the Resolution ProJbssional may apply to the Adjudicating Authority for necessary direction(s) in relation to any matter arising under the repayment plan.
20. As per Clause 9 of the repayment plan, the Breach of Repayment Plan is as under:-
9. Breach of Repayment Plan
9.1.1.However, in case of any delay in payment as mentioned in this repayment plan, beyond the aforesaid I year, respectively; a grace period/cure period of further 3 months will be available to the guaruntor/ the guarantor with o penal interest oJ 60% per onnum on the outslanding amount.
9.1.2.If in the opinion of the resolution profes,sional, the Debtor/ Guarantor hos .failed in implementation of the repayment plan, the resolulion professionol shall, within three days of knowledge of strch.failure, issue a notice to the guarantor or identifi.,ing the failure and requiring him, withinfiJieen days of receipt of the notice lo-
a. Address suchfailure if it can be addressed, or
b. Provide explanations for the Jitilure.
9.1.3.If the guarantor, within the period speciJied as above,
c. Addresses the failure in implementation of the repayment plon, or
tl. Provides a sdtisfactory explanation for such failures, The resolution professional shall report the failure to creditors within seven days of the date oJ failure addressed or explanations provided.for such.failure.
9.1.4.In cases not covered in aboye clauses, the resolution pro/bssional may opply to the Adjudicating ,luthority under sub-section (2) of Section I l6for directions, if he is ctf the opinion lhat failure will alfect the implementation of the repayment plan.
9.1-5. "As per the provisions of the IBC, iJ the personal guarantor has failed in the implementation of the Repayment Plan, the RP shall, within 7 days of knowledge of such failure, is.yrc a notice to the Guarantor ond the deposited amount shall be.forfeited and bankers have full liberty to start the frei\h process Jbr recovery ".
21. Scanned copy of the compliance of Section 105 r.w. Regulation 17 of IBBI (Insolvency Resolution Process for Persona,l Guarantor to Corporate Debtor) Regulations, 2OI9
a-re as under:-
lhrtldrrru fulltatl f l!d.l{ dlhr Co.,l. Coarplhrl coxnrtonl on (rmrlll!x(t ornd s(ttrn i[I {mJ'f,il,ffio;,iiir L, *y (trnpiod lkrl f,llld Hohrrrtnal l*rrxrlul rlu rrrt autlx|ltt ot rtrlulm lh0 toyrlutl0 luvo olry rrwnd llrlrrrrr, llrtrtc llrrl Ptlldtlorul lo (try rln tlrrr rlchtl/r ,lppllmIl., lutl$n 0rIrqlco{ hlr burlrrtr rrr lo }{r luttlal l:rflll,lE Ilcl{0r !ul}ro,larl tltr l{mllutlrrn n,Ir$lorrl lo nrlh0lhourrtr $tthi, Itrrlntkrrr,tl to t li/r, lllrr agctr rrl lhc rlrhon UcIrtrrr, r(t100 ltro rr1,;ryrrrenr-i,liii .105(l){r): mry ,lulhntlro of tr{irtirr lh(, rflr,kt rn Crxnlllnl lt:r t 1,? ,L,4 .1 ul tfif 1,ply1trr1l Iruhrrl0ttal t0 J(lntlrrlrlcr rrr rltrlrrrcol,rny lrld,t rrh ol lho r.lchtur ixrtrrn l!(,r)^Jr";tui;;i],i; (irtnpllnl I'r ru 0l lllr' rlHll kKtu(lc JurllflfJtl0n f0r 7rp.rynrr.fll Il,rn lrnlur.t r!l oI rrxh mlulmclt phn .rrxl truunr on tho lurlr.rrlwhlch thocter.lltoff lltJyil{trl up}n lhr DLD, s+<tt,rn tosltltij-[i rolufi,.r,i j,ri Cnn;;rllnl Thc rh.lll lrxirrdc ltr0vlrlon fur l,cnotlrt C,ri u" lrrf *"f ,, f"ry lHyntclt I.f fcrr lhr rltxxtnl l{)woftlr lln{ l l(! thc rr(olullon profat(l(,,Ltl ll n l'r0(c1( &rll ,ll uflu,lir, Tlte nf0frjJ,{l iltlr}lrll lnrlurlr: thc p.ryrncnl ol ,r{,t lt) th. luololhrr profcsrkrnrl. ffont 4.i I ol tlr rcpuyncnt plon! Thc rnl pltn rh;ll lhr trtsuhrton r7(t j(r;Iihi-T?fr'*,rr rrrc Cornlrllcd Rlkrcnco Itnrtlorl;rrr rrllrlrlcnl plrn anrl ltr lnrplcmrntrtkltr l';ru lJ Itr'lryrnunl---Tfr-rchsltrh, l*ludlnl ltr rmounrr to [x Amount
