Allowed

In the matter of Crest Steel and Power Pvt. Ltd. Ma No. 125-CTB-2020 ln Tp No. 205-CTB-2019 [earlier Cp (Ib) No.1664-MB-2017]

NCLT1 Nov 2021earlier CP (IB) No.1664-MB-2017

Case brief

AI extract

What is this about?

The NCLT approved the Resolution Plan for Crest Steel and Power Pvt. Ltd., submitted by a consortium of Nithia Capital Resources and Mr. Jai Saraf. The plan involves capital reduction, demerger, equity infusion, and distribution of funds to creditors, finding it compliant with the IBC.

What did the court decide?

Approval of the Resolution Plan; moratorium lifted; discharge of RP; directions for compliance within one year.

In the matter of Crest Steel and Power Pvt. Ltd. Ma No… — Insolvency and Bankruptcy | NCLT (2021)

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IN THE NATIONAL COMPAI{Y^{LAW TRIBUNAL} CUTTACK BENCH

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MA No. 125/CTB/2020

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TP No. 205/CTB/2019 learlier^{CP (IB) No.1664lMB/20171}

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In the matter of

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An application under section 30(6)^{for approval of Resolution Plan} under section 31(1) of the Insolvency^{and Bankruptcy Code,2016}

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And

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In the matter of;

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INDIABIJLLS REAL ESTATE COMPAI{Y^{PYT. LTD.}

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...Ooerational Creditor

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Versus

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CREST STEEL AND POWER PVT. LTD.

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...Corporate Debtor

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And

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KSHITIZ CHHACHHARIA^{Resolution Professional of the Corporate Debtor,} residing at Grant Thomton,^1.6th Floor,^{Tower II, Indiabulls FinanceCenfre,S B} Marg, Elphinstone^(W), Mumbai-^{400 013.}

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...Applicant

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Coratn:

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Shri Rajasekhar V. K. : Member^(Judicial) Shri Satya Ranjan Prasad : Mernber (Technical)

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Appearances (through ildeo conferencing)

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For the Resolution Professional : Mr. Joy Saha, Senior Adv. Mr. Nakul Sachdeva Mr. Haripad Mohanty

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Mr. Damandeep S. Bhalla i/b L&L Parfirers, Advocates

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3c.

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Page I of61

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No. 1664/MB/201 7l} In re: Resolution plan of CREST STEEL AND POWER PVT, LT'D

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Order reserved on 12,08,2021 Order pronounced on: 01.11.2021

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ORDER

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Per: Satya Ranjan Prasad, Member (Technical)

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This Application MA No.125/2020 in CP (IB) No.1664/MB/2017 (in the matter of Crest Steel & Power Limhed, has been filed by Mr. Kshitiz Chhawchharia, Resolution Professional of Crest Steel & Power Pvt. Ltd., (refened to as 'Corporate Applicant/Corporate Debtor"'), under section 30(6) read with section 31(1) of the Insolvency & Bankruptcy Code (IBC), seeking approval by this Adjudicating Authority for the Resolution Plan submitted by a consortium of Nithia Caprtal Resources LLP and Mr. Jai Saraf, for resolution of the corporate applicant.

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Applications by the Corytorate Applicant and orders thereon

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The Corporate Debtor is a Company, incorporated on25.05.2004, with the Registrar of Companies, Chhattisgarh. The Corporate Debtorhad entered into a Leave & Licence Agreement dated 14.11.2013, with the Operational Creditor, to take certain premises on lease. Thereafter, the Corporate Debtor sent a Notice for termination of the aforesaid lease on 30,t1.2016, However, since the Corporate Debtor sought to terminate the aforesaid Agreement within the lock-in period, it was claimed by the Operational Creditor that the Corporate Debtor was liable to tender license fees for the unexpired period. In light of the aforesaid, the Operational Creditor fi7edan Application under Section 9 of the said Code, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 20t6, on 28.11.20t7, beaing Company Petition no. CP(IB) No. L664/MB/2017. The aforesaid Petition was admitted by the National Company Law Tribunal, Mumbai Bench vide order dated 11.03.2019. Mr.

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sil

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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUTIACK BENCH

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MA No. 125lCTBl2020 In TP No. 205lCTBl20l9 fearlier^{CP (lB) No.1664/MB/20171} In re: Resolution plan of CREST STEEL AND^{POWERPVT. LTD}

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Ashish Singh [IBBI Reg. No. IBBI/IPA-002/IP-N00416^{/ 2017-18 / 11230]} was appointed as the IRP.

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Although, the Interim Resolution^{Professionalwas appointedvide Order} dated 11,.03.2019 bV NCLT, Mumbai^{Bench, the said older was received} only on 22.04.20L9 andaccordingly there^{was a delay in initiatingthe CIRP} process owing to the aforesaid reason, under the IRP.^{This being the case,} the RP subsequently earlier moved an application,^{before the NCLT,} Cuttack, inter alia, seeking the insolvency^{commencement date to be} declared as 22.04.2019. Subsequently, vide Order^{dated 13.08.2019it was} held that the CIRP commencement date^{("CIRPCommencement Date")} shall be on and from22.04.2019. The^{first COCmeeting was convened on} 22.05.2019, wherein the COC resolved to appoint^{the Applicantas the} Resolution Professional, thereby replacing the earlier^IRP.

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Thereafter, an application was^prefened by SBI,^{the lead lender for} appointment of the^present Applicant as the^{RP and this Tribunalby its} order dated 09.07 .20L9, which was communicated^{to the Applicant on} L7 .07 .z}lg,rcplacedthe IRP and appointed the Applicant^{as the Resolution} Professional of the Corporate Debtor.

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In light of the aforesaid Order dated22.04.2019,^{the CIRP commencedon} 22.04.2019 and accordingly the^period of^{180 days from the aforesaiddate} was due to expire on t0.09.2019. However, the^{Resolution Professional} preferred an Application bearing IA No . 9 5 / CTB / 20¹ 9 for extension of the CIRP period by 90 days under the^provision of^{Section l2(2) of the Code.} The aforesaid Application was allowed vide Order^{dated 05.09.2019,and} thereafter the CIRP^period was then scheduled^{to conclude on 17.01.2020.} Subsequently, the Resolution Professional^{preferredan applicationbeartng} CA (IB) No. 77ICTB/2019 for exclusion^{of 57 days fromthe CIRP period.} Considering the grounds mentioned in the aforesaid^{Application,the same}

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUT'|ACK BENCH

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 fearlier^{CP (lB) No.1664lMB l20l7l} In re; Resolution plan of CREST STEEL^{AND POWER PVT, LTD}

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was allowed vide Order dated^{16.0t.2020, and resultantlythe CIRP period} was scheduled to conclude on L4.03.2020.

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Thereafter, the Resolution Professional^preferced another^Application bearing IA No. 55/CTB/2020 for exclusion of 2L^{days from the CIRP} period. The aforesaid Application was allowed vide Order dated 12.03.2020, and resultantly the CIRP^period was scheduled^{to conclude on} 04.04.2020.

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Appointment of IRP/RP and pablic anflouflcetnents and^{constitution of CoC}

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7 . Subsequenfly, a public announcement in respect of^{initiationof the CIRP} and calltngfor submission of claims under^{Section15 of the said Code was} made by the IRP on 22.04.2019by:

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submission of public announcement to the Insolvency^and Bankruptcy Board of India on22.04.2019 for^placing on its website;

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b. publication in the following newspapers on the following dates:

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S.No.	Reeion	Newspaper	Lan.guage	Date^published
1.	Mumbai	FinancialExpress	Enelish	24.04.2019
)	Mumbai	Navakaal	Marathi	24.04.2019
3	Raipur	Swadesh	FIindi	24.04.2019
4	Raipur	IimesofIndia	Enelish	24.04.2019

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Copies of the^public announcements were made avatlable^{on the website of} the Insolvency and Bankruptcy Board of India and^published in^the newspapers as mentioned above and on the website of the Corporate Debtor.

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The IRP constituted a Committee of Creditors^("CoC") of the Corporate Debtor pursuant to Section 2l of the said Code and^pursuant to Section²⁹ of the Code read with Regulation 36Q) of the CIRP Regulations,^an Information Memorandum^(hereinafter refeted to as "IM") was^ptepared by the Resolution Professional^(hereinafter referred^{to as the} "RP")^{in such}

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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUTTACK BENCH

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.1664/MBl20l7l} In re: Resolution plan of CREST STEEL^{AND POWERPVT, LTD}

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form and manner containing such^{relevant informationas specifiedunder} the CIRP Regulations for formulatinga^{Resolution Plan.}

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The RP has stated that as on date of filing of the IA,^{the verifiedand} admittedfrnancialdebt of Corporate Debtor stood^{atl3Ll8.73crore(ptaru} 1.1(1) of Part B atpage 18 of the Resolution^Plan).

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List of Creditors

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sl. No.	Name of Creditor	Voting Share (%)
1	StateBank ofIndia	34.38o/o
2.	PuniabNationalBank	20.08%
aJ.	Oriental Bank ofCommerce	7.98%
4.	,\llahabadBank	7.70%
5.	Bank ofIndia	s.38%
6.	AndhraBank	5.t9%
7.	UCOBank	4.66%
8.	Bankof Baroda	6.200/o
9.	JMFinance AssetReconsffuction PrivateLimited	3.66%
10.	CanaraBank	2.480/o
11	SvndicateBank	1.20%
t2.	ChhattisearhRaiyaGraminBank	t.09%
TO	TAL	t00%

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Appointment of valaers

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M/s Kakode & Associates with their^{partners i.e.,} Mr. Anil^{Pai Kakode} (Plant & Machinery), Mr. Sunil Apte (Land & Building) and Mr. Vishnu Upadhyay (Financial Assets) were appointed as^{the registered valuers qua} the Corporate Debtor.

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Appointment of Process Advisor

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The CoC appointed M/s RBSA Advisors^{as ProcessAdvisor for evaluating} the resolution plans.

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T he Resolution Applicants

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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUTTACK BENCH

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MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.l664lMB/20171} ln re; Resolution plan of CREST^{STEEL AND POWERPVT. LTD}

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Initially the RP received the following six^{resolution plans,which were} discussed at the tenth meeting of the CoC^{that was convened on 10.12.201.9:}

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x	Name of the ResolutionApplicant
I	Real Ispat and PowerLimited
2	SunilKumarLLP
3	OrissaMetaliks Pvt.Ltd.
4	NithiaCapitalResourcesAdvisorsLLP
5	GauravJain
6	SesaResourcesLimited^{(Vedanta group)}

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L4. Subsequenfly, by the seventeenth meeting of the^{CoC, whichwas convened} on04.03.2020,the RP informedthat the SRAs had submitted^{their revised} Resolution Plans incorporating their final bids as^made on^{24.02.2020 on} 03.03.2020. Then officials of M/s RBSA Advisors^{presented their} evaluation of the bids of each of the SRA, therein^ranking Nithia^Capital Resources Advisors LLP and Mr. Jai Saraf as the best^{resolution plan based} on the evaluation matrix approved by the CoC, followed by^{Sunil Kumar} AgarwalLLP andlastly, Orissa Metaliks Ltd.

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Nithia's Resolution Plan - consideration by CoC

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The RP, alongwith his advisors, evaluated Nithia's^{plan. He also obtained} written clarifications on several aspects. The matter was also discussed^at various meetings of the CoC held on 07 .01.20120, 22.0t.2020,^06.02.2020, 24.02.2020, 04,03.2020 and 12.03.2020. After concluding that Nithia's Resolution Plan conformed to the law, the RP^presented the^plan to^the CoC for consideration and approval.

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t6. Based on the discussions at the CoC meeting of^{25.03.20L9, the RA} submitted a revised^plan on 23.03.2020, which^{was found to be compliant} with the IBC. The Resolution Applicants state that^{they do not suffer from} the ineligibilities set out in section 29A of the IBC.

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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUT"|ACK BENCH

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MA No. 1251C1-F.12020 In TP No. 205lCTBl2019 fearlier^{CP (lB) No.1664/MBl20l7)} In re: Resolution plan of CREST STEEL^{AND POWERPVT, LTD}

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t7. The CoC at its 20'h meeting held on^{24.03.2020 appfoved Nithia's} Resolution Plan by amajoity of 96.34%,^{which is more than the statutory} minimum of 660/0. The CoC also authorized the^RP to^{file necessary} application under section 30(6) of the^{IBC for approval of this Adjudicating} Authority under section 31(1) of the IBC.

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The RP has also submitted a detailed checklist^{showing compliance with} the various provisions of the IBC and the^{Insolvency & BankruptcyBoard} of India (Insolvency Resolution Process for^{CorporatePersons)} Regulations, 2016.

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Salientfeatures of the Resolution Plan

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Profile of RA and structure of consortium

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t9. For the purposes of the Resolution Plan, the resolution applicants^are:

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(1) Nithia Capital Resources Advisors LLP, a limited liability^partnership incorporated under Limited Liability Partnership Act, 2000 and^having its corporate office at 2nd Floor, Berkeley Square House, Berkeley Square, London WlJ 6BD, its Affiliates or wholly^{owned subsidiaries} to be set up (which shall be in compliance with Section 29A^{of the} IBC) ("Nithia"); and

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(i1) Mr. Jai Saraf Chief Executive Officer of Nithia Capital Resources Advisors LLP ("Jai" together with Nithia refered to as "Resolution Applicants").

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The Resolution Applicants have proposed to implement this Resolution Plan (or arry parthereof) through a special^purpose vehicle^{("SPV")(which} is in compliance with Section29Aof the IBC) incorporated^for this^pufpose by the Resolution Applicants.

