Allowed

In the matter of Jagannath Sponge Private Limited Ia No. 196-C'TB-2020 In Tp No.34-CTB-20l9 [earlier Cp (Ib) No. 1174-KB-20I8J

NCLT6 Aug 2021

Case brief

AI extract

What is this about?

The NCLT approved a resolution plan for Jagannath Sponge Private Limited submitted by Omkara Assets Reconstruction Private Limited. The plan received 100% support from the Committee of Creditors and met all statutory requirements under the IBC, resulting in the appointment of the resolution professional's discharge and the cessation of the moratorium.

What did the court decide?

Approval of the Resolution Plan; Moratorium ceased; Resolution Professional discharged; Plan binding on all stakeholders.

In the matter of Jagannath Sponge Private Limited Ia No… — Insolvency and Bankruptcy | NCLT (2021)

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IN TIIE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCTI CUT'TACI(

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IA No. 1961C'1812020

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TP No.34lCTBl20l9 [earlier^{CP (IB) No.I I74/I{B/20I8J}

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In the Muller of':

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INSOT,VENCY AND BANKRUP'|CY CODB, 2076;

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In the Matter of:

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Section 10 of the Insolvency and Bankruptcy Code, 2016 read with rule 7 of the lnsolvency and Bankruptcy (Application to Adjudicating Authority) Rules,2016.

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and

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In the Malter oJ:

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An Application under Section 60(5) o1'lnsolvency and Rankruptcy Code, 2016 read witlr Rule I I of National Company Law'fribunal Rules, 2016;

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and

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In lhe Matter of:

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Ms. Jagannath Sponge Private Limited, a private company incorpolated under the Ccrnrpanies Act, 1956, having its registered office at Subhah Chowk Main I{oad,Raj gangpur, Orissa- l7 00ll ;

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... Corporate Debtor

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and

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SAMYA SIINGUPl'A an Insolvency Professional, IRBI Reg No. IBBI/IPA001/p0009812017-18/10198 having its ollice at'fodi Chamber, Room No, 204 &.205, 2"d Floor, 2 Lal Bazaar Street, Kolkata-700001;

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. ..Applicant/Resolution Professional

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Order reserved on: 28,07,2021 Order pronounced on: 06.08.2021

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IN ]].IE NAI'IONAI- COMPANY^{LAWTIIIBIJNAI,} CUTTACI( BENCII

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IA No. l96lc1-B.12020

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'fP No, 34lc'lBl2019 fEorlier^{C P (l B) No.l 17 4/KI)/201 8/}

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Corum:

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Shri Rajasekhar V.K. Member (Judicial) Shri Satya Ranian Prasad Member' (Technical)

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Ap p e ar anc es^(th ro ug h v ideo c o nfe r encin^g) For the Applicants Mr. Samya Sengupta, Resolution Professional

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ORDER

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Per Satya Ranjan Prasad, Member (Technical)

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1. Preliminary

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1.1. That an IA No. l96lCTBl2020 was moved on 02.09.2020 by Mr. Samya Sengupta, Resolution Professional of Jagannath Sponge Private I.imited (CIN: U27102OR2003PTC007127) under section 60(5) of the Insolvency and Bankruptcy Code ("Code" or "IBC") read with Rule 11 of NCLT Rules praying for urgent listing of matter for approval of Resolution Plan in respect to .Iagannath Sponge Private Limited under section 31(1) of the Code.

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10 'Ihe trnderlined CP (IB) No.l174lKBl2018 was filed by Jagannath Sponge Private Limited, the corporate debtor under section 10 of the Code, which was admitted and corporate insolvency resolution process was also initiated vide order dated 22.04.2019 in CP (IB) No. 11741KP/2018.

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1.3. That initially Mr. Samya Sengupta (IBBI Reg. No: IBBI/IPA001/P0009812017-18/10198) was appointed as Interim Resolution Professional. His appointment as Resolution Professional of the Corporate

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IN TI-IE NATIONAL COMPANY LAW ]'RIBIJNAI, CUTTACI( BI,]NCFI

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IA No. 1961C'f812020

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TP No. 34lCTBl20t9 lEarlier^{CP (tB)No.l174/KB/201 8l}

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Debtor was approved by CoC in its 3'd CoC Meeting^{held on23.07.2019} and was also confirmed by this Tribunal vide order dated^23.07.2019.

