Prasad Dharap vs DPSCO Consultants Private Limited & Anr.

Per: Deep Chandra Joshi, M(J) and Banwari Lal Meena, M(T):

The application IA(IB) (Plan) No. 2/CB/2024 is filed by Mr. Prasad Dharap, Resolution Professional (hereafter 'RP/Applicant') of ECOMAISTER BEADS INDIA PRIVATE LIMITED (hereinafter 'Corporate Debtor/CD') bringing on record the Resolution Plan submitted with respect to Two Units of the Corporate Debtor situated at Angul (Odisha) and Raigarh (Chhattisgarh) approved by Committee of Creditors (hereinafter 'CoC') under Section 30(6) of the Insolvency Bankruptcy and Code, 2016 (hereinafter 'IBC/ the Code') read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations, 2016 (hereinafter 'CIRP Regulations/Regulations') seeking approval of resolution plan u/s 31(1) of the Code as approved by the CoC u/s 30(4) of the Code. The applicant has also filed IA(IB)(Liq) No. 2/CB/2024 under Section 33(3) read with Section 60(5) of the Code seeking direction to initiate Liquidation process with respect to the Bellary Unit of the Corporate Debtor and other assets of the Corporate Debtor which do not form part of the Resolution Plan

We have heard Mr. Sandeep Bajaj, learned counsel appearing for the applicant along with learned counsel Mr. Vipul Jai and perused the records.

The Corporate Debtor was admitted into CIRP vide order dated 15.05.2023 for a default of Rs. 2,60,98,019/- and Mr. Prasad Dharap was appointed as the Interim Resolution Professional (IRP) of the Corporate Debtor in conformity with Section 16 of IBC.

In compliance with sections 13 and 15 of IBC read with Regulation 6(1) of CIRP Regulations, the IRP initially published a public announcement in Form A on 17.05.2023 and subsequently upon discovering assets of the CD across three different states the applicant issued another public announcement in Form A on 19.05.2023 in (i) Central Chronicle (English Newspaper)- Bilaspur Edition, (ii) Swadesh (Hindi Newspaper - Regional Newspaper) - Bilsapur Edition, (iii) Bhaskar (Regional Newspaper) - Angul edition, (iv) Business Standard (English Newspaper) - Angul Edition, (v) Udaya Kala Hubballi (regional newspaper) - Bellary Edition and (vi) Times of India (English Newspaper) - Hubballi Edition wherein the last date to file claims against the corporate debtor was mentioned as 29.05.2023.

1st CoC meeting was held on 14.06.2023 wherein the applicant informed the CoC that it has received claims from 2 (Two) Financial Creditors and 38 claims from other category of creditors out of which 11 were received after the deadline and placed on record the list of claims that were received and provisionally admitted, subject to verification. The applicant in this meeting was confirmed as RP as per section 22(2) of IBC,2016. The applicant, within the stipulated time as provided in Form-A, received claims and the applicant as mandated by section 18(b) read with Regulation 13(1) of CIRP regulation collated and provisionally admitted the claim and prepared a list of creditors as required under Regulation 13(2)(d). Subsequently the CoC was constituted u/s 21(1) read with section 18(1)(c) of IBC,2016 with two Financial creditors and as per regulation 17(1) of CIRP Regulations a report certifying the Constitution of CoC was filed before the Tribunal in IA(IB) No.263/CB/2023. The voting composition of the CoC was as follows:

2nd CoC meeting was convened on 07.07.2023 wherein the CoC approved the publication Expression of Interest (EoI) in Form-G, and the Eligibility Criteria as per Section 25(h) of the Code r/w Regulation 36A of CIRP Regulations was discussed and approved. The CoC also in this meeting approved the appointment of 2 Valuers each, as required under Regulation 27 of CIRP Regulations, for each category of assets to provide valuation of two categories of assets i.e. (i) Plant and Machinery and (ii) Securities and Financial Assets, of the Corporate Debtor.

14.07.2023, the RP as per Regulation 36A (1) of CIRP regulations published Form-G i.e. Invitation for expression of interest in Central Chronicle, an English daily (Bilaspur Edition), Swadesh, a Hindi daily (Bilaspur Edition), Business Standard (English Newspaper) – Angul Edition , Odisha Bhaskar (Odia News Daily), Times of India (Hubbali Edition ) and Udaykala (Hubbali Edition)an English daily and the last date for submitting Expression of Interest (EoI) was 29.07.2024.