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2t. Pursuant to the Resolution Plan, an SPV witl be incorporated in which^the Resolution Applicants will initially either directly^{(or indirectly through}

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No.1664/MB12017)} In re: Resolution plan of CKEST STEEL^{AND POWER PVT, LTD}

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intermediate holding company(ies)) hold^{100% of the equlty of the SPV} (with an option to divest up to 490/o of the equity at any time^prior to^or on or after the Closing Date). It is clarifiedthatany^{changein the shareholding} of the Company within a^period of^{1 (one) year from the Closing Date will} requfue the approval of the lenders who are^{continuing with the Company} as lenders, by majority of 66% by value.

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Proposal to turn around the Corporate Debtor

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The Resolution Applicants state that there^{is fundamental value in the} Company, which through financial and operutional^{resffucturingcan create} value for al1 Stakeholders. The Business of the Company^{suffered from} amongst other things, economic downturn^{and the financialstressprevalent} in the iron and steel industry and over-leveraging and the^Resolution Applicants intend to optimize the capital structure to address^{the basic cause} of financial distress.

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The Resolution Applicants will use a combination^{of volume increase,} productivity improvements, cost efficiencies; process improvements and automation; alignment of management and workers'^interest to^the performance of the Company. Improvement in volume and^productivity of the Company will be done through completion of^{incompleteprojects and} new capital expenditure^{programmes(through} intemal^{accrualsof the} Company or equity infusion).

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Commercialfunctions

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The Resolution Applicants^propose to appoint senior^{personnel with a long} ffack record of procurement in the steel indusffY, for the^{procurementof} raw materials and key materials. Procurement function will^{be carried out} on an arms-length basis and all conffacts with rclated^{andaffiTiatedparties} will be terminated and/or brought under arm's^length.

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The Resolution Applicants also propose to appoint senior^personnel with an extensive experience in marketing and selling of these^products which

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a"
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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUTTACK BENCH

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MA No. 125lCTBl2020 In TP No, 205lCTBl2019 learlier^{CP (lB) No.1664/MB/20l7l} ln re; Resolution plan of CKEST STEEL AND^{POWER PVT. LTD}

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willbe backed by the^{production planning team.Production planning team} will assist the operations team on^the targetproduction^{levels on a weekly,} fortnightly, monthly and^qlrafierly basis. The^{ResolutionApplicants will} also appoint^{production planning} and^{quality control teamto assist the} marketing head on maintaining^quality and timely^{deliveryof products.}

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The Company willsell its^products in the market^{through all channels viz.,} directly to steel manufacturers and^{stockists,however,the Resolution} Applicants are^going to dispense with all the currentarrangements^{of selling} products through existing Promoter relatedaffiliates or Promoter connected parties.

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The Resolution Applicants will try to achieve the^{best realizations on the} products. However, in the business plan, selling prices of finished^products in the projected financials have been considered based^{on historicaltrends} which are sustainable on long-term keeping in^{perspective of all steelcycles.}

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Working capital and capital expenditure

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Currently, there are no operations as the^{plant is shutdown.Prior to such} shutdown also, the operations were suffering due to lack of^sufficient working capital which was a consffaint to achieve optimum^capacity utilizations and economies of scale. The^plant is said to have^some inventory balance in the form of raw material, work-in-progress,^finished products and stores and spares. As per the Resolution Plan, it has been sought to maintain that level of inventory till the Resolution^{Applicantstake} over the operations of the Corporate Debtor. The Resolution^Applicants propose an amount of t20 Crore out of the Fund Infusion to meet the working capitalrequirement of the Corporate Debtor.

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During initial period of operations, the Resolution Applicants^proposeto sel1 products on spot basis, which will help in building up sufficient^raw materialbalance in the^plant. Going forward, the Resolution^{Applicants will} gadually increase credit to customers and balance the requirement of

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCFI

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MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.l664lMBl2017l} In re: Resolution plan of CKEST STEEL AND^{POWERPVT, LTD}

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working caprtal in the^plants. The Resolution^{Applicantsendeavor to build} up optimum level of working capttal in the^company to^achievethe maximum utilization of capacities.

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F'urthermore, the Resolution Applicants are^proposing to incur^the following capital expenditure^:

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C ommi ssi o ning of Pelle t cap acitie s

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(a) For achieving the pellet plant commissioning with a capacity of 1.2 MTPA, the Resolution Applicants propose to complete balance capex on priority basis. As per details avatlable in the Virtual Data Room and lenders' independent engineer's reports presented, majoriry of capex has been incured and the Resolution Applicants will incur the additional amount that may be required for completion of capacities.

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Expansion of Sponge and Power capacities along with Railway Siding

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(b) The Resolution Applicants propose to commence the capitaL expenditure on the Sponge, Power capacities and on Railway Siding after commissioning of the pellet plant. As^per details avarlable in the Virtual Data Room, these capacities are at an advances stage of completion.

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Infusion of capital

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(c) The Resolution Applicants intend to infuse t80 Crore (Rupees Eighty Crore Only) by way of a Fund Infusion^(as defined hereinafter) within 12 months of the Closing Date (of which t50 Crore will be infused within 6 months of the Closing Date) to fund the capex expansion^plan in relation to the pellet plant and the captive power plant, to the extent as may be necessary to run the pellet plant^("Expansion Plan") without any obligation on the existing COC members to^provide such funds. The

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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUTTACK BENCH

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MA No. l25lCTBl2020 ln TP No. 205lCTBl20l9 learlier^{CP (lB) No.1664/MB120171} ln re: Resolution plan of CfuEST STEEL^{AND POWER PVT, LTD}

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Resolution Applicants^propose to enter into^{a fixed price EPC contract} with a reputed contractor for completion^{of the Expansion Plan.}

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Treatment of stakeholders

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The Resolution Plans^provide for the^{interests of all Stakeholders(ref:} Section 1.2 (Financial Proposal) of Part^{B (FinancialProposal) and Section} 2 (Treatment of Stakeholders) of Part B^{(Financial Proposal) of the} Resolution Plan).

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The Resolution Plan^provides for amounts^{(in Rs./ crore) to various classes} of stakeholders as follows:^-

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S1.No.	Categoryof Stakeholder*	Amount Claimed	Amount Admitted	Amount Provided under the Plan#	Amount Provided to theAmount Claimed(%)
1	Secured Financial Creditors	2,553.45	2,553.40	279.93	10.96%
2	Unsecured Financial Creditors	2,387.40	s65.68	21.07	0.88%
aJ	Operational Creditors	L,197.51	532.62	15.00	r.25%
4	OtherDebts and Dues
GrandT	otal	6,r38.36	365L.70	316.00

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Timelines within which amounts will be^paid to the operational^{ueditors,employees etc,}

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The Resolution Applicants^propose to make atotal^payment of^{an amount} not exceeding {316,00,00,000^(Rupees Three Hundred^{and Sixteen Crore} Only) ("Upfront Payments") for resolution of the Corporate Debtor / Corporate Applicant in terms of the^provisions of the IBC.

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Furthermore, it is proposed that the Upfront Payments^{shall be utrlized for} the full and final satisfaction and discharge of all Claims^{and debtagainst}

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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MA No. 125lCTBl2020 ln TP No. 205lCTBl2019 learlier^{CP (lB) No.1664/MB/20171} In re; Resolution plan of CfuEST STEEL AND^{POWERPVT, LT'D}

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the Corporate Debtor of all the^{Stakeholders (including the Financial} Creditors, Dissenting Financial Creditors,^{Operational Creditors (including} Workmen and Employees and Government and^{Statutory Authorities),} Other Creditors or any other Person to whom^{any amount is due be paid} pursuant to this Resolution P1an, if any, excluding the CIRP Cost). The manner of distribution of the Upfront Payments shall be as^follows:

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A. Payment of {15,00,00,000^(Rupees Fifteen Crore Only)^{for payment to} all the Operational Creditors^(including Workme n andEmployees).^The distribution between and amongst Operational Creditors inter se^shall be determined by the COC, in accordance with the ApplicableLaw

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B. Payment to Mandatory Dissenting Financial Creditor in^priority to any payment to Approving Financial Creditors;

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C. The balance amount to be disributed between and amongst the Approving Financial Creditors on such terms and^proportion as determined by the COC, in accordance with the ApplicableLaw,

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It is submitted by the Resolution Applicants that the manner of distribution of the Upfront Payments shall be ultimately as determined by the COC, in accordance withApplicable Law. Upon approval ofthis Resolution Planby the Adjudicating Authority in accordance with the Code, such manner of distribution will be binding on all the Stakeholders of the Corporate Debtor.

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The Excess CIRP Costs wil1 be paid in fuIl and in priority to any other Creditor of the Corporate Debtor. Based on the informationavarTable in the Virtual Data Room, the Resolution Applicants understands that the estimated CIRP Cost for the^period till March 3,2020 is approximately⁷²² Crore (Rupees Twenty-Two Crore Only). The Resolution Applicants do not anticipate the CIRP Costs to exceed {25 Crore^(Rupees Twenty-Five Crore Only) till the Effective Date. Any CIRP Costs will be^paid out of the intemal

5d.

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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MA No. 125lCTBl2020 In TP No. 205lcTBl2jlg learlier^CP 0B)^{No.1664lMBl201ll} In re: Resolution plan of CKEST STEEL AND^{POWERPVT, LTD}

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accruals of the Corporate Debtor on the Closing Date.In^{case the cash flows} of the Corporate Debtor on or before the ClosingDate^{are not sufficient to} meet the entire CIRP Cost, then such Excess CIRP^{Cost upto {25 Crore} shall be paidby the Resolution Applicants. In case the CIRP Cost is above {25 Crore, the same shall be proportionately deducted from the Upfront Payment to FCs.

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Proposed Schene of Arrangement & Demerger

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The Resolution Applicants^proposes to split / demerge the^Corporate Debtor rnto 2 (two) separate and distinctlegal entities^pursuant to a scheme of demerger ("Demerger"). The Demerger will, inter alia, has been stated to be beneficial as it will allow the businesses and activities of the Demerged Company and the Resulting Company to be carried on more economically, conveniently and advantageously following the Demerger andthe same will have beneficial results for the Demerged Company and the Resulting Company, their Stakeholders and all concerned.

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Capital Reduction:

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The Company shall undertake a capital reduction, whereby all the equlty shares andpreference shares of the Company held by any Person on a fully diluted basis shall stand cancelled and extinguished, without any^pay-out, or cash consideration to the Financial Creditors, Operational Creditors, Employees and Workmen, statutory creditors, Other Creditors, other third parties, the existing shareholders and arry other Person, under the provisions of the Companies Act, 2013 ("Capital Reduction"). The face value of the equity shares so cancelled shall be transferred to the capital reserye of the Company.

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The Corporate Debtor would not involve either a diminution of liability in respect of unpaid share capital, if any, or payment to any shareholder of any

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MA No. 125lCTBl2020 In TP No. 205lCTBl20l9 fearlier^{CP (lB) No.1664/MB/20171} In re: Resolution plan of CREST STEEL AND^{POWER PVT. LTD}

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unpaid share capital. The Corporate^{Debtor is undergoing CIRP;therefore,} the existing value of the share capitalof^{the CorporateDebtoris NIL.}

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The Capital Reduction of the Corporate^{Debtor shall be effected as an} rntegralpart of this Resolution Planby the NCLT^{order withoutany further} act, deedor instrument. Implementation^{of the ResolutionPlanin terms of} the NCLT order shall be deemed to be due compliance^{of all provisions of} Applicable Law in this regard^(including Section 66^{of the CompaniesAct,} 20t3). However, all applicable forms shall be filed with^{the appropriate} authorities along with^prescribed filing fee.

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4L. Further, the Corporate Debtor would not involve^{either a diminution of} liability in respect of unpaid share capital, if any, or^payment to^any shareholder of any unpaid share capital. The Corporate^Debtoris undergoing CIRP; therefore, the existing value of the^{sharecapital of the} Corporate Debtor is NIL.

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Capital Infusion:

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Simultaneous with the step above, the SPV along with the^Incoming Shareholders (who shall be compliant with Section 29A of the IBC)^shall together subscribe to equity shares of the Company^for such amount^{as may} be determined by the Resolution Applicants in their sole and^absolute discretion.

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Pursuant to the same, the SPV along with the Incoming Shareholders shall hold 100% (one hundred^per cent) of the share capital of the^Corporate Debtor and acqtolue control of the Corporate Debtor.

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After the Demerger as set out hereinbelow, the SPV along with the Incoming Shareholders shall hold9l% of the share capitalof the^Demerged Company and the Financial Creditors who vote^{in favour of the Resolution} Plan shall hold 5% of the share capital of the Demerged Company in^the

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MA No. l25lCTBl2020 In TP No. 205lCTBl2019 fearlier^{CP (lB) No.1664/MB12011]} ln re: Resolution plan of CfuEST STEEL AND POWER PVT, LTD

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manner specified in Section 1.2.1 (Summary Proposal) of Part B^(Financial Proposal) of the Resolution Plan. It is clarified in the Plan that that the Demerged Company shall hold t00% of the Resulting Company.

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Further, on and ftom the Closing Date, all existing directors of the Company shall be deemed to have resigned and vacated their office, and the board of directors of the Company shall be re-constituted by the Resolution Applicants in accordance with Applicable Law (including the applicable requirements of appointing independent directors)

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Supemision of the Implementation Schedule by Monitoring Committee:

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Post the Effeaiue Date and prior to the Closing Date:

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During the period between the Effective Date and the Closing Date, a monitoring committee shall be constituted ("Monitoring Agency") which shall comprise of (i) 2 (Two) representatives of the Financial Creditors; ii) 2 (Two) representatives of the Resolution Applicants; (iil) Insolvency Professional (1v) 1 (One) extemal expert nominated by the Resolution Applicants and the Approving Financial Creditors. Al1 decisions of the Monitoring Agency shal1 be taken by way of majority decision, which majority shall comprise of at least one representative of the Resolution Applicants.