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L.4. The RP has made public announcement on^{24.04.2019 in Form-A} regarding initiation of CIRP and called^proof of claims^fromthe Stakeholders of the company in specified forms tiII06.05.2019^{in Business} Standard, and Odisha Bahskar both in Bhubaneswar edition.

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2. Collation of Claims

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2.1. The claims existing as on the date of the hearing are^as follows:

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S. N.	Category of Claim	Amountadmitted asper Information Memorandum (rNR)	Amount proposed to bepaidas perthe Resolution Plan0NR)
I	CIRPCost		30,00,000/-
2	FinancialCreditors-SBI	91,43,04,813.191-	8,75,00,000/-
aJ	Operational Creditors
4	Operational Creditors (Govt.Dues)
5	Workmenand
	Employees
	Total	91,43,04,813.191-	9,05,00,000/-

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3. CIRP Processes and Compliances

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3.1.^{The applicant statesthata total of 13 CoCMeetings have been held} during CIRP period as follows:

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Particulars	Date ofCoCmeeting
1'tCoCMeeting	t4.05.2019
2ndCoCMeeting	24.06.2019

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IN'fTIE NATIONAT, COMPANY^{t,AW TRIBIJNAL} CU'IIACK BI]NCI{

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IA No. l96lC'I'812020

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TP No, 34lCTBl20l9 lEarlier^{CP (lB) No.l174/KB/20lBl}

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Particulars	Dateof CoCmeeting
3'dCoCMeeting	23.07.20t9
4thCoCMeeting	11.10.2019
5thCoCMeeting	1s.11.2019
6tl'CoC Meeting	2t.tt.2019
7tl'CoC Meeting	16.12,2019
8tl'CoC Meeting	20.01,2020
9tl'CoC Meeting	03.02.2020
i0tr'CoCMeeting	14.02,2020
11il'CoC Meeting	t2.03.2020
12tr'CoCMeeting	23.03.2020
13tr'CoCMeeting	t3.07.2421

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5.2.^{The Applicantsubmits that CoC was informed about the Fair Market Value} and Liquidation Value of the Corporate Debtor as per the Valuation Report which are as follows:

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Details of Fair Market Value and Liquidation Value

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Classof Assets	Nameof Valuer	FairMarket Value ONR)	Liquidation Value(INR)
	Mr. Puneet Tvasi	7,92,35,824.00	5,54,65,200.00
Landand Building	Mr. Sekh Tarik Anowar	7,98,55,000.00	5,58,98,500.00
	Total(A)	15,90,90,824.00	11,13,63,700.00
	Mr. Asim Maity	1,42,24,459.00	99,57 ,1.27.00
Plantand Machinery	Mr.Debasish Ghosh	r,36,90,314.00	95,83,220.00
	Total(B)	2,79,14,773.00	1,95,40,341.00
	Mr. Das Debashis	26,28,763.00	3,85,975.00

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^^'' 7__-

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]N THE NATIONAI- COMPANY^{I-AW TRIBUNAL} CI.J'|]'ACK BI]NCH

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IA No. l96lc1'812020

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I'P No. 34lCTB|2\19 lEarlier^{CP (lB) No.l t 74/KB/2018J}

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Securities	Mr.Vikash	43,77,769.00	12,16,958.00
and	Goel
Financials	TotalI	70,06,532.00	16,02,933.00
Total	(A+B+C)	19,40,12,129,00	13,25,06,974,00
Avera	geValue	9,70,06,064.50	6,62,53,487.00

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3.3.^{The Applicanthas submittedall together10 progressrepoftsincludingthe} final progress repofts as follows:

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S.N.	Particulars	Date of Submission
1	1'tProgressReport	t4.05.2019
2	2"dProgressReporl	24.06.20t9
3	3'dProgress Repoft	rs.07.2019
4	4thProgressReport	23.07.2019
5	5thProgressReport	1,7.10.20t9
6	6tl'Progress Report	19.12.2019
7	7thProgressReport	23.0r,2020
8	8thProgressReport	t7.02.2020I t8.02.2020
9	9thProgressReport	16.03.2020
10	FinalProgressReport(including amendedreport)	02.04.2020 27.04.2020 (Conected) 10.08.2020 (Amended)