rcrrld snd drtcr of rsprylnerl lo (rRlit0rr ar l',ry,ncrtT(rmr _-f'rl n .li) l)lrtrtlrulk)n il Cla,sultr/ C,nl uI' t'rD 1l implamcnt,l ori rrtatuh Rc(uhtlon I ' l7(l)[b], the rounc rrl {und, Compllcd I c/e rtnco Irarllculro tlt.rl wlll k urrd lo pJy rrrnlution 1rrtr$s Prn,l,3.l.5 rtortty rnr-Tiif conrind thdt ru(h prymrnl rlulltrc mlde rcr0lullun llnxrrr h lrlorlry oYff!ny cr(rlllor r.otl
I . -ton l?( (c)r r m lnl mum hrdpr lor -- tl|| mPrYnot Pun I ITfu-r 3c*dhrr 1,71 ol I rh duntlm of th npFndrt pln to rotr I thc nlprublo lrpcnsr ol tho Furrntu I ld nrmhrr o(hk lnml,tlrl0 hnillyl0 lh I ertcnt thcy m drpcndent on hlrn pmvtduJ lcn pcl(tnl ol thc nrllnble, I rUt * tcsr lncomcof thc gurmntor full h utlllarJ for repyocntoftlrb,u I Rcgql.,thn I7{U(d}: lin:nlng rqulnrl fnr Compltrd Prn 1,4 ofnprrrncnt dan lnrplrmcntrtlon uI lhe nprymcnl pirn R?gulilion l7{l)(e]r II tht gurnnlor lrr, I irfuhthn ,7(l)(c)r lf lhe Sulnntor brr uy lulncs, the m,rnncr ln uhirlr ll il rny burlncs, lhe mrnner tn which lt ll thcpC.,onorl propooed to h conductd during lhe rounr ' to h ronJurld dun4 $e b-;;;;"'lprolutcrl o{ thc rcpymcnt plan, lnd lhc role of tlt rourr o( the rcprymrnt plrn tnd th'r trirr*| | ruulutlon pnrlesrlonrl prerril roh o[ the tuolulion prolatlioruJ I llenrs,Nol Applimhh I I llquhtion l7{lJ(tl:rhe mrnner in rvhlch tomplrrrl ] hB{,7,2,4 7-10lthcrcfrfmcnlphn -lunds held for rhe puryosts ul' rhc rtlurmcnt phn irvosterJ orothrnr4sc dr:llwilh. ptnijlnn tcp;rtrntdt t0 (rfiljtom flqrdrtion l7{t)(dr rle fumtlons ComplirrJ llclcronrc PlrtioLrs trhich uc to k undrrutrn lry thc l'rn {3 Iti'lrilru[on to tstulutlon profcsiunrl lxluding Clllmanb/ [rerlitnrs supcnlslon rnd lmplcmenrUon ol Ur Pan,l.6 Tnrulrror rrlcolollor re;uymcnt phn p.lrt of he rsttts o{ ilre furnnlot
l'rrr {.tJ SupoMllna lnd lmlrltmcnbtiun ol Rcprynrenl Phrr hn5 lmpkmcntltiun adions Ptn l0 Suhmblon uf reprt to Arljudklting ilulhonly in ruc of tcpaymrnt pbn cnd pr emrtunly
l$elbr lf(l][b): niltloo olanroul llotitpflhbla !ffard1 i$ grtt 6 lflrfiio[ lowlyt$ ll no oomur wnEnl 2t okff' fujunntr Ilcn n$rurtoltT(r)tFE urs nd wlulal dcbu o{rfu Sunnror mphiont{tlillffiffiirnr lln ll oftir repymtnlPbr hr th dirbrf ol rir $rnnlor tlcldlcrlnl Irsubharailffi rrurlliio-P;n1.6o[ rryrpncnlphn rp,ut of th rstu of fi e Br.unatordong ri$ th rnodead ffnncroflrrh srle ftryuhtl06 t rlr]Fl rA'mlnffii,fi; Prn,l.7,? ulrrpprcnr phn dhosd otul Iunds of frc $rnmor sctdrtroa rrt2)(c); lGhilil; hn 6 oltfie rryuimcnl pl.:n modliotloi olmy rodty lntcrtrt BrpL&n t7121(d); nd ucrionGTi TIe l[ hu olfurd phn roqril F),Iblc to mdltorr rrpyrncnr oili 75 l^rLis arrludinX lhr JlRp (ortJ rpirrt rl:nn ol Rr lB,77,Al)Z? 70/ lrcn kr (nr,ilon n fuhdo, I 7f?ilc}.ruilffi;il;i; nc Pc t u orrra nrybrtxh