3rd CoC meeting was convened on 16.08.2023 wherein the applicant informed that the Prospective list of PRAs, who has submitted EoI in response to Form G dated 14.07.2023, was published on 08.08.2023 and the Final List of PRAs was issued on 23.08.2023. The final list of PRAs are as follows

The CoC expressed its view that looking at the specialised nature of the business of the Corporate Debtor, it is imperative to have prospective resolution applicants who are from the industry as only then it will be possible to successfully resolve the Corporate Debtor and resolved to re-publish Form G in accordance with section 25(h) of the Code. It was decided by the CoC members to allow these seven PRAs, included in the provisional declared by the RP in response to first Form-G, to be included in the provisional list of the PRAs to be declared in response to the Republished Form G. Thus, it was decided that it will not be necessary for these seven PRAs to resubmit their documents for expression of Interest. It was also decided that the Information Memorandum prepared by the applicant as per Section 29 of the Code will be shared with the CoC members after receiving their undertaking of confidentiality.

On 24.08.2023, the RP as per Regulation 36A (1) of CIRP regulations re-issued Form-G i.e. Invitation for expression of interest and published it in Central Chronicle, an English daily (Bilaspur Edition-26.08.2023), Swadesh, a Hindi daily (Bilaspur Edition-25.08.2023), The Statesman (English Newspaper) – Angul Edition, Utkal Mail (Odia News Daily-), The Hindu Businessline (Bengaluru Edition-25.08.2023) and Prajavahini (Karnatak Local Edition-25.08.2023) and the last date for submitting Expression of Interest (EoI) was 09.09.2024.

4th CoC meeting was convened on 25.08.2023 wherein the applicant informed the CoC that he has received 2 more EoIs from (i) Shanti G.D. Ispat and Power Private Limited and (ii) Galactico Corporate Services Limited but the applicant upon verification of EoI has only added Shanti G.D. Ispat and Power Private Limited to the existing list of PRAs. In this meeting the Evaluation Matrix (EM) as required under Regulation 2(1)(ha) of CIRP Regulations and Request for Resolution Plan (RFRP) were discussed and approved.

5th CoC meeting was convened on 25.10.2023 wherein the CoC resolved to seek extension of 90 days as the CIRP period was due to expire on 11.11.2023. This Adjudicating Authority vide order dated 20.11.2023 in IA(IB) No.342/CB/203 wherein the CIRP period was extended till 10.02.2024. The 6th CoC meeting was convened on 30.11.2023 wherein the applicant informed the CoC that request was received for extension of last date of submission of Resolution Plan, which as per Form G was 10.11.2023 and as per the approval received from CoC by email on 9th November the last date for receipt of Resolution Plan was extended to 30.11.2023 but the applicant informed the CoC that he has not received any Resolution Plans yet and the CoC was also of the opinion that any further extension does not increase the possibility of getting resolution plans.

The applicant also informed the CoC that in pursuance of his conversations with PRAs, it has come to his knowledge that some PRAs are interested in one or two units of the CD but no PRA is interested in the CD as a whole In this regard the applicant suggested the CoC 3(three) options (i) that the CoC can go for asset wise sale as per provisions of Regulation 36B (6A) of CIRP Regulations, then there is no need to republish Form G and the PRAs are eligible to submit a Resolution plan for asset wise sale and other two options are (ii) republishing Form G and (iii) running the entire process again or to vote for liquidation of the Corporate Debtor. The CoC in pursuit of maximising the value of the CD, the CoC resolved to proceed with asset wise resolution /sale as per Regulation 36B(6A) of the CIRP regulations.

The 7th CoC meeting was convened on 14.12.2023 the Evaluation Matrix (EM) as required under Regulation 2(1)(ha) of CIRP Regulations and Request for Resolution Plan (RFRP) for 'asset wise sale' were discussed and approved. The EMD amount was agreed upon to be Rs. 25 Lakhs and the Performance Bank Guarantee was decided as 20% of the Plan Amount.