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The Resolution Applicants shall (prior to the Effective Date) agree on the fees, costs and expenses which may be incurred by the Monitoring Agency in discharging its duties as set out above and for continuing the Business of the Company andlegalfees that may be incurred by them from the Effective Date till the Closing Date (the "Monitoring Agency Costs"). The Monitoring Agency Costs shall be funded on a monthly basis from the cash flows of the Corporate Debtor. In the event such cash flows are insufficient, any Excess Monitoring Agency Costs shal1 be bome by the Resolution Applicants.

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.1664lMBl2017l} In re: Resolution plan of CREST STEEL AND POWER PYT, LTD

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The Monitoring Agency shall supervise the implementation of the Resolution Plan. The Resolution Applicants, acting under the supervision of the Monitoring Agency shall be required and entitled to do all such acts, deeds, matters and things as may be necessary, desirable or expedient in order to implement and give effect to this Resolution Plan in accordance with its terms. The powers of the board of directors of the Company shall remain suspended until the Closing Date and shall be exercised by the Monitoring Agency.

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It is clarified that other than the Upfront Payments (to be paidrn accordance with this Resolution Plan), the Company and/or the Resolution Applicants shall not make any payments (including interest) to the Financial Creditors, Operational Creditors, Workmen and Employees, and/ or the Other Creditors until the Closing Date.

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On and afier the Closing Date

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The Monitoring Agency shall stand dissolved and shall be divested of its powers and responsibilities without any further action or deed required from the Company, the Resolution Applicants, the Monitoring Agency, the Adjudicating Authority or any other person.

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Acquisition of Control on the Closing Date, the Resolution Applicants shall acquire control over the Company through the SPV in the manner set out in Section 3 (Acquisition as a Going Concern) of Part B (Financial Proposal).

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Supentision of Plan

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The board of directors of the Company (reconstituted in accordance with Section 2. 1 (Formation of Boar d and Credentials of Board Members) of Part A (Business Plan) of the Resolution Plan) shall put in place an adequate mechanism for supervising the implementation of the Resolution Plan (to

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MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.l664lMB/20171} In re: Resolution plan of CfuEST STEEL AND^{POWERPVT. LTD}

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the extent outstanding) post the Closing Date. For this^purpose,a committee of the reconstitutedboard of directors of the Company will^be constituted, for supervising the implementation of the Resolution^{Plan (to} the extent outstanding)^post the ClosingDate.

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Implementation S che dule :

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	INDICATIVE ACTIVITYSCHEDU	LE
Sr. No.	Activity	IndicativeTimeline (days)
I-	ApprovalProcess
1 2	Presentationof ResolutionPlantotheCOC. Approvalof ResolutionPlanby COC	Tobecompletedprior toNCLTapprovalof theResolutionPlan
3	ApplicationtotheNCLTforapproval of the ResolutionPlan.
4.	IncorporationofSPV	Tobecompletedprior toNCLTapprovalof theResolution Plan
5. 6	Approvalof ResolutionPlan andDemergerby theNCLTon theEffective Date^(suchdate, "T").&Appointmentofmembersof MonitoringAgency	T
7.	IntimationtoallFinancial Creditorsand Operational Creditors, existingshareholders and otherStakeholders.	T+1
II-In	LterimPeriod
8.	CompletionoftheConditionsandIssueof ImplementationNotice(suchdate"Y")	Y
III-	InfusionofFunds,Acquisition,Settlementof Cre MandatoryPayments	ditorsand
9.	CapitalReduction(i.e.,fortheacquisitionof conffoloftheCorporateDebtorbythe Resolution Applicants)and Capitallnfusion intothe CorporateDebtor.	T+90

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3dt^'--

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (l B) No.I 664lMB/20I 7l} In re: Resolution plan ol CfuEST STEEL AND POWER PVT, LTD

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10.	Implementationof Demergerascontemplatedin this	T+90
	Resolution Plan forvestingof ExpansionAssets inResulting Company
11.	PaymentofCIRPCosts,Workmenand EmployeePayments,OtherOperational CreditorPayments,MandatoryDissenting Financial CreditorPaymentsandallother mandatory payments requiredtobemadein accordancewiththeIBC.	T+90
12.	UpfrontPaymentto FC,AssignedFinancial DebtAcquisition	T+90

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We have perused the present Application and the Resolution Plan. We have also heard at length Mr Joy Saha, learned Senior Counsel for the RP.

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Statutory provisions

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The IAs have been filed under section 30(6) of the IBC seeking approval of this Adjudicating Authority under section 31(1) of the IBC. Section 31(1) ibid mandates that the Adjudicating Authority shall by order approve the resolution plan if it is satisfied that such resolution plan as approved by the CoC under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30.

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Observations of the Adjudicating Authority

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The Tribunal's observations are as follows: -

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(a) The total loan amount outstanding to all Financial Creditors (Financial Creditor), is approximately t3118.73 crore, whereas the successful the Resolution Applicant has proposed to pay {301 crore.

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(b) The Resolution Applicants have proposed payment of an upfront amount of t316 Cr., for which be towards the complete and full

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.l664lMB/20171} In re: Resolution plan of CREST STEEL AND POWER PVT, LTD

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satisfaction of the debts owed by the Corporate Applicant to^the Financial Creditors and Operational Creditors.

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(c) The Approving Financial Creditors shall be issued equity shares of the Demerged Company (i.e. the holding company of the Resulting Company), as against such amount as may be determined by the Resolution Applicants ("Balance Debt") by converttng part of the Balance Debt of the Approving Financial Creditors into equity shares of 110 each having total value of {5 Crore such that the Approving Financial Creditors shall collectively hold equlty shares corresponding to five per cent (5%) of the total paid up and issued equlty share capitalcalculated on a fully dilutedbasis, after FirstFund Infusion into the Demerged Company by the Resolution Applicants. Such equity shares shall be credited as fully paid-up to such Financial Creditors. Further, such equity shares shall be issued in the proportion that is determined by the COC in accordance with Section 3.9 of Part A (Business Plan) of the Resolution Plan.

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(d) The Demerged Company will hold l00o/o equity in the Resulting Company.

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(d) The Fair value is stated to be Rs. 617.90 Cr whereas the Liquidation value is stated to be 303.65 cr.

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Findings with reference to section 30(2) of the IBC

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The Resolution Plan is presented as per the requirements of section 30(2) of the IBC. The following table captures the position:

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Requirement	Compliance	Comment
CIRPcoststobepaid	Yes	CIRPcostswillbepaid from
	Section2.1	Available Funds inpriorityto
	PartB	any othercreditor.

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5d.

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CUTTACK BENCH

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MA No. 1251C'tB.2020

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In TP No. 205lCTBl2019 fearlier^{CP (lB) No.l664lMB 120111} In re: Resolution plan of CREST STEEL AND^{POWERPVT. LTD}

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Requirement	Compliance	Comment
Debtsof operational creditors	Yes Section 2.3of Part B	Anamount of {15 lakhhasbeen Earmarkedforpaymentol <15,00,00,000 (RupeesFifteen CroreOnly)forpaymenttoall theOperationalCreditors (includingWorkmenand Employees).Thedistribution between and amongsl Operational Creditorsinters€ shall be determinedby theCOC, in accordancewiththe
Managementof	Yes	Duringtheperiodbetweenthe
corporate debtor afterapproval'	Section5of PartB	EffectiveDateandtheClosing Date,amonitoringcommittee ;hallbeconstituted("Monitoring Agency")whichshall compriseof .i)^{2(Two)representativesofthe} Financial Creditors;ii)2(Two) :epresentativesoftheResolution Applicants;(iii)Insolvency Professional(iv)1(One)external 3xpertnominatedbythe ResolutionApplicantsandthe ApprovingFinancialCreditors. Alldecisionsofthe Monitorins
Implementationof the	Yes	Aschemeofdemerger, capital
Resolution Plan	Section6of PartB	reduction andcapttal infusion has beenenvisagedunderthe plan.Furthermore,theplan alsotakesintoaccountthe formationof aMonitoring Agencyforoverseeingthe implementationoftheplan befweenthe Effective Dateand theClosingDate.
Contraventionsoflaw,	No	Nocommentsare necessary.
ifany	Section74of PartC

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MA No. 125lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB)No. 1664/MB/2017l} In re: Resolution plan of CREST STEEL AND POWER PVT, LTD

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We have examined the relevant clauses of the Resolution Plan and find the same to be in conformity with the law. Further, the Resolution Plan has provisions for its effective implementation.

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Extinguishment, waiuers & liabilities sought by the RA, and orders tltereon

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The RA has sought cefiain reliefs, concessions and dispensations in the Resolution Plans. These are ordered as follows:^-

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Clause	Dispensation	Orders thereon
2.14.2.(i)	A11obligations,claims andLiabilities (whetherfinalorcontingent,whether disputedorundisputed,andwhether or notnotifiedtoorclaimedagainstthe Company)oftheCompany(including by incometax/tndtecttaxauthoritiesor any otherauthoritywhatsoever);(ii)all potential direct/tndirecttaxliability (includingbut notlimitedtoany potentialMATliability,potential liabilityunder Section56and50CAof Income TaxAct,196l) / tnterest/penalty etc.whichmaybeleviedbyany authority infuture uponimplementation ofthisResolutionPlan;(ii1)all outstandingDisputesor legal proceedings againstthe Company;and (iv) allrightsorclaimsofanyperson againsttheCompany;ineachcase, relating totheperiodpriortotheClosing Date,shallimmediately,irrevocably andunconditionallystand extinguished, waived,withdrawnandabatedonand from theClosing Date, andnoperson shall have any further rightsorclaims againstthe Companyorthe Resolution Applicantsinthisrcgard.	Thisisforthe appropriate authorities to consider
2.t4.2.(i)	(ti)Guarantees	Allowed

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learl^{ier CP (lB) No.I 664lMB/201 7l} In re: Resolution plan of CREST STEEL AND POWER^PVT, LTD

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Clause	Dispensation	Orders thereon
	A11obligations,Liabilities claimsor proceedingsinrelationtoanycorporate guarantees,indemnitiesandallother formsofcredit support providedbythe CompanypriortotheClosingDate (includingbut notlimitedtothe guaranteeextendedtosecurethe obligationsofTopworthUrjaand Metals Limited,TopworthTollway Satna PrivateLimited,Topworth Tollways Mangawan Private Limited andTopworth TollwaysUjjainPrivate Limited)shallbedeemedtobeowed anddueas of theInsolvency CommencementDate, andshall immediately,irrevocablyand unconditionallystandextinguished, waived,withdrawnandabatedonand fromthe Closing Date,includingbutnot limited toanyformof creditsupportfor personsthatare currentlyAffiliates, PromotersorPromoterGroup (includingthe existing Promoters ofthe Company),personsactinginconcert withPromoters,holdingcompanies, subsidiarycompanies,associate companiesand/ orGroupCompanies of the Company.
2.14.2.(it) &2.2.7.& 2.2.8.	Right ofSubrogation Anypersonother thantheCompany (includingthe existing Promoters ofthe Company) thathasprovided anyformof security interest forand onbehalfof,and /orrnordertosecureanyobligationsof theCompany (whetherbywayof hypothecation,pledge,mortgage, guarunteeorotherwise),shallnotbe entitledtoexerciseanysubrogation rightsinrespectofsuchaffangemerfi, andtheyshallhaveno rightsorclaims againsttheCompany.SubjecttoSection 2.15, alloblisations.Liabilities.claims	Allowed

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MA No. l25lCTBl2020 In TP No. 205|CTB/2019 learlier^{CP (lB) No.l664lMB/20171} In re: Resolution plan of CREST STEEL AND POWER PI/T, LTD

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Clause	Dispensation	Orders thereon
	orproceedings againstthe Companyin this regardshallbedeemedtobeowed and dueasof theClosingDate,andshall immediately,irrevocablyand unconditionallystandextinguished, waived,withdrawnandabatedonand fromthe Closing Date.
2.12.2(iv)	Treatment ofdebtsbarcedbylimitation Subjecttootherprovisionsofthis ResolutionPlan,asof the Closing Date, anydebtowedbythe Companytoany Operational Creditor, whichisbarredby limitationundertheApplicableLaws, shal1 immediately,irrevocablyand unconditionallystandextinguished, waivedandwithdrawnonandfromthe Closing Date,andnopersonshallhave any further rightsorclaimsagainst the Companyinthisregard.	Asperthe applicable provisionsof the coresponding statutes/Iaws
2.t2.2. (v)	implicatedin, or inanymanner adversely affectedby(includingin respectofffansactionsinforeign exchange),orhaveanyLiabilityin relationto,arryinvestigations/ proceedings/ordersorany matters relatingtothe Company or its erstwhile Promoters.	Asperthe applicable provisionsof the coresponding statutes/laws
2.12.2.(vi)	The approval of the Resolution Planby theNCLTshallcausethedirecttax authoritiestograntwavier forgettinga noobjection certificatefromdtrecttax authoritiesascontemplatedunder Section281ofIncomeTax Act,796l.	Thisisforthe appropriate authoritiesto consider
2.12.2(vlt)	The approval of the Resolution Plan by theNCLTshallcausetheMinistryof CorporateAffairs,Governmentof India,providentfundauthorities,sales taxauthorities/servicestaxauthorities /GST Counciltowaive^penalcharges	Thisisforthe appropriate authorities to consider.