cl I drbr due fmm Oc gtanilor rcpfrilfhn7xr I?5 bkfu arlding rh, l,Rp(or6 rg jffi rlrira ol Rr 18,77,6?,t27.?Al hon the rrditua s.guhrton I7(?](0, modilEm];m urau ol rqtpcnt ol any dcbt due fmnr tkgnnltor, lcsdr rton, 76{rtm'm;fr ffi;; l'na ll * olrm nilil$ih-iffi ihc nrinnlor lo h u50d lur Oc nprymcnt of tle d*Lrnd Ihc nunncr ol akuhrlng 0r lrolnc ol tlc gu,uonlor RrEdarhn,ri4{h)lifffiffi Prn t.7 a r r: orrilnffiilGrri fulds hdd lor t]rc prpor of reprymcnr ro cndjto[ rnd i{tro trpidrt thc cndol tlr an to [rdoll*iti
The RP has filed the report dated 31.08.2024 on meeting of creditors on Repayment Plan. As per the said report, the details in relation to conduct of Individua_l Insoivency Resolution Process of Personal guarantor, the amount of claim admitted by RP ald the details of expenses incurred in the Individual Insolvency Resolution Process are as under:-
\,. D!:'I'AIl,S tN IiELATION I'O COi-t)L,Cl OF INt)rVII)L],,\t_ ti\is()LVn].'Cy RESOLUt'tO\ pRoctEss ot-.I'ltft pl.tltsoNAL (; t.r/\ll^ N.t.oR 'I_hc dclails in rclation to ctxduct of ItrLlividua) lnsolvcncy l{c:,olulion I)roc!ss ol thc l)crso}1al (itrarantor arc as lbllo\ s:-Rcsolutio, Process and appointment ol Rcsolution professional under (order received section 95 oflnsolvency and Bankruptcy Code, 2016. on ,2024) Resolution Process of thc Personal Cuarantor arld appointmenl of CA li Vioeeta Maheshrvari as ResolutioD professional of thc pcrsonal Cuarantor appointment of Rcsolution Professional under scctiod 95 of lnsolvcncy and Bankruptcy Code, 20 6. of Individual hlsolvcncy Resolution proccss Pcrsonal Cuamntor and appointmcnt of CA Ip Vincela Mahcshwari as
(a)cell upoD rhe creditors to submit rhcir craims or; and
(b)psniculals ofthc resolution professional with whom lbe claims are to be registcrcd: and
(c) provide the last date for sutlmission of claims, *hich shsll be 2l days from the issue ofpublic norice.
.l l he.r'nount of(1.;n' :rdrni cd b\ Rcs,,lutiun I,rif.\ri,,r,,t arc,\ unrtcr: SI. Sccurir-r' intcrcrt, if ,nv. \'r)ling Clximod (Rs.) r\dtrlittcd (lts.) in rospcct 0f such cl{inr IliIht Canara llank .62.\ 7'7 t4,77.62,111 \o 100"/. 't ot!l 14,17 ,62,127 ,62.127 10{r,/o
nE-I'Au, OF EXI'[:NSriS r\Ctir{ttEl) r\ 1.Ut: lNt)lV )(_,\l_ NS()l_1,t,- }.'(.\, RESOr_til rO\ PRocuss
'rhe following arc lhe list of various expenses incurred by rhe Rp incurrcd towards ongoing rRp ofrhe Personal cuarartoa. Thc following list of expenses have bccn prescnted to the crcditors in thc Mceting ofcreditors os under: 2500 - OLrl ofpockcr in the nafure of legal expeDses, professional fees of Rp or olher expenses bc inc*rrcd, tire said amourt shall be completely bome by personal guaranlor. Thc creditors took note oflhe salnc and rcquested to pul lhc rcsolution firr c-voting.
'RBSOLVED TIIAT the approva, of crcdilors is be and hereby given ro pass, approve and rstify lhc rcmuncratio, ofRP, expenses incurred by her in terms ofpublic aruouncemmt, legal cxpcnse and other out ofpocket expenses of Rs. 12,56,260/-.
"RDSOLVED FURTIfER TI{AT the rcmuneradon of Rs. |0,OO,0OOA cxcluding CST and out of pockot expeoses 6t actua! basis will be paid to Rc,lolution prcfessional CA Vincera Mahcshwari".