In the 8th CoC meeting convened on 22.01.2024 the applicant informed the CoC that it has received the Transaction Audit from KND & Associates and it has flagged one transaction amounting to Rs.3,62,81,781/- as fraudulent as per Section 66 of the Code and necessary application will be filed and in pursuance of that an application in the form of IA(IB) No. 86/CB/2024 was filed before this Adjudicating Authority, which is pending. The applicant also informed the CoC that only one Resolution Plan was received in response to the RFRP with respect to Units at Angul and Raigarh from Shree Krishna Earthmovers (Proprietor Rajkumar Agarwal) and the same was opened in presence of the Resolution Applicant (RA) placed and discussed upon by the CoC.

The 9th CoC meeting was convened on 01.02.2024 wherein the applicant informed the CoC that the applicant has conducted legal vetting of the Resolution Plan and also checked the eligibility of the Resolution Applicant u/s 29 A using the services of one vendor named 'Signal X' and has found that the Resolution Applicant was found eligible u/s 29A but certain deficiencies were found in the plan and the RA has agreed to cure the deficiencies. The Valuation Report of the CD as a whole and asset wise valuation was shared with the members of CoC upon receipt of confidentiality undertaking.

Average Fair Value and Liquidation Value of the Assets of the CD at Angul and Raigarh as per Form H is Rs. 2.02 Crores and Rs. 1.51 Crores respectively.

The CoC undertook negotiations with the RA and suggested to enhance the plan amount and raised objections to the payments proposed to the related party financial creditors as a certain transaction has been found to be avoidable related party transactions. The RA in response to the suggestions made proposed to enhance the plan amount to Rs. 2.25 Crore and agreed to re-work the payment distribution.

The applicant informed the CoC regarding certain operational challenges and prospects of successful operation at the Angul and Bellary Units of the CD. The CoC in response to the facts laid down by the applicant resolved to take decision in regard to the Angul and Raigarh unit only after receiving the revised plan and as regard to Bellary Unit, the CoC in principle decided to liquidate it on account of the operational difficulties existing at the Bellary Unit and absence of any resolution proposal. The CoC also resolved to file the necessary application before the adjudicating authority to seek an extension of 30 days to complete the CIRP.

In the 10th CoC meeting which was convened on 10.02.2024 the applicant informed the CoC that it had received the revised plan from the RA on 08.02.2024 and the same was put to vote and was approved with (100%) Vote. The CoC also resolved to liquidate the Bellary Unit of the corporate Debtor and any other assets of the CD which was also approved with (100%) vote. The relevant extract of the minutes resolving to liquidate the Bellary Unit and other assets and the voting results with respect to the resolution to approve the plan dated 08.02.2024 and resolution to liquidate are reproduced hereinbelow:

The two CoC members i.e. DPSCO Consultants Private Limited and Extensive HR Management Private Limited proposed names of two different Liquidators for carrying out the Liquidation but both the names failed to get approved as none of the names received 51% votes as required u/s 21(8) of the Code.

The 11th CoC meeting which was convened on 10.02.2024 the CoC resolved to seek a further extension of 60 days in CIRP period instead of 30 days that was earlier resolved and the same was approved and an application in the form of IA(IB) No.80/CB/2025 was allowed by this Adjudicating Authority to extend the CIRP period to 09.04.2024.

In this meeting the applicant made some amends to the amount of admitted claims of few employees employed at Angul and Raigarh Unit considering fresh facts and accordingly the payment distribution has also been changed. The Change was voted and approved by the CoC and it was further resolved that the difference of amount i.e. Rs.13,03,185 that arose due to such amendments shall be used for patent to operational Creditors (Other than Workmen and Employees). The applicant also informed the CoC that there has been an increase in the admitted claim of Operational Creditors (Other than Workmen and Employees) on account of admission of Claim of SV Associates and the Claim of UNECO Co Ltd (Related Party Financial Creditor) has been revised but since no payment is proposed to it, the same won't affect the distribution. The revised distribution was approved by the CoC. Further, the CoC approved the appointment of Mr. Sunil Kumar Agarwal having (IBBI Registration No.: IBBI/IPA-001/IPP02430/2021-2022/13735) as Liquidator to carry out the Liquidation of the Bellary Unit and other assets of the CD.

Final List of Creditors and Claims Admitted:

* Admitted Amount was reduced subsequent to revision in 11^th CoC Meeting.

*Amount was reduced subsequent to revision in 11th CoC Meeting.

*This is a consolidated claim filed by Customs. No separate bifurcation was presented.

* This is a consolidated claim filed by Customs. No separate bifurcation was presented.

*SV Associates and UNECO Co Ltd's claim was added after plan was submitted.