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3.4.^{The ResolutionProfessionalhad issuedinvitations for Expressionof} Interest (EoI) from potential Resolution Applicants on 26.07.2019, 14.08.2019 and 15.12.2019 wherein the last day for submission of Resolution Plan was 26,08.20 19, 13,09.2019 and 1 4.01 .2020 respectively. For submission of Resolution Plan for the Corporate Debtor, in terns of the provision of section 25(2)(h) of the Code read with Regulation 36A of

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3A-^---' \

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IN TFIE NATIONAI, COMPANY LAW ]'RIBIJNAI, C[JT'I'AC]K I]ENCI-I

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IA No. l96lCTBl2,020 in

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TP No. 34lCTB|2019 fEarlier^{CP (tB) No.1l74/KB/20181}

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the IBBI (Resolution Process for Corporate^{Persons)Regulations, 2016.} T'he notice was also published on the website of the IBBI.

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S.S.^{The CIRP period was extendedfrom timeto time with approvalof the} Adjudicating Authority, as fbllows, through:

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a) CA No. l23|CTB|ZO19 CIRP period was extended by a^period of 90 days beyond 180 days from l^gtl' October ,2019 vide order dated 17.10.2019;

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b) IA No, 29lCTBl2020 CIRP period was extended by a^period of³⁰ days beyond 270 days from 17tl' January,2020 vide order dated 23.01.2020;

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c) IA No. 59lCTBl2020 CIRP period was extended by a^period of 30 days beyond 300 days from 16tl'February,2020, vide order dated 18.02.2020;

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d) iA No. 89lCTBl2020 CIRP period was extended by a period of 15 days beyond 330 days from l6tl' March,2020, vide order dated 16.03.2020.

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3.6.^{The Applicantsubmitsthat he has receivedtwo ResolutionPlans for the} Corporate Debtor within the due date namely from Jagadamba Joint Venture and Omkara Assets Reconstruction Private Limited^(Omkara ARC).

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4, Evaluation and Voting

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4.r.^{On2t.l1,.2019,theCoC at its 6th meeting,consideredboth the plans. After} deliberations on both the plans, they were put up for open bidding.^'fhe bid was held in three rounds wherein both the prospective applicants have

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IN ]'IIE NATIONAI, COMPANY^{I,AW TRIBUNAL} CUI"TACI( I]ENCH

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IA No. l96lC'TB/2020

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T'P No. 34lCTB|2019 fEarlier^{CP (lB) No.l 174/KB/20lBJ}

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raised their respective bid values. Omkara ARC was^{declared the Hl} bidder having proposed Rs. 9.05 cores at the^{last round in the bidding.}

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4.2.^{Followedby the bidding process the CoC has sought variousclarifications} and also negotiated for various terms of Resolution^{Plan with the} prospective applicant and after that Omkara ARC submitted the^revised Resolution Plan on 13.02.2020. At the^72th CoC^{meeting heldon} 23.03.2020 the CoC has approved the Resolution^{Plan with 100%votein} favour of Agenda No.4.

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Submission of approved Resolution Plan to Adjudicating Authorify

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5.r.. The Applicant has subrnitted the final Progress Report on02.04.2020,^due to outbreak of Covid-19 Pandemic the scheduled hearing could^{not be held} on 02.04.2020. Thereafter the Applicant has filed the corrected^final progress report on27.04.2020 and the amended final progress report along with surnmary of Resolution Plan, Resoh-rtion Plan and Form-H^{before the} registry on 10.08.2020 via email and the hard copy of the^samewas submitted on 12.08.2020.

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5.2.^{The main CP was not listedfor hearing for very long time since} 16.03.2020. The applicant has filed the urgency application through IA No. l96lCTBl2020 on 02.09.2020 before this bench stating the urgency and praying for approval of Resolution Plan.

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S.g.^{Thereafter the matter was listed and adjudicated and wasset for reserved} for order during the hearing dated 18.01,2021. However, the order could not be pronounced. In view of the reconstitution of the Bench,^{the matter} is then put back on Board for de novo hearingⁱⁿ terms^{of Rule 152 (4) of} NCLT Rules.

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IN^'fHE NATIONAL COMPANY^{LAW TRIBIJNAI,} CI.JTTACI( BENCH

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IA No. 1961C'1B.12020

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l'P No, 34lCTBl20l9 lEarlier^{CP (lB) No.l174/KB/20181}

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Salient features of the approved Resolution Plan

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6.t. The Resolution Applicant, Omkara Assets Reconstruction^{PrivateLimited} had provided for payment of CIRP cost and other stakeholders of^the Corporate Debtor as per the^provision of the^Code.