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MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No. 1664/MB/20171} ln re: Resolution plan of CKEST STEEL AND POWER PVT. LTD

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Clause	Dispensation	Orders thereon
	for pastnon-complianceof filling/secrctarialobligations.
2.72.2. (viii)	Subjecttootherprovisionsofthis ResolutionPlan,theCompanyshall havenoLiabilitiesinrelationtothe periodpriortotheClosingDate.	Allowedsubject tostatutoryand other relevant duesasdecided bythe approprtate authorities.
3.10.	ApprovalofthisResolutionPlanshall bedeemedtobeapprovalofthe Acquisition, Capital Reductionand Demergerbytheshareholdersand CreditorsoftheCorporateDebtorand nofurther actionshall berequired tobe undertakenby theResolution Applicantsin thisrespect.The ResolutionProfessionalshall,inits applicationforseeking approvalofthis Resolution Planalsoseekthefollowing specific ordersfromtheAdjudicating Authority:(a)approvingtheCaprtal Reductioninthe manner contemplated undertheResolutionPlan;(b) approvingtheAcquisitioninthemanner contemplatedundertheResolution Plan;and(c)Demerger.	Thisshouldbe asper the Applicable provisionsof law inthis regard. However,the Corporate Debtor under thesuccessful resolution applicants shall fileallnecessary formswiththe appropriate authorities alongwiththe filingfee prescribedfor thispurpose, andno exemptionis grantedinthis regard.
2.2.2.	FollowingtheMandatoryDissenting Financial CreditorPayments,Upfront PaymenttoFCs,Assigned Financial DebtAcquisition,allremaining	Allowed

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MA No. l25lCTBl2020 In TP No. 205lcTBl2jlg learlier^{CP (lB) No.1664/MB12017)} In re: Resolution plan of CREST STEEL AND POWER^PYT. LTD

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Clause	Dispensation	Orders thereon
	financial liabilitiesoftheCorporate Debtortowards theFinancialCreditors shall bepermanently settledinfuIlon andfrom theClosingDate, andthe CorporateDebtorortheResolution Applicants,shallatnopointof timebe, directlyorindirectly,held responsibleor liabletomakearry paymentstothe FinancialCreditorsin relationthereto.
2.2.3.	A11claimsrightsorentitlements (includinganydemandforanylossesor damages,principal,accrvedorunpaid interest,compound interest,penal interest,liquidateddamages,andother chargesakeady aecrued/accruingor in connectionwithanythirdpartyclaims), commission,charges,facilityagency fees,securitytrusteefeesetc.thathave notbeenassigned,novatedoracquired pursuant totheAssignedFinancial Debt Acquisition(otherthan theNecessary BankGuarantees), on account ofarising on or after theInsolvency CommencementDateanduntilthe Closing Datewillby virtue ofthe order oftheNCLTapproving this Resolution Planbedeemedto:(I)be permanently extinguished;and(IDhavestopped accruingonandfrom theInsolvency CommencementDate,andthe CorporateDebtorortheResolution Applicantsshal1at nopoint oftimebe, directlyorindirectly,held responsibleor liabletomakeanypaymentstothe FinancialCreditorsinrelationthereto. TheCorporateDebtorshall beallowed, atits discretion, to set-offexistinglosses fromthe gains arisingoutofwrite-offof existingdebtintermsof this Resolution Plan.	Allowed
2.2.4.(i)	Post tenderingtheupfrontpaymentall relevantpersonsincludingtheFinancial Creditorsshallredeliverandshallcause	Allowed

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MA No. l25lcT82020 In TP No. 205lCTBl2\lg learlier^{CP (lB) No.1664/MBl20l7l} In re; Resolution plan of CREST STEEL AND^{POWER PVT, LTD}

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Clause	Dispensation	Orders thereon
	tobedeliveredtotheCompany, all documents(otherthan theNecessary BankGuarantees)rcLatirLgtothe Company(includingloanagteements, guarantees,securitydocuments, title deeds,leasedeeds, leaseagreements, demand promissorynotes,records, powers of attomeys, post-datedcheques, othernegotiableinsffuments, encumberedwith theFinancial Creditors) andcollateralheldbythemin relationtosuchassetsthatarein possessionof ordepositedwithsuch FinancialCreditors or any otherPerson forthe benefitofanyofthe creditorsof the Company.Further,eachcreditorof theCompanyshallexecuteorissue dischargecertificates,no-objection certificatesand allotherdocuments and takeallsuch actionsasmayberequired by theCompanyorResolution Applicants or theSPVforthereleaseor modificationoftheEncumbrances, securityinterestsandcharges contemplatedinthis^para$aph.
2.2.4.(ii)	AnySecuriryorDisputeinrelationto theOutstandingFinancialCreditor Debtshall besubjecttotheffeatment specifiedinSection2.8(Treatmentof SecurityandOn-goingLitigation)of PartB^(FinancialProposal).	Allowed
2.2.4.(111)	NoFinancial Creditorshal1be entitled totake,initiateorcontinuearty stepsor proceedings againstthe Companyorits assetswhether byway of demand,legal proceedings, alternativedetermination process,the levyingofdistress,inany jurisdictionwhatsoeverforthepurpose ofobtainingpayment ofanyLiabilityfor obtaining paymentoftheOutstanding Financial Debt,or forthepurposeof placing theCompany intoliquidationor any analogous^proceedings	Asper the applicable provisionsof Law

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3A '^.--'

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 leorlier^{CP (lB) No.1664/MBl2017l} In re: Resolntion plan of CREST STEEL AND POWER PVT. LTD

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Clause	Dispensation	Orders thereon
2.2.4.(iv) &(v)	The FinancialCreditors shallhave no rightsorclaimsagainsttheCompany (including but notlimited to, in relation toanypast breachesbytheCompanyor anyrightofrecompensethatthe FinancialCreditorsmayhave) andall priorclaimsshallimmediately, irrevocablyand unconditionallystand extinguisheduponpaymentofthe UpfrontPayment to FCs.&allliabilities oftheCorporateDebtorinrelationto anylettersofcredit,leffersofcomfort, post-datedcheques,letters ofawareness, leffersofundertaking,guarantees, counterguarantees,corporate guarantees,bank guarantees, performanceglJaranteesforanyother Persons,indemnity,undertaking,or similar obligations inrespectof any debt orotherobligationoftheCorporate Debtor(other than theNecessaryBank Guarantees),whetheranyclaimsin respectthereof havebeenadmitted in theCIRP or not,alongwithanyother contingentorfufure claims,liabilities and/orcommitmentsofanynature whatsoeverissuedby,oronbehalfof,or atthebehestof, theCorporate Debtor, orincurredorundertakenbythe CorporateDebtor(asthecasemaybe), tilltheClosing Date, whetherassertedor unasserted,whether admittedornot, crystallizedoruncrystalTized,knownor unknown,securedorunsecured, disputedorundisputed, whetheror not set out in theInformation Memorandum,theVirtualDataRoom, thebalancesheetsoftheCorporate Debtorortheprofitand lossaccount statementsof the CorporateDebtor,will be,andbedeemedtobe, permanently extinguished,byvirtueofthe NCLT Approvalof thisResolution Planandall	Asper the applicable provisionsof Law

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MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.l664lMB/20171} In re: Resolntion plan of CfuEST STEEL AND POWER PVT, LTD

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Clause	Dispensation	Orders thereon
	liabilitiesoftheCorporateDebtorin relationtheretowillbewritten-offinful1. TheCorporateDebtoror the SPV or the ResolutionApplicantsshall atno point oftime be, directlyorindirectly,held responsible orliableinrelationthereto.
2.2.4. (viii)2	Norightsofsubrogation,indemnityor actionagainstthe CorporateDebtorwill surviveandallrelatedfinancial liabilitiesoftheCorporateDebtor, whether admittedornot,dueor contingent,assertedorunasserted, crystalhzedoruncrystalTized,knownor unknown,disputedorundisputed,in relation toanyperiodtilltheInsolvency CommencementDateorarisingon accountof the ffansactions contemplatedinthisResolutionPlan (includingthe acquisitionofcontrol by theResolutionApplicantsoverthe CorporateDebtorpursuanttothis ResolutionPlan)inrelationtoany guarantee or otherthtrdpartysecurityof anyrLature,inrespectofwhichsuch thirdparties("ThirdPartySecurity Provider") mayhaverightsagainstthe CorporateDebtor,whichmayhave beenprovidedorissuedbyanyPersonin supportof, forthe benefitof, or atthe behestoftheCorporateDebtororfor anyotherreason whatsoever("Credit Enhancement"),shallstandcancelled andterminatedwithoutanyliabilities accruingtotheCorporate Debtor orthe ResolutionApplicant,andwillbe treatedasextinguished,asthecasemay be, on the Effective Date, providedthat the ResolutionPlan isimplemented on or before theClosingDate.Itisclarified thatextinguishmentofanysubrogation orindemnity rightsofany Third-Party SecurityProvidershallbewithout preiudiceto therishtsofthe	Asper the applicable provisionsof Law

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MA No. 125/CTB|2020 In TP No. 205lCTBl2019 learlier^{CP (IB)No.l664lMBl2017l} In re: Resolution plan of CREST STEEL AND POYVER PVT. LTD

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Clause	Dispensation	Orders thereon
	beneficiariesof any Credit Enhancementtomake claimsagainst suchThird-Party SecurityProviders (includingforanylossessuffered by suchbeneficiariesinrelationtosuch CreditEnhancements).It isalso clarifiedthatthe issuerofany guarantees issuedinsupport of, forthebenefitof, or atthebehestoftheCorporate Debtor, will doallactsandexecuteall agreements/documentsasmaybe necessarytorecordtheextinguishment ofthesubrogationrightsofsuch gvarurltoroftheCorporateDebtor,if requiredbythe CorporateDebtor orthe ResolutionApplicant,asthecasemay be.
2..2.6.	Anyandallclaims,rightsand entitlementsof anyactualorpotential FinancialCreditorsoftheCorporate Debtor, includingany conffactsentered into bythe Corporate Debtorwithsuch Creditors,notassignedoraddressed aboveinthisSection2.2(Treatmentof FinancialCreditors),whetherclaimedor unclaimed, admittedornot,dueor contingent,assertedorun-asserted, crystallized oruncrystalTized,knownor unknown,disputedorundisputed, presentorfuture,inrelationtoany periodpriortotheClosingDate orany monetaryorfinancial claims,dues, demandsorobligationsowedtothe FinancialCreditors arisingonaccount oftheacquisitionoftheCorporate DebtorbytheResolutionApplicants pursuanttothisResolutionPlan,oron accountofthemeasurescontemplated underthisResolutionPlanshallbe deemed tobepermanently extinguished, and all the conffacts enteredintobythe CorporateDebtorwithsuchCreditors willbe deemed to beterminatedwithout	Asper the applicable provisionsof Law

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MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No. 1664lMB 12011)} In re; Resolution plan of CREST STEEL AND^{POWER PVT, LTD}

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Clause	Dispensation	Orders thereon
	anyliabilities, claimsorobligations whatsoever arisingoutoforinrelation tosuch contracts,byvirtueof the order oftheNCLTapproving this Resolution Planand the CorporateDebtor/SPV,or theResolutionApplicants shallatno pointoftime, directlyorindirectly,have anyobligation,liabilityordutyin relationthereto.
2.2.9.	Anyinvocationorappropriationor otherenforcementactionaheady undertakeninrespectofany Encumbrance,security,guararLtee, pledge,chargeorcollateralgranted or createdbytheCorporateDebtororin respectofanyAssetsof theCorporate Debtorinconnectionwithany Outstanding Financial orany other debt orobligationoftheCorporateDebtor,in relationtoany periodpriortothe Closing Date, shallstandautomatically renderedinfructuous andcancelled and deemed nul1 andvoidandallliabilities andobligationsinrelationtosuch Encumbrance,security,guarantee, pledge,charge,orcollateralgrantedor createdby the CorporateDebtorshall be deemedtohave beenpermanently extinguishedontheapprovalofthis ResolutionPlanbytheNCLT.This clauseiswithoutprejudicetothe proceedsthatmay haveaheadybeen receivedbythefinancialcreditorson accountof anyinvocationor appropriationprior to the commencementoftheCIRPPeriod againsttheCorporateDebtor.	Asper the applicable provisionsof Law
2.2.r0	IfanyPersonhasanycalloption, put optionoranyrightofpre-emptionin respectof thesecuritiesof the Corporate Debtor includinganyrightoffirst refusal,rightoffirstoffer,allsuch options and riehtsinrelationtoany	Not Allowed.