** Amount revised from Rs1,44,95,151.58 post admission of SV Associates Claim

*Amount Admitted post submission of Plan.

** Amount Revised from Rs.5,39,00,780.56/-

The Revised Plan is a comprehensive financial proposal for settling the claims against the Corporate Debtor and to revive the Corporate Debtor's units at Angul and Raigarh by infusing capital and carrying out necessary structural and operational changes. The Plan proposes a resolution amount of Rs.2,25,00,000/- (Two Crores Twenty Five Lakhs).

The plan is submitted jointly by M/s Shree Krishna Earth Movers (Proprietary of Rajkumar Agarwal) registered address i.e. Bhagwanpur Road, Near Loha Dukan, Raigarh, Chattisgarh. The resolution applicant specialises in earth moving, slag handling etc. and is a key player in the Earth Moving sector in Chhattisgarh.

The SRA proposes the following payment proposal to the unrelated creditors:

Payment Schedule as proposed in the Plan:

Amt in Rs.

DETAILS OF PAYMENT PROPOSAL:

Amt in Rs.

* The said values pertaining to claims of Operational Creditors (Employees) have been taken from the details provided by the Resolution Professional. However, the said outstanding amounts pertain to a period more than 12 months from the Insolvency Commencement Date (ICD) for a few employees. Provisions of Section 53 of the Insolvency and Bankruptcy Code, 2016 require payment to be made to employees for the period of twelve months preceding the Liquidation Commencement date. Thus, in the given case, 50% of the amount payable to those employees whose amount pertains to a period more than 12 months has been reduced as adjustment while allocating payments under this Resolution Plan.

The payment distribution of employees were revised in the 11^th meeting of CoC as already observed above and the revised payment distribution is as follows:

As observed above the Rs.13,03,185 that arose due to such amendments shall be used for payment to operational Creditors (Other than Workmen and Employees).

Operational Creditors (Other than Employees, Workmen and Statutory Dues)

Angul =

Amt in Rs.

Raigarh =

This was revised after the addition of the claims in the 11^th CoC Meeting and the revised position as per the minutes is reproduced herein:

Further, the claim of related party, UNECO Co. Ltd. has also been revised. However, as no payment has been proposed to the related parties in the Resolution Plan, the distribution will not be affected by this claim.

Operational Creditors (Statutory Claims & Dues)

The SRA in its Plan has proposed that any claims. Interest, rights, liability, present or future except Gratuity, EPF and Unpaid CIRP Cost arising upon the assets of Angul and Raigarh Units of the CD up to the date of approval of the plan by the AA shall be extinguished in terms of the plan.

All liabilities (statutory or otherwise) of the Company related to Angul and Raigarh Units of the CD arising from any Contractual arrangements entered by the CD including claims and liabilities that has crystallised prior to the Insolvency Commencement Date shall stand extinguished in terms of the Plan.

Any claim against the assets at the Angul and Raigarh Units shall be permanently extinguished from the date of approval of the order, in terms of the plan.

All claims pertaining to related parties pertaining to the assets at the Angul and Raigarh Units forming part of the List of Creditors arising upto the date of the Approval of the plan by the Adjudicating Authority shall stands extinguished in terms of the Plan.

All enquiries, investigations, notices, suits, claims, disputes, litigation, arbitration or other judicial, regulatory or administrative proceedings, if any, against the assets at the Raigarh and Angul Unit, shall stand withdrawn, settled and extinguished in terms of the Plan and no new enquiries, investigations, notices, suits, claims, disputes, litigation, arbitration or other judicial, regulatory or administrative proceedings lie pertaining to the assets on the relevant sites.

The SRA has made a presumption in the plan that all CIRP dues have been paid or will be paid out of the cash flows of the Company and hence except for the payment of unpaid CIRP cost as provided in the plan, the SAR will not be liable for any liability or any claims that arise between the insolvency commencement date and NCLT Approval date. Furthermore, no interest shall be paid for any claim over and beyond what has been contemplated in the plan.

Any debt owed by the CD to any person pertaining to the assets at the Raigarh and Angul unit, which is barred by limitation shall remain extinguished.

The dues incurred by the CD from the Insolvency Commencement Date till the NCLT Approval Date if incurred in the ordinary course of business of the company so as to keep the company a going concern and not already covered in CIRP Cost shall be dealt by the RP in accordance with the agreement with corresponding counter party and the SRA shall bear no liability towards the same.