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6.2. The Applicant has also^placed the relevant^{extracts of the valuation reports} on record. A charl disclosing the average liquidation value^{has also been} placed on record. The amount being paid through the Resolution Plan^is higher than the average liquidation value.

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7, Compliance of the successful Resolution Plan with various^provisions

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7.L.^{The Applicant has submitted the details of various compliancesas} envisaged by the Code and the CIRP Regulations which a Resolution Plan is required to adhere to, as follows:

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L Submission of Resolution Plan in terms of section 30(2) of the Code

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Clauseof section30(2)	Requirement	Howdealtwithin thePlan
(a)	Planmust provideforpaymentof CIRPcostinpriorityto	Para 6.4(a) and6.5 olPart-A,pageNo.
	repaymentto furtherdebtsofCD inthemannerspecifiedbythe Board.	24and25ofthe ResolutionPlan.
(b)	Plan mustprovideforrepayment ofdebtsofOperationalCreditors insuchmannerasmaybe specifiedbytheBoardwhich shall notbelessthan-

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ut'/

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IN TT{E NATIONAL COMPANY I,AW^TRII]UNAL CTJTTACK BENCII

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IA No. 196lCTBl2020

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'l'P No. 34lCTBl2\lg lEarlier^{CP (lB) No.l174/KB/20lBl}

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Clauseof section30(2)	Requirement	Howdealtwithin the Plan
	(i)theamount payabletosuch creditorsintheevent of liquidationunder section53; OI	Para6.6, 6.7,6.8 and6.9ofParl-A, frompageNo.24 to 27oftheResolution Plan.
	(ii)theamountthat wouldhave beenpaidtosuchcreditors,if theamounttobedistributed under the resolutionplanhad beendistributedinaccordance withtheorderofpriorityin sub- section(1)ofsection53, whicheverishigher;and	Para6.6, 6.7,6.8 and6.9ofPart-A, frompageNo.24to 2loftheResolution Plan.
	(iii)providesforpaymentofdebts offinancialcreditorswhodo notvoteinfavourofthe resolutionplan,insuch mannerasmaybespecified by the Board.	Para6.10ofPart-A, pageNo.2land28 oftheResolution PIan.
(c)	Managementoftheaffairsofthe CorporateDebtor afterapproval ofthe ResolutionPlan.	Para8(8.1to8.6)of Part-A,pageNo.33 and34 ofthe ResolutionPlan.
(d)	Implementationand Supervision ofResolutionPlan.	Para2(2.1 to2.4)of Part-B,pageNo.41 and44 ofthe ResolutionPlan.
(e)	Plandoesnotcontraveneanyof the provisionsofthelaw forthe timebeinginforce.	Para1.1.1.(e)of Paft-B,pageNo"37 oftheResolution Plan.
(0	Confirmsto suchother requirementsasmay be specified bythe Board.	Para1.1.1(0of Part-B,pageNo.37 oftheResolution Plan.

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IN^'T'IIE NAI'IONAL COMPANY I-AW^TRIBTJNAL CLJTTACI( T]ENCI-I

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IA No. 196lCTBl2020

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irt

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TP No. 34tCTB|Tj19 lEarlier^{CP (lB) No.l 174/KB/20lBl}

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Clauseof section 30(2)	Requirement	Howdealtwithin thePlan
		Tobe readwith Para2ofPart-B, pageNo.41to53of theResolutionPlan.

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il, Measures required for implementation of the Resolution Plan in terms of Reeulation 37 of CIRP Reeulations:

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A resolution plan shall provide for the measures, as may be necessary, for insolvency resolution of the corporate debtor for maximization of value of its assets including but not limited to the following:^-

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Pa rti cu la rs	RelevantProvisionof theResolutionPlan dealingwithRegulation37
(a)transferof allorpartofthe assetsofthecorporate debtortooneormore persons;	Notproposedintheplan
(b)saleof allorpartofthe assetswhethersubject to anysecurity interestor not;	Notproposedintheplan
(ba)restructuringofthe corporate debtor,byway ofmerger, amalgamation anddemerger;	Notproposedintheplan
(c) thesubstantialacquisition ofsharesofthecorporate debtor,orthemergeror theconsolidationofthe	Para6.12of Part-A, fi'om^pageNo.29and30of theResolution Plan. Tobereadwithnotestopara 2and para3.2ofpage1land 18 andpara 8.5of page34ofPart-A

