Small Industrial Development Bank Of India vs E & G Global Estates Limited

Per: Ms. Madhu Sinha, Member (Technical)

The above I.A. is filed for rectification of inadvertent errors in the order dated 11.08.2023 for IA No. 1150 of 2021.

The Applicant submits that the petition was filed under section 7 of the Code by a Financial Creditor i.e. Small Industries Development Bank of India (“SIDBI”) against the Corporate Debtor for initiation of CIRP which stood admitted by this Tribunal vide Order dated 24th June 2020 and Mr. Gajesh Labhchand Jain was appointed as an IRP. Sub-sequently the IRP was confirmed as a Resolution Professional of the Corporate Debtor.

The Applicant further submits that during the 8th CoC meeting held on 20 April 2021, three resolution plans were put to vote separately before the CoC members and the Resolution Plan proposed by Mrs. Asha Shivaji Sanap was approved with 79.60% voting results.

The Applicant submits that he had filed an application bearing IA No. 1150 of 2021 under Section 30(6) of the Code for approval of the Reso-lution Plan by this Tribunal on 27 May 2021 and the same was allowed by this Bench vide order dated 11 August 2023.

The Applicant submits that as per the addendum to the Resolution Plan submitted by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap has proposed that the CIRP Cost as approved in the RFRP and provided in the Resolution Plan to be paid at actuals. Relevant snap-shot of the same is as under –

However, this Bench vide order dated 11 August 2023 passed in IA No, 1150 of 2021 at page 9, Para 11A had stated that “the Resolution Appli-cant has estimated Insolvency Resolution Process Cost (till Cut-off period) approx. Rs. 100 Lakhs. However, in the event, if the final Insolvency Res-olution Process Cost, as on the Effective Date, exceeds Rs. 100 Lakhs (Rupees hundred Lakhs), then the amounts payable to the creditors in-cluding but not limited to operational creditor, financial creditors, employ-ees and workmen under this Resolution Plan may be adjusted accord-ingly on pro rata basis”.

The Applicant submits that in place of the above para the following as mentioned in addendum to Resolution Plan submitted by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap needs to be considered:

The Applicant further submits that at page 23, para d, of the order dated 11 August 2023 passed in IA No. 1150 of 2021 states that“The Applicant shall supervise the implementation of the Resolution Plan and shall file status of its implementation before this Authority from time to time, preferably every quarter”.

The Applicant Submits that in place of the above para the following as mentioned in Resolution Plan at page 43 submitted by the Suc-cessful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap be con-sidered:

After thoroughly considering the pleadings filed and the arguments ad-vanced by the parties, we are of the considered opinion that the adden-dum to the Resolution Plan was placed by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap wherein the SRA themselves has proposed that the CIRP Cost as approved in the RFRP and provided in the Resolution Plan to be paid at actuals. The relevant extract of the same is as under –

In addition to the above, this bench has observed that at page 43 the Resolution Plan submitted by the Successful Resolution Applicant i.e. Mrs. Asha Shivaji Sanap provides that the Monitoring professional shall be appointed in consultation with the COC and the Resolution Pro-fessional. However, the order dated 11.08.2023 for IA No. 1150 of 2021 inadvertently mentions that “The Applicant shall supervise the imple-mentation of the Resolution Plan and shall file status of its implementa-tion before this Authority from time to time, preferably every quarter”. The relevant extract of the Resolution Plan is as under –

In view of the above facts and upon perusing the Order this bench is of the considered opinion that the submission made by the counsel for the Applicant are true in nature and do not tantamount to a modifica-tion of the approved Resolution Plan. Therefore, the rectifications are allowed.

Accordingly, the above IA No. 3718 of 2023 is allowed and disposed off.