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MA No. l25lCTBl2020 In TP No. 205lCTBl2019 fearlier^{CP (lB) No.1664/M8120111} ln re: Resolution plan of CREST STEEL AND POWER PVT, LTD

¶282

Clause	Dispensation	Orders thereon
	periodpriortothe ClosingDateshallbe deemed tobepermanently extinguished, andallsuchrightsagainstthe Corporate Debtorwillbedeemedtobeterminated without anyliabilities,claimsor obligationswhatsoeverarisingout ofor in relation tosuchconffacts, byvirtueof theorderofNCLTapprovingthe Resolution P1an,andtheCorporate Debtor,SPVor theResolution Applicantssha1latno pointoftime, directlyorindirectly,haveany obligation,liabilityordutyinrelation thereto.
2.3.1.(1v)	Anyandallrights andentitlementsof anyactualorpotentialOther Operational Creditors(includingany personwhomay claimtobesucha Creditorbywayofexerciseofrights underApplicableLawsorequity), whethersuchclaimsrightsor entitlements(includinganydemandfor arlylossesordamages,principal, interest,compound interest,penal interest,liquidateddamages,andother chargesakeady accrred/accruingor in connectionwithanythirdpartyclaims) have been submittedtotheResolution Professionalornot,admittedornot, whetherornotsetout intheInformation Memorandum,theVirtualData Room, thebalancesheetsoftheCorporate Debtorortheprofitand lossaccount statementsoftheCorporateDebtor, being dueordueor contingent,asserted orun-asserted,crystallizedor uncrystallized,knownorunknown, disputedorundisputed,presentorfuture inrelationtoanyperiodpriortothe ClosingDateoronaccountofthe measures contemplatedunderthis Resolution Plan, shall bedeemedtobe permanentlv extinsuishedwitheffect	Asper the applicabte provisionsof Law

¶283

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶285

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.1664/MBl20l7l} In re: Resolution plan of CREST STEEL AND POWER PVT. LTD

¶286

Clause	Dispensation	Orders thereon
	fromthe Effective Datebyvfutueofthe orderoftheAdjudicatingAuthority approYingthisResolutionPlan, providedthat theResolutionPlanis implementedon orbeforetheClosing DateandtheCorporateDebtor,SPVor theResolutionApplicantsshal1atno pointoftime, directlyorindirectly,have anyobligation,liabilityordutyin relationthereto.
2.3.t.(v)	Anyliabilitiesinrespectofadvances fromcustomers,tradepayables, incrementalclaims that maybe madeby Operational Creditors, claimsinrespect ofcorporatesocialresponsibility, expensespayable, employeebenefits, liabilitiesonaccountofpurchase commitmentstovendors,orother liabilities, whether claimedor unclaimed, admittedornot,dueor contingent,assertedorunasserted, crystalhzedoruncrystalTized,knownor unknown,securedorunsecured, disputedorundisputed,presentor future,whetherornotsetoutinthe InformationMemorandum,the balance sheetsoftheCompany ortheprofitand lossaccountstatementsof theCompany or theListof Creditors, inrelationto any periodpriorto theInsolvency Commencement Datewillbewrittenoff infullandwillbedeemedtobe permanently extinguishedwitheffect fromthe Effective Dateby virtue ofthe orderoftheAdjudicatingAuthority approvingthisResolutionPlan, providedthat theResolutionPlanis implementedonorbeforetheClosing Date,and all consequentialliabilities,if any, thatmayariseinfuture (including, withoutlimitation,forany tax, penalty, interest,finesorfees)shal1stand extinguishedandthe Companv.SPVor	Asper the applicable provisions Law of

¶287

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¶289

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶290

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 fearlier^{CP (IB) No.1664/MB/20171} In re; Resolution plan of CREST STEEL AND POWER^PVT. LTD

¶291

Clause	Dispensation	Orders thereon
	theResolutionApplicantsshal1atno point oftime be, directlyorindirectly, heldresponsibleorliableinrelation thereto, orberequiredtorefund/return any such amounts.
2.3.1.(vi)	Anyandallother claims or demands,or liabilitiesorobligationsowedor payable,includingbut notlimitedto any Outstanding OperationalDebtor under anycontractsenteredintobythe Company,amountspayableby wayof damages,penalties,liquidateddamages, anydemandforanylossesordamages, liquidateddamages,indemnification, principal,interest, compoundinterest, penal interest,liquidateddamages, and other charges alreadyacqued/accruing orinconnectionwithanythrdparty claims,toanyactualorpotential creditor, vendor,contracting counterparty,GovernmentAuthority, claimantor anyotherpersonwhatsoever (including,fortheavoidanceofdoubt, but notlimitedtotheOperational CreditorsoftheCompanyandits Promoters, directorsand otherRelated Parties),whether claimed or unclaimed, admittedornot,dueorcontingent, assertedorunasserted,crystallizedor uncrystallized,knownorunknown, securedorunsecured,disputedor undisputed, presentorfuture,whether ornotsetoutintheInformation Memorandum,thebalancesheetsofthe Company ortheprofitand loss account statementsoftheCompany ortheListof Creditors, in relation toanyperiodprior totheInsolvencyCommencement Date, willbewrittenoffinfuI1and shallbe deemedtobepermanently extinguished witheffectfromthe Effective Dateby virtueofthe orderoftheAdjudicating AuthoriWapprovingthisResolution	Asper the apphcable provisionsof Law

¶292

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶295

MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No. 1664/MB/20 l7l} In re; Resolntion plan of CfuEST STEEL AND POWER PVT, LTD

¶296

Clause	Dispensation	Orders thereon
	P1an,provided that the Resolution Plan isimplemented onor before theClosing Date, andtheCompany,SPVorthe ResolutionApplicantsshalI atno point oftime be, directlyorindirectly,held responsible orliable in relationthereto.
2.3.1.(vii)	Anyandall rightsclaims(includingany SubJudice Claims) and entitlementsof anyactualor potentialperson,whether claimedorunclaimed, admittedornot, dueorcontingent,assertedor unasserted, crystalhzedor uncrystallized,knownorunknown, disputed or undisputed,presentorfuture inrelationtoanyperiodpriortothe InsolvencyCommencementDate,shall bedeemedto bepermanently extinguishedwitheffectfromthe Effective Dateby virtue of theorderof theAdjudicatingAuthorityapproving thisResolutionP1an,providedthatthe Resolution Planisimplementedonor beforetheClosingDateandthe Company,SPVortheResolution Applicants shallatno pointoftime, directlyorindirectly,haveany obligation,liabilityordutyinrelation thereto.	Asper the applicable provisionsof Law
2.3.1.(viii)	A11undertakingsorobligationsofthe CompanyinrespectoftheOther Operational Creditorsshallbedeemed tobeterminated,andallliabilities, damagesorclaims arisingtherefrom, whether claimedorunclaimed, admitted ornot,dueorcontingent,assertedor unasserted,crystallizedor uncrystalTized,knownorunknown, disputedorundisputed,presentor future,inrelationtoanyperiodpriorto theInsolvencyCommencementDate, shallbedeemedtobepermanently extinguishedwitheffectfromthe Effective Dateby virtue of theorderof	Asper the applicable provisionsof Law

¶297

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¶298

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¶299

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (IB) No.1664/MBl2017l} In re: Resolution plan of CREST STEEL AND POWER PI/T. LTD

¶300

Clause	Dispensation	Orders thereon
	theAdjudicatingAuthorityapproving thisResolutionPlan, provided thatthe Resolution Planisimplementedonor beforetheClosingDateandthe Company ortheResolution Applicants, shallat nopoint oftimebe,directlyor indirectly, heldresponsibleorliablein relationthereto.
2.3.1.(tx)	Withrespecttotheinvestmentsmadeby the Company (including but notlimited toinvestmentsinequityshares and/or preferenceshares (asmay be applicable) ofanypersonorentity),arry commitmentbytheCompanytomake anyfurtherinvestments orprovideloans infuture,shall bedeemedextinguished byvirtueof theorder oftheAdjudicating AuthorityapprovingthisResolution Planandsuchinvestmentsaheady made, shouldnotbe diluteduntilthe ClosingDatebytheResolution Professional. OntheEffectiveDate,any liabilitiesoramounts duetothe Related PartiesoftheCompanyoranyother personorentity(whichhavenotbeen admitted bytheResolutionProfessional or whichhave arisenduringtheCIRP periodtil1the acquisitionofcontrolof theCompanybytheResolution Applicant) inrespectof theinvestments madebytheCompanyinsuchentities shallstand extinguished,providedthat the ResolutionPlanis implementedon orbeforetheClosingDate andthe Company,SPVortheResolution Applicant,shall atnopoint oftimebe, directlyorindirectly,held responsibleor liableinrelationthereto.Onand from theClosingDate,theResolution Applicantsreseryetherighttodealwith theinvestments madeby theCompany (includingbut notlimitedto investments inequirysharesand/or^preference	Asper the applicable provisionsof Law

¶301

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¶302

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶303

MA No. 125lCTBl2020 In TP No, 205lCTBl20l9 learlier^{CP (lB) No,1664/MBl20l7)} ln re; Resolution plan of CREST STEEL AND^{POWER PVT, LTD}

¶304

Clause	Dispensation	Orders thereon
	shares(asmaybeapplicable)inany personorentity),inanymanneras deemedfit.Fortheavoidanceofdoubt, itisclarifiedthatinrespectofthe aforesaid contractswhichare terminated,&frVfinancialliabilitiesof afiyparty totheCompany shallcontinue and shallnotbe deemedextinguished.
2.3.1.(xi)	Forabundantclarity,dtyandalldues (inthenatureofclaims)payableto Government and StatutoryAuthorities, (other thanpaymenttoEmployeeand Workmen),shall betreatedasfollows: (a)allclaimsordemandsmadeby,or liabilitiesor obligations owedor payable toorassessedby,any Governmentand StatutoryAuthority,inrelationtoany dues,directTaxes(includingforany previousorcurrentassessment year(s)), indirectTaxes, duties(includingstamp duties), penalties,fees,interest,fines, levies,cesses,assessmentsoradditions oranyotherchargesorpayments whatsoeveron the CorporateDebtoror inrelationtotheCorporateDebtor, whether or notsuchClaims ordemands areadmitted,due orcontingent,asserted or unasserted,crystallizedor uncrystallized,assessedorunassessed, knownorunknown,securedor unsecured, disputed or undisputed; (b)anyfinar.cialliabilitiesinrelationto arLy consent, permission,privilege, entitlement, exemption, benefit,license orapprovalgtantedtotheCorporate Debtor,orinrelationtotheCorporate Debtor,whetheror notsuchconsent, permission,privilege,entitlement, exemption, benefit, licenseorapproval is subsisting,lapsedorexpired; (c)allfinancialliabilities(including withoutlimitation,foranypenalty, interest.fines orfees)andotherliabilities	Asper the applicable provisions Law. of

¶305

gd I --1

¶306

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¶307

IN THE NATIONAL COMPANY LAW TRIBUNAL CUT'TACK BENCH

¶308

MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No.I 664lMB/20I 7l} In re: Resolution plan of CKEST STEEL AND POWER PVT. LTD

¶309

Clause	Dispensation	Orders thereon
	arldobligationswhich mayhavea financialimpactontheCorporate Debtor,inrelationto(1)any investigation,inqurry,show-cause, notices,causesofaction,suits,claims, disputes,litigation,arbitrationorother judicialorregulatoryoradministrative proceedingswhethercivilorcriminal against,or inrelationto, orin connectionwiththeCorporate Debtor ortheaffairsoftheCorporate Debtor, pendingorthreatened;(i1)anynon- complianceofprovisionsofanylaws, rules,regulations,directions, notifications,circulars,guidelines, policies,approvals, consentsor permissions;(iii)crosssubsidiesavailed bytheCorporateDebtor; and(iv)any andallactvalorpotential rightsand entitlementsof theCenffal Government, theStateGovernment,anyregulatory or local authorityorbody oranyagencyor insffumentalitythereoforanyother partyorentity (under anyagteement, lease, license,approval,consent, permissionorprivilege)whichmay have aftnancialimpactontheCorporate Debtor, whether admittedornot,dueor contingent,assertedorunasserted, crystallized or uncrystallized,knownor unknown,securedorunsecured, disputedorundisputed, whetherornotsuchclaim,demand, liabilityissetoutintheInformation Memorandum,VirtualDataRoom,the balancesheetsortheprofitandloss accountstatementsoftheCorporate Debtor,inrelationtoany period uptill the ClosingDate,willbewritten offin fulland shall be, and bedeemedtobe, permanently extinguishedwitheffect fromthe Effective Dateby virtueofthe orderoftheAdiudicatine Authority

¶310

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¶311

¶312

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶313

MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No.1664/MBl20l7l} In re: Resolution plan of CREST STEEL AND POV{IER PVT, LTD

¶314

Clause	Dispensation	Orders thereon
	approving this Resolution Planinterms ofthisResolution Plan, providedthat the ResolutionPlanis implemented on orbeforetheClosingDate, andthe Resolution Applicants or theCorporate Debtor,SPVshallatnopointof timebe, directlyorindirectly,held responsibleor liableinrelationthereto.Forthe avoidanceofdoubt,thecriminal proceedingswillbeabatedsubjectto ApplicableLaw.Further,forthe avoidanceofdoubt andwithout prejudicetothegeneralityofthe foregoing,itis expresslyclarifiedthat no liabilities,claimsorobligations whatsoever arisingoutof or inrelation tocriminalproceedings,shallarisein respectoftheCorporateDebtororthe ResolutionApplicantswhoshallatno pointoftime, directlyorindirectly,have anyobligation,liabitityordutyin relationthereto.Ifanycriminal proceedingsinitiatedagainst the officers oftheCorporateDebtorpriortothe Effective Datecannot be disposedof by theAdjudicatingAuthorityunder Applicable Law,thesameshallcontinue againstsuchofficers.However,any liabilityaccruingtotheCorporate Debtor orthe ResolutionApplicantsas aresultofsuchcriminalproceedings againsttheofficersoftheCorporate Debtorshallbedeemedtohavebeen permanently extinguishedbytheorder oftheAdjudicatingAuthorityapproving this ResolutionPlan.
2.3.1.(xii)	Notwithstandinganythingtothe corLtrarycontainedintheIBC orany otherlawforthetimebeinginforce, the liabilityofthe CorporateDebtorforarr offencecommittedpriortothe commencementoftheCIRP,ifany, sha1lcease,and neithertheCorporate	Asper the applicable provisionsof Law

¶315

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¶316

IN THE NATIONAL COMPANY LAW TRIBUNAL CUT'TACK BENCH

¶317

MA No. 125lCTBl2020 In TP No. 205lcTBl2jlg learlier^{CP (lB) No.l664lMB 120111} ln re: Resolution plan of CREST STEEL AND^{POWERPVT. LTD}

¶318

Clause	Dispensation	Orders thereon
	DebtornortheResolutionApplicants shall beliabletobe^prosecutedforany such offenceonandfromtheNCLT Approval Date,Ifaprosecutionhas beeninstituted during theCIRPagainst theCorporateDebtor,theCorporate Debtorshallstandfullydischargedfrom theNCLTApprovalDate.
2.3.1.(xiv)	UnderSection115JBoftheIncome-Tax Act,1961,assesseecompanyfor which arehabrlitationscheme wasapprovedor reference was madeunderthe^provisions of theerstwhileSickIndustrial Companies (Special Provisions), Act, 1985wasnotsubjecttominimum altematetaxuntilthe networthbecomes positive.Accordingly, abenefit would beextendedto aresolutionplan approvedinaccordancewith IBCsince IBCsupersedesallotherApplicableLaw anddealswiththesame subjectmatter as theerstwhileSickIndustrial Companies (Special Provisions), Act, 1985.Inlight ofthis,uponapprovalof this Resolution Plan bytheAdjudicating Authority,the Cenffal BoardofDirect Taxes,DepartmentofRevenue, MinistryofFinance,Governmentof India(hereinafterreferredtoas "CBDT/DOR")shallbe deemedto:⁽ⁱ⁾ exempt income/gain/profits,ifany, arisingas aresultof givingeffecttothe ResolutionPlanfrombeing subjectedto minimumalternatetaxinthe handsof Company undertheprovisionsofthe Income-taxAct,1961;(i,exempt income/gain/profrts,ifany, arisingas aresult ofgivingeffectto theResolution Plan frombeingsubjectedtotaxinthe handsoftheCompanyunderthe provisions of the Income-taxAct,1961; (iii)grant anexemptiontoreceiveall incomewithoutdeductionofany Tax	Thisisforthe appropriate authorities to consider.