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IN ]'I_IE NATIONAT, COI\4PANY^{t,AW TRIT]UNAI,} CIJTTACK BENCT{

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IA No. 1961C1"B.1202.0

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TP No. 34lCTBl20l9

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fEarlier^{CP (lB)Nct. l 1 7 4/KB/20l Bl}

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coryoratedebtorwith oneor morepersons;
(ca)cancellationordelisting ofanysharesofthe corporate debtor,if applicable;	Notproposedintheplan
(d)satisfaction or modificationofany securityinterest;	Clause2,clause 7 andclause8ofPara2.5of Part-BofpageNo.44to48 andsttb-clausec Para3 ofclause 3ofpageNo.54.
(e)curingorwaivingofany breach o1'thetermsof any debtduefromthe corporate debtor;	Clausel,clause2andclause 5ofPara2.5of Part-BofpageNo.44to46
(1)reduction inthe amount payabletothe creditors;	Para2.5 ofPart-B,frompageNo.44to53ofthe Plan.
(g)extensionofamaturity dateora changein interestrateorother termsofadebtduefrom the corporate debtor;	Notproposedinthe plan
(h)amendmentofthe constitutionaldocuments ofthe corporate debtor;	Para8.5of Part-A,pageNo.34 andPara2.4of Part-B,pageNo.43and44ofthe Resolution Plan.
(i)issuanceofsecuritiesof the corporate debtor,for cash,property, securities, orin exchangeforclaimsor interests, or other appropriate pllrpose;	Notproposedintheplan

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Page ll of23

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IN TI.IE NATIONAL COMPANY t,AW^{I'RIBI.-]NAI-} CI.JTTACI( BENCH

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IA No. 1961C1'B.12020

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TP No. 34lCTBl2019 lEarlier^{CP (lB)No.l174/KB/20lBl}

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O^{changeinportfblioof} goodsorservices produced orrenderedby the corporate debtor;	Notproposedinthe plan
(k)changeintechnologyused bythecorporatedebtor; and	Notproposedintheplan
(1)obtainingnecessary approvalsfromthe	Para2.5 clause11ofPart-8,^pageNo.48ofthe ResolutionPlan.
Centraland State
Governmentsandother authorities

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IIL Mandatory contents of Resolution Plan in terms^{of Resulation38 of} CIRP Resulations:

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Reference to relevant Regulation	Requirement	Howdealtwithin the Plan
38(1)	(a)Theamount payabletothe operational creditors under aresolutionplanshallbe paidinpriorityover financialcreditor.	Para 1clause1.1.2 ofPart-B,pageNo. 38andPua6.7of Part-ApageNo.25 and26 ofthe ResolutionPlan.
	(b) Theamount payabletothe financialcreditors undera resolution plan, whohavea right tovote undersection 21(2)anddidnotvotein favouroftheresolution planshallbepaidin priorityoverfinancial creditorswhovotedin favour ofthePlan.	Para 1clause1.1.3 ofPart-B,pageNo. 38andPara6.10of Part-A,pageNo.27 and28 ofthe ResolutionPlan.

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IN TI-IE NATIONAL COMPANY LAW'IRIBUNAI, CUITACK BENCH

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lA No. l96lc1-B.12020

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TP No. 34lCTB|2j19 fEarlier^{CP (IB) No.l174/KB/20181}

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Reference to relevant Regulation	Requirement	Howdealtwithin thePlan
38(1A)	A,resolution plan shall include rstatementastohowithas lealtwiththeinterestsofall ;takeholders,including irnancial creditorsand rperationalcreditorsofthe ;orporatedebtor.	ParaIclause1.1.4 ofPart-B,pageNo. 38 andPara6.5,6.6, 6.7, 6.8and6.1Iof Part-A,pageNo.24 to 29 of the ResolutionPlan.
38(1B)	Aresolutionplanshall includeastatementgiving detailsoftheresolution applicantoranyofitsrelated partieshas failedto irnplementorcontributedto the failure of implernentationofanyother resolutionplanapprovedby theAdjudicatingAuthorityat anytimeinthe past.	Para 1clause1.1.5 ofPart-B,pageNo. 39oftheResolution Plan.
38(2)	Aresolutionplanshallprovide:
	(a)the termofthe plan and its implementationschedule;	Para 1clause1.1.6 and Para2ofPart- B,pageNo.39and 4lto53ofthe ResolutionPlan.
	(b)themanagementand controlofthebusinessof thecorporate debtorduring its terrn;and	Para1clause1.1.7 ofPart-B,pageNo. 39andPara8of Part-A,pageNo.33 and34 ofthe ResolutionPlan.
	I Adequatemeans supervising implementation for its	PwaIclause1.1.8 andPara2 ofParl- B,pageNo.39and 4l to53ofthe