All claims against the assets of the CD related to the Raigarh and Angul units of the CD, with respect to or related to Corporate Guarantee, if any, executed in favour of any other entity, by any party, claiming subrogation and from any contractual arrangements with anybody in relation to any period prior to the NCLT Approval Date, shall be written off in full and the Corpoarte Guarantee so executed in terms of the plan.

The plan consists of two parts- one is the commercial aspect and the other is the statutorily required compliance aspect. The commercial aspect of the plan such as its feasibility and viability, the manner of distribution proposed, the order of priority amongst creditors, priority and value of the security interest of a secured creditor has been approved by the CoC by requisite no. of votes as required u/s 30(4) of the code.

Hence the assessment of this Adjudicating Authority is limited only to the statutory compliance as required under the code and applicable regulations and the scope of the assessment has been clearly demarcated by the Hon'ble Apex Court in a plethora of judgements. Hence, this Adjudicating Authority is bound by the judgement of the Hon'ble Supreme Court of India in K. Sashidhar vs. Indian Overseas Bank and Ors. reported in (2019) 12 SCC 150: MANU/SC/0189/2019, wherein it is held that:

Further, the Hon'ble Apex Court in Jaypee Kensington Boulevard Apartments Welfare Association and Ors. vs. NBCC (India) Ltd. and Ors. reported in (2022) 1 SCC 401: MANU/SC/0206/2021 at Para 216, has laid down that:

Further, in Committee of Creditors of Essar Steel India Limited vs. Satish Kumar Gupta reported at (2020) 8 SCC 531: MANU/SC/1577/2019, the Hon'ble Apex Court has propounded that:

Reinforcing the above, the Hon'ble Apex Court in Vallal RCK vs. Siva Industries and Holdings Limited reported in MANU/SC/0753/2022, has held that:

COMPLIANCE OF SECTION 30(1) AND 30(2) OF THE CODE: The compliance of Section 30(1) and 30(2) of the Code is given f Form H and Compliance Certificate filed by the Applicant annexed with this application as Annexure-21. The same is being further examined as under:

a. Section 30(1): Yes, affidavit dated 19.01.2024 declaring eligibility u/s 29 A of the code is filed by Rajkumar Agarwal, the Proprietor of the SRA.

b. Section 30(2)(a): As per Clause 2 of Part E of Chapter VIII of the Plan the Resolution Applicant undertakes to make payment of the actual CIRP cost incurred and approved by the COC in priority over payments to any other Creditors.

c. Section 30(2)(b) read with Regulation 38(1)(a) and 38(1)(b): The Resolution plan at Clause 3 of Part E of Chapter IV the SRA has proposed to pay Rs. 2,23,38,725/- the same will be paid in priority over the financial creditors in compliance with Regulation 38(1)(a). There are no dissenting Financial Creditors, hence no provisions are made in this regard in compliance with Regulation 38(1)(a).

d. Section 30(2)(c) read with Regulation 38(2)(b): Clause 7 of Part B of Chapter VI and Clause 6 of Part-I of Chapter V of the plan states that the management of the company will be under the control of the Monitoring committee and Resolution Professional from the Closing Date i.e. Plan Approval Date till the Completion Date.

e. Section 30(2)(d) read with Regulation 38(2)(c): In the Resolution plan at Part B of Chapter VI it has been envisaged that an Monitoring Agency consisting of 3 (three) Persons i.e (i) nominated by CoC, (ii) one person nominated by the SAR and (ii) Resolution Professional- Chairman will be constituted without any further action required from the corporate debtor and it will discharge its responsibilities & duties as specified in the plan till the Completion date.

f. Section 30(2)(e): The SRA at Clause 5 of Chapter XV of the Plan states that the plan does not contravene any provisions of law for the time being in force and is in compliance with the Code. The applicant has also in Form H has also certified that the Resolution Plan does not contravene any of the provisions of the law for the time being in force.

g. Compliance u/s 30(2)(f):

We have perused the reliefs, waivers and concessions as sought in the Resolution Plan. This Adjudicating Authority has the power to grant only such reliefs, waivers and concessions that are directly in tune with the I&B Code and the Companies Act (within the powers of the NCLT). The reliefs, waivers and concessions that pertain to other governmental authorities/departments may be dealt with by the respective competent authorities/forums/offices, Government or Semi-Government of the State or Central Government concerning the respective reliefs, waivers and concessions, whenever sought for. The competent authorities including the Appellate authorities may consider granting such reliefs, waivers and concessions keeping in view the spirit of the I&B Code, 2016 and the Companies Act, 2013.