¶319

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IN TI{E NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶322

MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No. 1664/MB/20 I 7l} In re: Resolution plan of CfuEST STEEL AND POWER^PVT, LTD

¶323

Clause	Dispensation	Orders thereon
	undertheprovisionsofChapterXVII-B of the Income-taxAct,196tforaperiod of10(ten)yearsfromthe ClosingDate; and(iv)waive allLiabilitiesinrespectof Taxes(includinginterestandpenalty) arisinginrespectofperiodsuptothe Closing Date,includingsuchLiabilities fortheperioduptotheClosing Date thatmaycrystallizesubsequenttothe ClosineDate.
2.3.1.(xv)	A11duesundertheprovisionsofthe IncometaxAct,L96l(asamendedfrom timetotime)("Income-taxAct"), including taxes, duties,penalties, interest, fines,cesses,charges, unpaid taxdedvctedatsource ortax collectedat sourcewhether claimedorunclaimed, admittedornot,dueorcontingent, whetherornotsetoutintheprovisional balance sheet, the balancesheetsofthe CorporateDebtor ortheprofitandloss accountstatementsoftheCorporate Debtor ortheListof Creditors,asserted orunasserted,assessedornot, whethera demandhasbeen raisedornot, crystallized or uncrystallized,knownor unknown,securedorunsecured, disputedorundisputed,presentor fufure,inrelationtoanyperiodpriorto theClosingDateandOperational CreditorPaymentspursuanttothis ResolutionPlanoranymonetaryor financial claims,dues,demandsor obligationsarisingonaccountofthe acquisitionofcontrolbythe Resolution Applicants/SPV, asthecasemaybe, overtheCorporateDebtorpursuant to thisResolutionPlan,shallstand extinguishedwitheffectfromEffective Datebyvirtueoftheorderofthe AdjudicatingAuthorityapprovingthis ResolutionPlan,providedthatthe Resolution Planisimplementedonor	Thisisforthe appropriate authorities to consider

¶324

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶326

MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.1664/MB12017)} ln re: Resolution plan of CREST STEEL AND POWER PVT" LTD

¶327

Clause	Dispensation	Orders thereon
	before theClosingDate,andneitherthe CorporateDebtornortheResolution Applicantsor theSPYshallbeliableto payanyamountagainst such dues, and suchamounts shallbewrittenoff.
2.3.1.(xvi)	The CBDT/DORshallbedeemed to havegtanted exemptionfromthe applicabilityofSection281ofthe IncomeTaxAct,1961including obtaining no-objection certificate from incometaxauthoritiesinrespectofall thependingproceedingsanddues (includinginterestand penalty)ofthe Companyarisingforperiodsuptothe ClosingDate(includingsuch proceedingsandduesfor periodsprior to theClosingDatethatmaycrystallize subsequenttotheClosingDate). Further,CBDT/DORshallrestrict/ resffainfromtreatinganyffansactions contemplatedinthis Resolution Planas beingvoid ornon-compliantwithany provisionsof theIncome-tax Act,196L.	Thisisforthe appropiate authorities to consider
2.3.1.(xvii)	A11TaxLiabilities(includinginterest andpenalty)and taxproceedings arising inrespectofperiodsuptotheClosing Date,includingsuchLiabrlities/ proceedingsforperiodsuptothe ClosingDatethatmaycrystallize subsequenttotheClosingDatein respectofon-goingor potentialincome taxlitigationsatalllevelssha1lbe deemedtobepermanently extinguished witheffectfromthe Effective Date by virtue ofthe orderoftheAdjudicating AuthorityapprovingthisResolution Plan, provided that the Resolution Plan isimplemented onor beforethe Closing DateartdtheCompanyorthe Resolution Applicants, shallatnopoint oftime be, directlyorindirectly,held responsible orliable in relationthereto.

¶328

TJ I

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶331

MA No. 125lCTBl2020 In TP No. 205lcTBl2jlg [earlier^{CP (lB) No.1664/MB12017]} In re; Resolution plan of CREST STEEL AND POWER PVT, LTD

¶332

Clause	Dispensation	Orders thereon
2.3.1.(xviii)	A11notices,assessments^(whether commencedornot),appellateorother proceedingspendingorthreatenedin relationtotheCorporateDebtor,in relationtoarLyperiodpriortothe EffectiveDateoranymonetaryor financial claims,dues,demandsor obligationsarisingonaccountofthe acquisition of controlbytheResolution Applicants/SPV, asthecasemaybe, overtheCorporateDebtorpursuant to this Resolution Plan oronaccountofthe measures contemplatedunderthis Resolution Plan, shallstandterminated andwithdrawn andallconsequential financialormonetaryliabilities,ifany, shallstandextinguishedandbe consideredasnotpayablebythe Corporate Debtor byvirtue ofthe order oftheAdjudicatingAuthorityapproving thisResolutionPlan andarryre- assessment,revisionor other proceedingsunder the provisionsofthe Income-taxActwouldbe deemedtobe barredinrelationtoanyperiodpriorto the Effective Date, byvirtueoftheorder oftheAdjudicatingAuthorityapproving thisResolutionPlanandtheCorporate Debtor,SPVor theResolution Applicantsshal1at nopointof timebe, directlyorindirectly,held responsibleor liableinrelationthereto.Itisclarified that theResolution Applicantsshall makeorcausetobe made,on behalfof the CorporateDebtor,such applications forabatement,withdrawalordismissal ofsuch^proceedings.whereverrequfued.	Asper the applicable provisionof relevant laws.
	TheCorporateDebtor,SPVorthe ResolutionApplicantsshallnot,atarty point oftime,beheld financially liable under theprovisionsinrelationtothe liabilityofthe CorporateDebtorasper Section170oftheIncomeTaxAct,1961	Asper the applicable provisionof relevant laws

¶333

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¶334

¶335

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACI( BENCH

¶336

MA No. l25lCTBl2020 In TP No. 205|CTR/2019 learlier^{CP (lB) No.l664lMB/20171} In re: Resolution plan of CREST STEEL AND POW.ER PVT, LTD

¶337

Clause	Dispensation	Orders thereon
	inrespectofanytransaction carriedout beforetheEffectiveDateor contemplated undertheResolution Plan oronaccountofanyactiontaken pursuanttothisResolutionPlan including acquisitionofcontrolbythe ResolutionApplicants/SPV,asthecase maybe,overtheCorporateDebtor pursuanttothisResolution Plan.This sha1lnotbeconstruedasconditionality totheimplementationof thisResolution Plan.TheResolutionApplicantswill notwithdrawtheResolution Planifthis reliefisnoteranted.
2.3.7.(xx)	TheCorporateDebtorshallbeentitled, inaccordancewithandsubjectto Applicable Laws,tocarry forwardand setoffallthebrought forwardbook lossesandunabsorbed depreciationas showninthebooksofaccountand consideredinthe returnsfiled underthe Income-taxAct.1967.	Asper the apphcable provisionof relevant laws
2.3.1(xxi)	A11actual andpotentialduesand financialand monetaryliabilitiesunder the provisionsofanyindirecttaxlaws, including but notlimited to,the Central ExciseAet,l9M,theFinance4ct,7994 (ServiceTax), theCustomsAct,1962, theValue AddedTaxAct,2005,the CenffalSalesTaxAct,1956,the CENVATCredit Rules,2004,the Central GoodsandServicesTaxAct, 2017,the Integrated Goods andServices TaxAct,2077andtherespectiveState GoodsandServicesTaxAct,2077, (eachasamendedfrom time to timeand includingtherules madethereunder) includingentrytaxes,salestaxdeferual liabilities, duties,penalties,interest, fines,cesses,charges,unpaidtax deductedatsourceortaxcollected at source,Octroitax,stampduty,local body tax,municipaltaxes,or other fiscal	Asper the applicable provisionof relevant laws

¶338

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¶339

¶340

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶341

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No. 1664/MB12011)} ln re: Resolution plan of CREST STEEL AND POWER PVT. LTD

¶342

Clause	Dispensation	Orders thereon
	incentiveswhetherclaimedor unclaimed, admittedornot,dueor contingent, whetherornotsetoutinthe provisionalbalance sheet,thebalance sheetsoftheCorporateDebtororthe profitand lossaccountstatementsof the CorporateDebtorortheListof Creditors,assertedorunasserted, crystallizedoruncrystallized,known or unknown,assessedornot,whethera demandhas beenraisedornot,secured orunsecured,disputedorundisputed, presentorfuture,inrelationtoany periodpriortotheEffectiveDate,or arisingonaccountofthe acquisitionof controlbytheResolution Applicants/ SPV,as thecase maybe,ove(the CorporateDebtorpursuanttothis ResolutionPlan, shallstand extinguished byvirtueof the order of the AdjudicatingAuthorityapprovingthis ResolutionPlanandtheCorporate Debtorshallnotbe liabletopayany suchclaim,andsuch amounts shallbe writtenoff.Allnotices,assessments (whethercommencedor not),appellate orotherproceedingspendingor threatenedinrelationtotheCorporate Debtor, in relation toany periodpriorto theClosingDate orarisingonaccount oftheacquisitionofconffolbythe ResolutionApplicantsoverthe CorporateDebtorpursuanttothis Resolution Plan,oronaccountofthe measures contemplatedunderthis ResolutionPlanshal1stand terminated and withdrawn andallconsequential liabilities,if dry, shallstand extinguishedandbeconsideredasnot payablebytheCorporateDebtorby virtueofthe orderofthe Adjudicating AuthorityapprovingthisResolution Plan and anyre-assessment,revision or

¶343

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¶344

IN TI{E NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶345

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.l664lMB/20171} In re: Resolution plan of CKEST STEEL AND POWER^PVT, LTD

¶346

Clause	Dispensation	Orders thereon
	otherproceedingsunder theprovisions ofanindirect taxlaw wouldbedeemed tobebaruedinrelationtoany^period priortothe ClosingDate, by virtueof the orderoftheAdjudicatingAuthority approvingthisResolutionPlanandthe CorporateDebtorortheResolution Applicantsshall at nopoint oftimebe, directlyorindirectly,held responsibleor liableinrelationthereto.
2.4.4.	A11Employeesand Workmen shallbe deemedtohaverelinquishedanyClaim foranyduesother than the Workmen andEmployees Payments. Other thanin respectof theWorkmenand Employees Payments,anyandallclaimsor demandsmadeby,orliabilitiesor obligationsowedo(payableto, (includinganydemandforanylossesor damages,orinterest,backwages, compensation, penal interest,liquidated damagesakeady accrued/ accruingor inconnectionwithanythirdparty claims,oranyclaimsmadebyany personwhomayclaim tobea Creditor bywayofexerciseofrightsunder Applicable Laws orequity) anypresent orpast,directorindirect, permanent or temporaryemployees,conffactworker and/orworkmenoftheCorporate Debtor, whether admittedornot,dueor contingent,assertedorun-asserted, crystalhzedoruncrystaTTized,knownor unknown,securedorunsecured, disputedorundisputed,presentor future,whetherornotsetoutinthe Information Memorandum, theVirtual Data Room,thebalancesheetsofthe CorporateDebtor ortheprofitandloss accountstatementsoftheCorporate Debtor,inrelationtoany perioduptill theInsolvencyCommencementDate, wil1bewrittenoffin fullandshal1 be	Not Allowed. Asper the applicable provisionof relevant laws

¶347

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¶348

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶349

MA No. 125lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No.l664lMB 120171} In re: Resolution plan of CfuEST STEEL AND POWER PVT, LTD