'RESOLI'ED FURTIIER.'fIIAT thc said expenses of Rs. 12,56,260/- shall constirule tndividuat Insolvency Rcsolution Process costs."
oa It is seen that during the hearing on 14.10.2024, Ld. Sr. Counsel for the Personal Guarantors has requested to submit new repayment plan by tomorrow along \.ith upfront payment and sought adjournment of one day which was
lA/7413{AHM)2124 in CP(lB) 173 of 2022 With
allowed by this Tribuna-l. However, during the hearing on 16.10.2024, counsel for the Personal Guarantor stated that their clients would stick to their previous repayment plan that may be approved. The said order dated 16. lO.2O24 records as under:-
"It is seen that, on 11.10.2024, Ld. Sr. Counsel .for the PG requested to submit new joint repayment plan by the next date along with the upJiont amount and sought adjournment Jbr one day. It was orally agreed to deposil Rs.35.00 Lacs as upfront amount ytith the Bonk olongwith the repayment plan. Ilowever, neilher any proo;f of deposit of upfront amount ha,s been placed before us nor conJirmed by the Ld. Counsel for the PG lo haye been deposited with the FC. It has been apprised by the Ld. Counsel Jbr the FC that only through e-mail, one letler oJ revised repayment pLan submitted only at 07;18 PM yesterddy u,ithout any upJiont amount. Mr. Jai Ram, Chief Manager and Mr. Chandra Shekhar, Ltrw O.f.ficer oJ the FC Bank submitted thot since this letter was received ctfter the banking hours and it ytas not responded. It will be communicaled today and the olfer given in the repayment plan is nol acceptable to the FC in the present form without up.fornl amount. Ld. Counsel Jbr the PG, on instructions from clients, stotes that since the new repayment proposctl is not acceptable to the FC, their clients will stick to their previous repayment plan that may be opproved".
In the above backdrop of the facts, we have heard the counsels for the Applicant/RP, Personal Guarantors and Financial Creditor and perused the records. At the outset, it may be stated that when the RP convened a meeting of the creditors for the purpose of voting of the Repayment Plan of the Persona-l Guarantor, it was always open for the creditor to either accept or reject or even suggest modifications in the
repayment plan. In this case, the revised repaS,nnent plan of Shri Husna Mohammed Sadiq (Personal Guarantor-1) and Shri Sajid Mohammed Farooqui (Personal Guarantor-2) were approved in entirety through e-voting on 3O.O8.2O24.
25. For the sake of ready reference, we reproduce Section 111 of the Code as under:-
"'l'he repayment plan or any modification to the repoymenl plon shall be approved by a majority oJ more than three-Jburth in value of the creditors present in person or by proxy and voting on the resolulion in a meeting of the creditors ".
Since the creditor has approved the repayment plan with 100%o voting share, keeping in view the provision contained in section 114 (1), we are passing an order on the basis of the report prepared by RP under section 106 of the Code which conflrms that the repayment plan is in compliance with Section 1,L2 of lBC,2076.
27. The Resolution Professional a_lso submits that the Insolvency Resolution Process for the Personal Guarantor has been conducted in compliance with the IBC, 2016 and other applicable laws.
Accordingly, we approve the repayment plan with effect from the date of this order, with the following directions:-
The Resolution Professional shall supelvise the
implementation of the Repayrnent Plan as per the terms and conditions mentioned therein and file his final report soon after the implementation of the plan or upon completion of the timelines mentioned in the plan, whichever is earlier.
b) Upon completion of the Repayment Plan, the Resolution Professional sha-ll comply \r'ith the provisions stated in Section 117 of the Code.
c) The creditors shall withdraw a,11 the legal proceedings before various fora against the debtor within one month of the fulfillment of repa;,.rnent obligations by the debtor in accordance with the terms of the repayment plan.
In the event of a maximum 30 days' delay for any unforeseen circumstances, gralting a grace period shall be within the jurisdiction of the implementation committee to waive without declaring default.
On full implementation of the Repayment Plan, the Persona,l Guarantees given by all the Personal Guaraltors shall be released by the Financia-l Creditors-
The debtor is permitted to share a certified copy of this repayment plan and order of this Tribunal approving this repayment plal with third parties including statutory/government authorities wherever needed.
c) The approval of the Repayment Plan sha1l not be construed as waiver of excluded debts as defined U/s 79(14) if any.
h) The Registry is directed to send a copy of this order to IBBI.
The Resolution Professional, the Applicant herein shall for-ward all the records pertaining to the Insolvency Resolution Process against the Personal Guarantor to IBBI.
With the above directions, IAl1413(AHM)2O24 in CP(IB) No. 773 of 2022 and IA||478(AHM)2O24 in CP(IB) No. 165 of 2022 stand disposed off.
30. A certified copy of this order may be issued, if applied for, upon complialce with al1 requisite formalities.