The Resolution plan seeks certain reliefs, waivers, and concessions for implementation of the resolution plan. It is stated in the plan the denial of the reliefs, waiver or concession sought in the plan shall not affect the implementation of the plan, whatsoever. In the interest of brevity, the reliefs, waivers, and concessions sought and the direction of the Adjudicating Authority in respect of such are enumerated hereinbelow:

the Resolution Plan including on account of change in ownership/control of the Company shall be deemed to have been granted on the NCLT Approval Dat 8.Upon approval of the Resolution Plan/COC Approved Resolution Plan by the Hon'ble Adjudicating Authority, all non-compliances, breaches and defaults of the Company pertaining to the assets on the relevant sites, for the period prior to the Closing Date (including but not limited to those relating to tax), shall be deemed to be waived by the concerned Governmental Authorities. Immunity shall be deemed to have been granted to the Company from all proceedings and penalties under all Applicable Laws for any non-compliance for the period prior to the NCLT Approval Date and no interest/penal implications shall arise due to such non-compliance/default breach prior to the NCLT Approval Date. This includes, without limitation, waiver/extinguishment of: (a) any liabilities, fees penalties of any kind payable to any Governmental Authority by the Company for any non-The same may be considered by Appropriate Authority in accordance to compliance or default, breach, violation prior to the NCLT Approval Date, under Foreign Exchange Management Act, 1999, Foreign Trade Policy of the Government of India, 100% Export Oriented Unit related regulations, Companies Act, 1956 and Companies Act, 2013, if any pertaining to the assets on the relevant sites. (b) Liabilities under on-going/pending tax proceedings before Assessing Officer and/or before Appellate Authorities, if any, pertaining to the assets on the relevant sites, shall stand extinguished as on NCLT Approval Date.prevalent Laws keeping and in light of the judgment by the Hon'ble Supreme Court in Ghansyam Mishra & Sons v Edelweiss Asset Reconstruction Company Limited. 9.From the NCLT Approval Date, all inquiries, investigations and proceedings, whether civil or criminal, suits, claims, disputes, proceedings in connection with the Company or affairs of the Company pertaining to assets on the relevant sites, including proceedings before Debt Recovery Tribunal and consumer courts or any other court, pending or threatened, present or future in relation to any period prior to theGranted to the extent permissible u/s 32A of Code and the judgement of the Hon'ble Supreme Court of India in Ajay Radheshyam Goenka v Tourism Finance Corporation of India (Criminal Closing Date, or arising on account of implementation of this Resolution Plan shall stand withdrawn and dismissed and all liabilities and obligations therefore whether or not set out in the balance sheets of the Company or the profit and loss account statements of the Company will be deemed to have been written off fully, and permanently extinguished and no adverse orders passed in the said matters should apply to the Company or the Resolution Applicant. Upon approval of this Resolution Plan, all new inquiries, investigations, notices suits, claims disputes, litigations, arbitrations or other judicial, regulatory or administrative proceedings will be deemed to be barred and will not be initiated or admitted against the Company in relation to any period prior to the Closing Date.Appeal No. 170 of 2023) 10.The acquisition of assets on the relevant sites of the Company by the Resolution Applicant under this Resolution Plan shall not disqualify the Resolution Applicant under Section 29A of the Code for purposes of any future bid proposal that the Resolution Applicant may submit inTo be governed by prevalent laws and the terms of the Bid Proposal. future under any corporate insolvency resolution process for any corporate debtor, including subsidiaries/associates/affiliates of the Company. 11.The Resolution Applicant be granted such reliefs and concessions as granted by the Hon'ble Adjudicating Authority from time to time in favour of the resolution applicants for assets on the relevant sites as may be beneficial to the Resolution Applicant and/or the Company for successful corporate insolvency resolution of the Company and which shall not adversely impact the financial proposal under this Resolution Plan for the Financial Creditors.Not Granted as general reliefs, waivers and concessions cannot be granted.

The applicant is directed to procure a fresh Performance bank Guarantee in light of the observations made above and file an affidavit in that regard with 15 days from the date of this order.