¶350

Clause	Dispensation	Orders thereon
	deemed to be,permanentlyextinguished witheffectfrom theEffective Date by vfutueofthe orderoftheAdjudicating AuthorityapprovingthisResolution Plan. The ResolutionApplicants orthe CorporateDebtorshallatno pointof timebe,directlyorindirectly,held responsible orliable in relationthereto.
2.5.	A11margin money/ fixeddepositwith lien (ifany)providedbytheCompany or anyEncumbrancesofsimilar nature, or marginassurances,Encumbrances or liensthatexistbyoperation of ApplicableLaw,alongwithanysimilar corrtractval comfortsprovidedbythe CompanypriortotheEffectiveDate, shallbereleasedimmediatelyonthe EffectiveDate and shallreverttothe Company.Further,any claimarising fromanysuch depositorcollateral, whethersetouthereinor not,whether admittedornot,dueorcontingent, assertedorunasserted,crystallized or uncrystallized,knownorunknown, securedorunsecured,disputedor undisputed, whether ornotsetout inthe InformationMemorandum,theData Room,thebalancesheetsofthe Company ortheprofitand loss account statementsoftheCompany,tillthe Effective Date,willbewrittenoffinfull andshallbe,andbedeemedtobe, permanentlyextinguishedbyvirtueof the orderoftheAdjudicatingAuthority approvingthisResolutionPlanandthe Companyorthe Resolution Applicants shall atnopoint oftimebe,directlyor indirectly, heldresponsibleorliablein relationthereto. A11titledeedsandother documents heldbyanyCreditororthird paffy(astrusteeor otherwise) inrelation tothesameshallbeimmediately	Asper the applicable provisionof relevant laws

¶351

Sd I

¶352

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¶353

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶354

MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No.l664lMB 120111} ln re; Resolution plan of CREST STEEL AND POWER PVT. LTD

¶355

Clause	Dispensation	Orders thereon
	releasedinfitarLdproperconditionto theCompanyon theEffectiveDate.
2.8	A11financialliabilitiesarisingoutof: (i) alladverseinquiries,investigations, notices,causesofaction,suits,claims, disputes,litigation,arbitrationorother judicial,regulatoryoradministrative proceedingsagainst,theCorporate DebtorortheaffairsoftheCorporate Debtor,inrelationtoarLymatter whatsoeverincludingeconomic matters, whether pendingorthreatened, present orfuture, (includingwithout limitation, anyinvestigationbyanyGovemment andStatutoryAuthorities)thathave beeninitiated(includingwithout limitation,orarethreatened("Dispute") tobeinitiatedagainsttheCorporate Debtor(including thoseproceedings thatrelatetotheCorporateDebtor)at anytimetillthe EffectiveDate;and (i1)anyEncumbranceorcollateral (whetherenforced, crystallizedor proceededwithor not)over theAssets (createdand/orperfectedfordebt avarledbytheCorporateDebtorora thirdparty)(collectively"Security"), thatexistsbyoperationofApplicable Law,orinconnectionwithanydebt owedtoFinancialCreditors(tothe extentsuch debt hasnotbeen acquired orrestructuredinaccordancewiththe termsandconditionssetoutherein), Operational Creditors, OtherCreditors oranyother debtorobligationofthe CorporateDebtor,or'inrelationtoa thtrdparty (including aRelated Party) whose obligations weresecuredbythe CorporateDebtorbycreationofany SecurityinfavourofanotherPerson, at anytimetilltheEffectiveDate,	Asper the applicable provisionof relevant laws. The appropriate authorities/insti tutionto consider

¶356

¶357

Page47 of6l

¶358

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶359

MA No. l25lCTBl2020 ln TP No. 205lCTBl2019 fearlier^{CP (lB) No.1664/MB12017)} In re: Resolution plan of CREST STEEL AND POWER PVT, LTD

¶360

Clause	Dispensation	Orders thereon
	shallstandautomaticallyrevoked, released, cancelled,withdrawn, dismissed anddeemednullandvoid(as thecasemaybe)andallfinancial obligationsinrelationtosuchSecurity orDisputeshallbepermanently extinguished ontheEffectiveDate,after paymentsbeing madetoNLysuch Creditorsifmandatorily required in accordancewiththeprovisionsofthe IBC.Further,arryClaimarising from anyDispute orSecurity,whethersetout hereinor not,whether admittedornot, dueorcontingent,assertedorun- asserted,crystallizedoruncrystalhzed, knownorunknown,securedor unsecured,disputedorundisputed, presentor future, whether ornotsetout inthe InformationMemorandum,the VirtualData Room,the balancesheets of theCorporateDebtoror theprofitand lossaccountstatementsof the Corporate Debtor,tilltheEffective Date or arising onaccountof this Resolution Plan,will bewrittenoffinfullandshallbe,andbe deemed to be,permanentlyextinguished byvirtueoftheorderof theAdjudicating AuthorityapprovingthisResolution Planandthe CorporateDebtor,SPVor theResolutionApplicantssha1latno point oftime be, directlyorindirectly, heldresponsibleorliableinrelation thereto.Al1titledeedsandother documents heldbyanyCreditororthird party(asffustee or otherwise)in relation tosuch Security shallbeimmediately releasedinfitand properconditionto theCorporateDebtor.Anyinvocation orappropriationorotherenforcement actionaheadyundertakenagainstthe CorporateDebtorinrespectofany Encumbrance,gvatarLteeorcollateral or anyother debtorobligationofthe

¶361

¶362

Page 48 of6I

¶363

iN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶364

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 fearlier^{CP (lB) No.1664/MB120171} In re: Resolution plan of CNEST STEEL AND POWER PVT, LTD

¶365

Clause	Dispensation	Orders thereon
	CorporateDebtor,atthe Effective Date shallstand automatically revokedand cancelledandwithdrawn anddeemed nu1landvoidandallliabilitiesand obligationsinrelationtosuch Encumbranceorcollateralshallbe deemedtohave been^permanently extinguishedbytheorderofthe AdjudicatingAuthorityapprovingthis ResolutionPlanandtheCorporate Debtor,SPVor theResolution Applicantsshall at nopointof timebe, directlyorindirectly,held responsibleor liable in relationthereto.
2.8^(1Y)	Anystampdutyliabilitiesor taxliability arisingpursuanttotheffansactions contemplatedunderthisResolution Planshal1beexemptedorwaivedoff. Thisshallnotbeconsffuedas conditionalitytotheimplementationof this ResolutionPlan.	Asper the applicable provisionof relevant laws
2.8 (v)	Giventhat theResolutionApplicants willacquirecontrol ofthe affairsofthe CorporateDebtorontheEffectiveDate, allGovernmentandStatutory Authorities (astheyareOperational Creditors)shallwaiveanyfinancial penalties,orarlyotherfinancial liabilitiesandduesthat mayarisefrom anydefaultsornon-compliancesbythe CorporateDebtorprior tothe Effective DateofApplicableLaws,includingbut notlimitedtotheprovisionsofthe CompaniesAct,allrelevantand applicabledirect and indirecttaxlaws, therelevant stampactsofthedifferent Statesof India,relevant Environmental LawsandarLyothergovernment instrumentaliW.	Thisisforthe appropriate authorities to consider
2.72.2	Anyandallclaimsordemandsin connectionwithor against theCompany and all liabilitiesorobligationsofthe Companv^(includineanvdemand for	Thisisforthe appropriate

¶366

¶367

Page 49 of61

¶368

IN THE NATIONAL COMPANY LAW TRIBUNAL CUT'|ACK BENCH

¶369

MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No. 1664/MB120111} In re: Resolution plan of CfuEST STEEL AND POWER PVT, LTD

¶370

Clause	Dispensation	Orders thereon
	anylossesordamagesorinconnection withamythtrdpartyclaimsorany investigationsbyany Goyemmentand StatutoryAgencies)bothpresentand future(accruinginrelationtoanyevent thathasoccured priortotheInsolvency CommencementDate)byortoany otherStakeholder(whoisentitledto receive any amounts under Section53of theIBCincludingthoseunderSection 53(1X0oftheIBC) oranyotheractual or potential creditor, anycounter-par$, any subsidiary,^jointventure orassociate companyorrelatedpartyofthe Companyorashareholderofthe Companyortheholderofanyother securitiesoftheCompanypriortothe InsolvencyCommencementDate, whether underlaw,equityorconffact, whether claimedorunclaimed, admitted ornot,dueor contingent,crystallisedor uncrystallised,knownorunknown, securedorunsecured,disputedor undisputed, presentorfuture,whether ornotsetoutintheInformation Memorandum,thebalancesheetsof the Company ortheprofitand loss account statementsoftheCompanyor theListof Creditors,and all inquiries, investigations orproceedingsinrelation totheforegoing, whethercivilor criminalinrelationtoanyperiodprior totheInsolvencyCommencementDate, willbewrittenoffinful1andwillbe deemedtobepermanently extinguished witheffectfrom theEffective Date by virtueoftheorderofthe Adjudicating AuthorityapprovingthisResolution Planandalltheinvestigations, inquiries orshow-cause,whethercivilorcriminal inrelationtotheforegoingshallbe disposed-offandtheCompanyorthe ResolutionApplicantsshall atno^point	authorities to consider

¶371

Page 50 of6l

¶372

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶373

MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.1664/MB/20171} In re: Resolution plan of CREST STEEL AND^{POWER PVT, LTD}

¶374

Clause	Dispensation	Orders thereon
	oftime be, directlyorindirectly,held responsibleorliableinrelationthereto. Forthe ayoidance of doubt, thecriminal proceedingswill beabatedsubjectto ApplicableLaw.Further,forthe avoidanceofdoubt andwithout prejudicetothegeneralityofthe foregoing,itisexpresslyclarifiedthatno liabilities,claimsorobligations whatsoever arisingoutof orinrelation tocriminalproceedings,shallarisein respectoftheCorporateDebtororthe ResolutionApplicantswhoshallatno pointoftime, directlyorindirectly,have anyobligation,liabilityordutyin relationthereto.Ifanycriminal proceedingsinitiatedagainst the officers oftheCorporateDebtorpriortothe Effective Datecannot be disposed ofby theAdjudicatingAuthorityunder Applicable Law,thesameshallcontinue againstsuchofficers.However,any liabilityaccruingtotheCorporate Debtor orthe ResolutionApplicantsas aresultofsuchcriminalproceedings againsttheofficersoftheCorporate Debtorshallbedeemedtohavebeen permanently extinguishedby theorder oftheAdjudicatingAuthorityapproving this ResolutionPlan.
2.72.4	UponapprovalofthisResolution Plan byAdjudicatingAuthority,therightsof any person (whether exercisablenowor inthefuture),either directlyor indirectly, and whethercontingentor not, to call forthe allotment,issue,sale or ffansferofsharesofthe Company or whether throughanyexchangeor otherwise,shallstand unconditionally andirrevocablyextinguished.A11 employeestock optionsandsweat equityshares,whethergtanted,vested or otherwise. shallstandirrevocablyand	Asper the applicable provisionof relevant laws

¶375

Page 51 of61

¶376

IN THE NATIONAL COMPANY LAW TRIBUNAL CUT-TACK BENCH

¶377

MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.1664/MB120171} In re: Resolurion plan of CREST STEEL AND POWER PVT, LTD

¶378

Clause	Dispensation	Orders thereon
	unconditionallycancelledand extinguishedwithoutfurtherdeedor actionandfornoconsideration.
2.13.7	(i)SubjecttoSection2.l5,theCompany shallhavenoLiabilitiestowardsthe personscurrentlyclassifiedasPromoter orPromoterGroup(includingthe existingPromotersoftheCompany), personsactinginconcertwith Promoters,holdingcompanies, subsidiarycompanies,associate companies,groupcompanies and/or theirrespectiveAffiliates/associates). However,itisclarifiedthat allclaimsof theCompany againstsuchRelated Parties(andallLiabilitiesofsuch Related Parties towardstheCompany) shallremainoutstanding,dueand payableinaccordancewiththeirterms. (ii)Itisfurtherclarifiedthatrelatedparfy arrangementsandagteementsofthe CompanywithitsRelated Partiesshall besubjecttorenegotiationofterms (at thesoleandabsolutediscretionofthe Resolution Applicants) andfurtherthat theCompanyshallhavetherightto terminatesuch agreements(withoutany costtotheCompany) andwithout givinganynotice,atitssoleandabsolute discretion. (iii) AnyLiabilities,claims,demands, capitalconffibutionsorany other form offinancial commitment, including but notlimitedtopledgeofsharesorany securityinterest createdorprovided, whetherguaranteedorconffactually agreedinwritingorotherwisebythe Companyonbehalfoforforits subsidiarycompanies,associate companies,GroupCompaniesand/or theirrespectiveAffiliates,shareholders/	Asper the applicable provisionof relevant laws

¶379

Page 52 of61

¶380

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶381

MA No. l25lc1'812020 In TP No. 205lCTBl20l9 fearlier^{CP (lB) No.1664/MB/20171} In re: Resolution plan of CREST STEEL AND POWER PVT, LTD

¶382

Clause	Dispensation	Orders thereon
	associates,asthecasemaybe(including but notlimitedtothe^gtJararltee extendedtosecuretheobligationsof TopworthUrjaandMetalsLimited, TopworthTollwaySatnaPrivate Limited, TopworthTollways MangawanPrivateLimitedand Topworth TollwaysUjjainPrivate Limited), whichareinexistencepriorto theClosingDateandwhich maybe invokedprior totheClosingDateorat anytimethereafter,shal1stand irrevocablyandunconditionallywaived andextinguishedasontheClosing Date.
2.13.e(i)	Theamounttobepaidtothe Operational Creditorsunderthis ResolutionPlanshallin inthe manner specifiedinSection3.9ofPart A (BusinessPlan)oftheResolutionPlan. AnyotherLiabniryshall bedeemedto be owed anddue asoftheInsolvency CommencementDate,whichis assumedtobe includedinthe Upfront Paymentsandwillbedeterminedbythe COCinthemannerspecifiedinSection 3.9ofPartA(BusinessPlan)ofthe ResolutionPlan.A11suchLiabilities shal1 immediately,irrevocablyand unconditionallystandfullyand finally dischargedandsettledwiththerebeing nofurtherclaimswhatsoever,andall formsofsecuritycreatedorsufferedto exist, or rightsto^qeatesuchasecurity, tosecureanyobligations towardsthe Operational Creditors (whetherby way ofguarantee,bankguarantee,lettersof creditorotherwise)shallimmediately, irrevocablyand unconditionallystand releasedanddischarged,andthe OperationalCreditorsshall waiveall rightstoinvokeorenforcethesame.In accordancewiththeforegoing,all	Allowed

¶383

Page 53 of61

¶384

IN THE NATIONAL COMPANY LAW TRIBUNAL CUT'IACK BENCH

¶385

MA No. 125lCTBl2020 In TP No. 205lcTBl2jlg learlier^{CP (lB) No.1664/MB120171} In re: Resolution plan of CREST STEEL AND POWER PVT, LTD

¶386

Clause	Dispensation	Orders thereon
	claims(whetherfinalorcontingent, whetherdisputedorundisputed,and whetherornotnotifledtoorclaimed againsttheCompany)ofall Government andStatutoryAuthorities (includinginrelationtoTaxes andall otherduesandstatutorypayments to anyGovernmentandStatutory Authority),relating totheperiodprior to the Effective Date, shallstandfullyand finallydischarged andsettled.
2.r3.e(ii)	Anyandall legalproceedings(including anynotice, showcause, adjudication proceedings,assessmentproceedings, regulatory orders,etc. initiatedbefore anyforumbyoronbehalfofany OperationalCreditortoenforceany rightsorclaimsagainsttheCompany shal1 immediately,irrevocablyand unconditionallystandwithdrawn, abated, settledand/orextinguished, and theOperational Creditorssha1ltakeall necessarystepstoensurethesame. SubjecttoSection2.15,exceptforthe OtherOperational CreditorPayments, theOperational Creditorsofthe Companyshallhaveno further rights or claimsagainsttheCompany(including but notlimitedto, in relation toany past breachesbytheCompany),inrespectof theperiodpriorto theClosingDate,and allsuchclaimsshallimmediately, irrevocablyand unconditionallystand extineuished.	Asper the applicable provisionof relevant laws
2.13.e(jit)	SubjecttoSection2.15, all claimsthat maybemade againstthe Companyin relationtoanypaymentsrequiredtobe madebytheCompany underApplicable Law,orinrelationtoarrybreach, contraventionornon-complianceof any ApplicableLaw foraperiodpriortothe Closing Date (whetherornotsuchclaim wasnotifiedto orclaimedasainstthe	Asper the applicable provisionof relevant laws

¶387

Page 54 of61

¶388

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶389

MA No. l25lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (IB) No.1664/MB/20171} In re; Resolution plan of CREST STEEL AND POV|/ER PVT. LTD

¶390

Clause	Dispensation	Orders thereon
	Company atsuchtime,andwhether or notsuchGovernmentarLdStatutory Authoritywasawareofsuchclaimat suchtime),shall be deemedtobeowed anddueas of theInsolvency CommencementDate, andshall immediately,irrevocablyand unconditionallystandabated,settled and extinguished.NoGovernmentand StatutoryAuthorityshal1haveany further rightsorclaimsagainstthe Company,inrespectoftheperiodprior tothe ClosingDateand/orinrespect ofthe amountswriffenoff.
2.13.e(iv)	SubjecttoSection2.L5,all outstanding obligationsofthe Company towardsits employeesand workmen,asofthe ClosingDate,shallimmediately, irrevocablyand unconditionallystand fullyandfinallydischargedandsettled ason theClosingDate.Theemployees andworkmenoftheCompanyshall havenofurther rightsorclaimsagainst theCompany,inrespectoftheperiod priortotheClosins,Date.	Asper the applrcable provisionof relevant laws
2.t3.e(v)	A11legalproceedingsinitiatedbefore anyforumbyoronbehalfofany employeesor workmen,toenforce any rightsorclaimsagainsttheCompany priortotheClosingDateshal1 immediately,irrevocablyand unconditionallystand abated, withdrawn,settled and/orextinguished and theemployees/ workmenshall take allnecessarystepstoensurethesame.	Asper the applicable provisionof relevant laws
2.13.9(viii)	The Companyshallnotbeliable forany non-compliance, defattlt, breach,etc., duringtheperiodpriortotheClosing Date,inrelationto:(i)any contractual arrangementsoftheCompany with counter-parties,includingGovernment andStatutoryAuthorities;and(i1) failuretotakeorobtainanvapprovals,	Asperthe applicable provisionof relevant laws.

¶391

Page 55 of6l

¶392

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶393

MA No. 125/CTB|2020 In TP No. 205|CTB/2019 fearlier^{CP (IB) No.l664iMBl2017]} In re: Resolution plan of CREST STEEL AND POWER PVT. LTD

¶394

Clause	Dispensation	Orders thereon
	consentsorpermits relatingtouseof landforpremisesforindustrial purposes.
2.13.9(tx)	Therelevant GovernmentandStatutory Authorityinrelationto Taxshallwaive anyTax orinterest and shallnotinitiate any penalproceedingsincaseofnon- fulfilmentofanyobligationsofthe Companyinrelationtowhichbenefit has beenclaimedbytheCompanyprior totheEffectiveDate,includingin relationtonon-fulfilmentofexport obligationinrespectofcustoms incentive includingbut notlimitedto imports underEPCGlicenses,non- submissionofformsforconcessional dufyrates,nonfulfilment ofconditions relatinsto srant ofstateincentivesetc.	Thisisforthe approprLate authoritiesto consider.
2.t3.12	, SubjecttoSection2.15,allpre-emptive rights,ffansferresffictions,share retentionobligations or otherlimitations orrestrictions applicabletothe Companyinrespectof itssubsidiaries, jointventurecompaniesandassociate companiesshall immediately, irrevocablyand unconditionallystand extinguished andwaivedandtothat extent, theprovisions of this Resolution Planshallbebindingon thesubsidiaries, jointventurecompanies,associate companiesoftheCompanyandtheir respective shareholders, andnoconsent orapprovalsshallberequiredforthe implementationofthis Resolution Plan fromanyoftheforegoing persons,and, and theCompanyshall havenoLiability toanv^personinthis resard.	Asper the applicable provisionof relevant laws
2.t3.73	PendingtheoccurrenceoftheClosing Date,noFinancial Creditorshallbe entitledtotake,initiateor continueany stepsorproceedingsagainstthe Companyor itsassets(whetherby way ofdemand.leeal^proceedinss.	Asper the applicable provisionof relevant laws

¶395

nr >q

¶396

Page 56 of61

¶397

iN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶398

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No,I664lMB/20171} In re: Resolntion plan o/'CREST STEEL AND POWER PVT, LTD

¶399

Clause	Dispensation	Orders thereon
	alternativedeterminationprocess (includingarbrtrationoranexpert determinationprocess),the levyingof disffess, executionof^judgmentor otherwise)in any^jurisdiction whatsoeverforthe purposeofobtaining paymentofanyLiability,orforthe purposeofplacingtheCompany into liquidationor arlyanalogous proceedings.Thisiswithoutprejudiceto therightoftheFinancialCreditorsto initiateanystepsorproceedings against theCompanyincaseoffailureto implementtheResolutionPlan.
2.L3.74	PendingtheoccurrenceoftheClosing Date,noOperationalCreditorshallbe entitledtotake,initiateor continueany stepsorproceedingsagainstthe Companyor itsassets(whetherby way ofdemand,legalproceedings, altemativedeterminationprocess (includingarbitrationoranexpert determinationprocess),the levyingof disffess, executionof^judgmentor otherwise)in any^jurisdiction whatsoeverforthe purposeof obtaining paymentofanyLiability,orforthe purposeofplacingtheCompany into liquidationorarLyanalogous proceedings.Thisiswithoutprejudiceto therightof the Operational Creditors to initiateanystepsorproceedings against theCompanyincaseoffailureto implementtheResolutionPlan.	Asper the applicable provisionof relevant laws
8.1	Under ApplicableLawand as directed bytheAdjudicatingAuthority,the implementationoftheResolution Plan mayrequire approvalfromvarious authorities.TheMonitoringAgency, shal1fileapplicationswithvarious authoritiesasrequiredfor implementationofthe ResolutionPlan,	This wil1benot justas agreed withthe Resolution applicants,but alsoasrequired under the statute.The

¶400

Page 57 of6l

¶401

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶402

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (IB)No.1664lMBl20l1l} In re: Resolution plan of CREST STEEL AND POY|/ER PVT. LTD

¶403

Clause	Dispensation	Orders thereon
	inaformandmannetagreedwiththe Resolution Applicants.	corporate debtor under the successful resolution applicant or the monitoring agency,asthe casemaybe, shallensurethat applicationsas prescribed under the statutefor grantofthe requisite approvals,is made along withthe prescribedfiling fee,ifany,to theappropriate authorities, withinthetime specified under section 31(4)of theIBC.
8.2	TheResolutionApplicantsshallbe grantedlibertyto-(i)recast/ resubmit thefinancialstatementsand accountsof theCompanyforthefinancialyears 20L7-18 and2018-19;and(ii)fiIe revised incometaxreturnsofthe Companyfor the financialyears 2017-18and2018-79 totherelevantGovemmentand StatutoryAuthorities.	Thisisforthe appropriate authorities to consider

¶404

The final list of admiued claims from creditors has been submitted and marked as Annexure H.

¶405

Page 58 of6I

¶406

IN THE NATIONAL COMPANY LAW TRIBUNAL CUT'|ACK BENCH

¶407

MA No. 125lCTBl2020 In TP No. 205lCTBl2019 learlier^{CP (lB) No.1664lMB120111} In re: Resolution plan of CREST STEEL AND POWER PVT, LTD

¶408

True copy of the duly accepted and acknowledged Letter of Intent and the Performance Security shared by the Successful Resolution Applicant are annexed as Annexure Q.

¶409

The RP declaredthat Resolution Plan met all the Statutory requirements as required in IBC 20t6 and the applicable Rules framed by IBBI. RP also reported that the Plan was evallated, examined and vetted by himself and was placed before the CoC for its consideration along with his report. A compliance certificate in Form H issued by the Resolution Professional has been submitted and marked as Annexure R.

¶410

On perusal of the documents on record, we are satisfied that the Resolution Plan is in accotdance with sections 30 and 31 of the IBC and also complies with regulations 38 and 39 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations,20t6. No circumstances exist that militate against grarLt of approval for the Resolution Plan.

¶411

The Resolution Plan placed on record in respect of the corporate applicant, is hereby approved. The same shall be binding on the respective corporate applicant, its members, creditors, guarantors, employees and other stakeholders, as also the Resolution Applicants.

¶412

As far as the question of granting time to comply with the statutory obligations or seeking sanctions from govemmental authorities is concerned, the Resolution Applicant is directed to do the same within one year as prescribed under section 31(4) of the Code.

¶413

Therefore, subject to the observations made in this Order, we hereby accord our approval to the Resolution Plan. The approved Resolution Plan shall form part of this Order.

¶414

The order of moratorium which has come into effect from22.04.2019by virtue of the orders of admission passed on that date by the Adjudicating

¶415

Page 59 of61

¶416

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCI]

¶417

MA No. l25lCTBl2020 In TP No. 205lCTBl20l9 learlier^{CP (lB) No.1664/MB12011)} In re: Resolution plan of CREST STEEL AND POWER PVT, LI'D

¶418

Authority under section L4 of the IBC shall cease to have effect from the date of passing of this Order.

¶419

In case of non-compliance of this order, the CoC shall forfeit *re EMD amount aheady paid by the Resolution Applicant, in addition to any other action as may be required to be taken under the law. The Successful Resolution Applicant shall also not be entitled to withdraw from the appr ov ed Res olution Plan.

¶420

The Resolution Professional shall forward all records relating to the conduct of the CIRP and the Resolution Plans to the IBBI as mandated by the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulati ons, 20L6.

¶421

The RP shall stand discharged from his duties with effect from the date of this Order. He shall, however, perform his duties in terms of the Resolution Plan as approvedby this Adjudicating Authority.

¶422

The Resolution Applicant shall have access to all the Corporate Debtor's records, documents, assets and premises with effect from the date of this Order, to finalize the further line of action required for starting the business operations of the Corporate Debtor.

¶423

Liberty is hereby grantedfor moving applications, ifrequired, in connection with implementation of this Resolution Plan.

¶424

A copy of this Order be sent by the Registry to the Registrar of Companies, Raipur, chhattisgarh, inter alia for updating the status of the corporate Debtor.

¶425

The Application being MA No,125/crB/2020 along with the main Company Petition in TP No.205lCTB/2019 [earlier, CP (IB) No.1664/ MB / 20L71 are disposed of accordingly.

¶426

Page 60 of6I

¶427

IN THE NATIONAL COMPANY LAW^TRIBUNAL CUTTACK BENCH

¶428

MA No. l25lCTBl2020 In TP No. 205lcTBl2jlg learlier^{CP (lB) No.l664lMBl20l1l} In re: Resctlution plan of CREST STEEL AND POWER PVT, LTD

¶429

The Registry is directed to send e-mail copies of the order forthwith to al1 the parties and their Ld. Counsel for information and for taking necessary steps. The parties shall l:Je a copy of this order with the Registrar of Companies, Chhattisgarh, Raipur.

¶430

7 5. Certified Copy of this order may be issued, if applied for, upon compliance of all requisite formalities.

¶431

Ordered accordingly. File be consigned to the record.

¶432

Rajaseliftar V.K. Member (Judicial)

¶433

Signed this 1't day of November,202L

¶434

Ravijeet_P.S.

¶435

Page 61 of61

In the matter of Crest Steel and Power Pvt. Ltd. Ma No. 125-CTB-2020 ln Tp No. 205-CTB-2019 [earlier Cp (Ib) No.1664-MB-2017]

Case brief

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In the matter of Crest Steel and Power Pvt. Ltd. Ma No. 125-CTB-2020 ln Tp No. 205-CTB-2019 [earlier Cp (Ib) No.1664-MB-2017]

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