In the light of the enumerations, observations and directions made in this Order supra and subject to the compliance of the directions given thereto we hereby APPROVE and FINALLY SANCTION the Revised Resolution Plan dated (8^{\text{th}}) February 2025 submitted by Shree Krishna Earth Movers, Successful Resolution Applicant and approved by (100%) vote in the 10th CoC Meeting.

The Resolution Plan shall form part of this Order and shall be read along with this order for implementation. The Resolution Plan thus approved shall be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government, or any local authority in terms of Section 31 of the I&B Code, so that the revival of the Corporate Debtor Company shall come into force with immediate effect without any delay.

The Moratorium imposed under section 14 of the Code by virtue of the order initiating the CIR Process, shall cease to have effect from the date of this order.

The Resolution Professional shall submit the records collected during the commencement of the proceedings to the Insolvency & Bankruptcy Board of India for their record and also return them to the Resolution Applicant or New Promoters.

Liberty is hereby granted for moving any application, if required, in connection with the successful implementation of this Resolution Plan.

A copy of this Order is to be submitted to the Registrar of Companies (RoC) to whom the company is registered, by the Resolution Professional.

A copy of this Order be served upon the Insolvency and Bankruptcy Board of India (IBBI) by the RP.

The Resolution Professional is further directed to hand over all records, premises/ factories/ documents to the Resolution Applicant to finalise the further line of action required for starting the operation. The Resolution Applicant shall have access to all the records/ premises/ factories/ documents through the Resolution Professional to finalise the further line of action required for starting the operation.

The Resolution Professional shall stand discharged from his duties with effect from the date of this Order. However, he is required to comply with our direction given in respect of PUFE application.

The Registry is directed to send e-mail copies of the order forthwith to all the parties and their Learned Counsels for information and for taking necessary steps.

In terms of the view above, the interlocutory application being I.A. (IB) (Plan) No. 2 /CB/2024 is Allowed and stands Disposed of accordingly.

Certified copy of the orders, if applied for with the Registry, be supplied to the parties upon compliance with all requisite formalities.

In pursuance of the resolution of the COC in the 10th CoC meeting with 100% votes, the Bellary Unit of the Corporate Debtor and other assets of the Corporate Debtor which do not form part of the Resolution Plan is directed to be LIQUIDATED. Mr. Sunil Kumar Agarwal, is appointed as the Liquidator subject to holding a valid Authorisation for Assignment.

All the powers of the Board of Directors and Key Managerial Persons of the Corporate Debtor hereafter cease to exist. All these powers henceforth vest with the Liquidator so appointed.

The personnel of the Corporate Debtor are directed to extend all cooperation to the Liquidator as required by him in managing the liquidation process of the Corporate Debtor.

The CoC in its 10th meeting in furtherance of Regulation 39D of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 has approved the Liquidator fees shall be proposed after the Order of Liquidation.

Once the liquidation process is initiated, subject to Section 52 of the Code, no suit or other legal proceeding shall be instituted by or against the Corporate Debtor. The Liquidator has the liberty to institute a suit and other legal proceedings on behalf of the Corporate Debtor with the prior approval of this Adjudicating Authority, as provided in sub-section (5) of section 33 of the Code.

This liquidation order shall be deemed to be notice of discharge to the officers, employees, and workmen of the Corporate Debtor except to the extent that the business of the Corporate Debtor continued during the liquidation process by the Liquidator.

This Adjudicating Authority directs the Liquidator to issue a public announcement stating that the Corporate Debtor is in liquidation. The Liquidator will also serve a copy of this order to the various Government Departments such as Income Tax, GST, VAT, etc., who are likely to have any claim upon the Corporate Debtor so that the authorities concerned are informed of the liquidation order timely. The Liquidator will also provide a copy of this order to the trade unions/employee associations of the Corporate Debtor so that the workman/employees can also be informed of this liquidation order through their association.

The Registry is directed to communicate this order to the concerned Registrar of the Companies, the registered office of the Corporate Debtor, the Resolution Professional, and the Liquidator by speed post as well as e-mail within one week from the date of this order, after completion of all the formalities.

The Applicant is directed to hand over the relevant documents and control of the Corporate Debtor to the newly appointed liquidator forthwith.

Accordingly, IA(IB) (Liquidation) No. 2/CB/2024 is ALLOWED and Disposed Off.