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IN'I'HI] NA'fIONAI- COMPANY^{LAW ]-RIBUNAI-} CTJT'I"ACK BENCH

IA No. l96lc'f8t2020

TP No. 34lCTBl20t9

fEarlier^{CP (lB) No.l 174/KB/20181}

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Reference to relevant Regulation	Requirement	Howdealtwithin thePlan
		ResolutionPlan.
38(3)	Aresolutionplan shall demonstr	ate that-
	(a)itaddressesthecauseof default;	Para1clause1.1.9 ofPart-B,page No. 40ofthe Resolution Plan.
	(b)itis feasibleandviable;	Para 1clause1.1.9 ofPart-B,pageNo. 40ofthe Resolution Plan.
	(c)ithas provisionsforits effective implementation;	Para 1clause1.1.9 ofPart-B,pageNo. 40oftheResolution Plan.
	(d) ithasprovisionsfor approvalsrequiredandthe timeline forthesame; and	Para1clause1.1.9 ofParl-B,page No. 40ofthe Resolution Plan.
	(e)theResolution Applicant hasthecapabilityto implementtheresolution plan.	Para1clause1.1.9 ofPart-B,page No. 40oftheResolution Plan.

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7.2.^{The Applicant submitsthat the successfulresolution applicant has} submitted a certificate of eligibility under section 29A of the Code, as required by regulation 39(1Xa) of the CIRP Regulations. An underlaking has also been submitted by the successful Resolution Applicant, as mandated in terms of regulation 39(1)(c) of the CIRP Regulations.

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7.3.^{The Applicant has filed a Compliance Cerlificate in prescribedForm'H'} in compliance with regulation 39(4) of the CIRP Regulations.l9 Evidence

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IN THE NATIONAL COMPANY LAW ]'RIBI.JNAT, CIJTTACI( BENCTI

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IA No. 196lCTBl2020 ilt

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TP No, 34lCTBl2019 lEarlier^{CP (lB) No.l174/KB/20lBJ}

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of receipt of perfbrmance security as required under^{regulation 368(4A)is} placed on record.

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8. Details of Resolution Plan/Payment Schedule

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B.r. The relevant information with regard to the amount claimed, amollnt admitted, and .he amount proposed to be paid by the Resolution Applicant i.e., Omkara Assets Reconstruction Private l,imited, under the said resolution plan is tabulated as under:

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sl. No	Creditor	AmountClaimed (rNR) Financi	Amount Admitted (rNR) al Creditors	,/. share in COC	Amount proposedin Resolution PIanflNR)
1	FinancialCreditor- Secured	91,43,04,813.19t	91,43,04,813.191-	100%	8,75,00,000,
2	linancialCreditors. Jnsecured
	TOTAL:	97,43,04,813.191-	91,43,04,813.191-	100%	8,75,00,000/-
		Operati	onal Creditors
I	Workmenanc Employees
2.	Otheroperationa creditors
aJ	Govemmentsdues
4	Other Creditors (Shareholder& RelatedPartl advances)
	TOTAL
		CIRPCl	ost
1	CIRPCost approvedtill CoC meetine) (Ar 134	22,37,3031-	22,37,303/-		10,00,000/-

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IN TIIE NA'|IONAL COMPANY I-AW ]'RIBUNAT, CUTTACJK BI]NCI.I

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IA No. l96lc'1B.12020

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'IP No, 34lCTBl2019 lEarlier^{CP (lB) No.l174/KB/20lBl}

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B.z. The total plan size is approximately Rs. 9.55 crores inclusive of the Capital Expenditure of Rs. 30 lakhs and Working Capital of Rs. 20 lakhs for development of the assets and operation of the Corporate Debtor,^as tabulated hereunder:

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SlNo	Typeofdebts	Amountproposed (rNR)
1	EstimatedCIRPCost	30,00,000/-
2.	SecuredFinancialCreditors	8,75,00,000/-
a	WorkmenandEmployees	0
4,	UnsecuredFinancialCreditors	0
5.	Others UnsecuredFinancialCreditors (RelatedParties)	0
6.	Operational Creditors (other than statutory)	0
7	StatutoryLiabilities	0
8.	Shareholders	0
9.	ContingenttoMiningDepartment	0
10.	Contingent/ Unforeseen Cost	0
	Totalpayment to creditors	9,05,00,000/-
ll	Capital expenditureandworkingcapitalfor developmentoftheassetsandoperations ofthe corporate debtor	50,00,000/-

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Page 16 of23

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IN^"fIIF] NA'I'IONAL COMPANY^{LAW TRIBIJNAI-} CUTTACK BI]NC}.I

¶180

IA No. t96lCTBl2020

¶181

¶182

TP No, 34lCTBl20l9 fEarlier^{CP (lB) No.I 174/KB/2018]}

¶183

SlNo	Typeofdebts	Amountproposed
		(INR)
12.	Additionalsumforpaymentto workmen/	0
	employees
	TotalPlanOutlay	9,55,00,000/-

¶184

B.S. Summary of the financial^{proposal/ paymentsunder the ResolutionPlan} dated 13,02.2020 of Omkara Assets Reconstruction^{Private Limitedis} tabr.rlated hereunder:

¶185

Particulars	Amount
Admissible Debt tobe paidupfi'ont totheCIRI costs	Rs.30,00,000/-
AdrnissibleDebttobe paidupfronttothe Operational Creditors	Rs.0.00/-
PaymenttoFinancial Creditor,StateBankof lndia	Rs. 8,75,00,000/-

¶186

8.4. The resolution plan defines "Approval Date" as the date on which the Adjudicating Authority approves the resolution plan

¶187

Details on Management / Implementation and Relief as per the Resolution Plan- Salient Features

¶188

The Resolution Plan also provides for-

¶189

a. Management of Company after resolution in Part-A, Para S-page No. 33 and 34 of the Plan;

¶190

b. Term of the Resolution Plan as per Parl-B, Paru2.2,^page No.42 of the Plan;

¶191

c. Indicative timelines of events for implementation in Part-B, Para 2.2,

¶192

grA

¶193

PagelT of23

¶194

IN TFIE NATIONAL COMPANY LAW TRIBTJNAICTJTTACI( BENCII

¶195

IA No, 1961C'I'B,12020

¶196

¶197

TP No. 34lCTBl2019 l.Earlier^{CP (l B) No. I I 74/KB/20l8J}

¶198

page No.42 of the Plan; and

¶199

d. Implementation and Supervision of the resolution plan in Paru2. Page No. 41 to 53 of the Plan,

¶200

10. Waivers, Reliefs and Exemptions

¶201

1o.1. fhe reliefs and concessions sought by the Resolution Applicant from the Adjudicating Authority are set out below for the successful implementation of the Resolution Plan. The orders thereon are indicated against each.

¶202

sl. No.	Waivers,Reliefs andExemptionssought fromNCLT	Ordersthereon
I	The Hon'bleNCLTbepleasedtogiveor issue necessarydirections, instructionsto lheCentralBoardofDirectTaxation l"CBDT"),^{Central Boardof IndirectTaxes,} Customs,Value Addedf'axauthorities, StateGovernmentsTaxauthoritiestogrant lhereliefs/exemptions/waiversfrom rpplicability of Sections79,170and281of .heIncomeTaxAct,1961,forthepurposes rfimplementation of thisResolutionPlan.
2	The Hon'bleNCLTbepleasedtogiveor issuenecessarydirections, instructionsto theCBDT,Central BoardofIndirectTaxes, Customs, andValue Added Taxauthorities foexemptincome/gairVprofits,ifaty, arisingasaresultofgivingeffecttothe ResolutionPlan andfrombeingsubjectedto lncometaxinthehandsoftheCorporate Debtorunder theprovisionsofValue Added

¶203

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Page 18 of23

¶205

IN TI-IE NATIONAI- COI\4PANY LAW TRIBUNAI, CUTTACI( BENCIJ

IA No. 196lCTBl2020

TP No, 34lCTB|2019

lEarlier^{CP (lB) No.l174/KB/20lBJ}

¶210

sl. No.	Waivers,Reliefs andExemptionssought fromNCLT	Ordersthereon
	Tax,Customs,Octroi,Exciseduty,Service Iax,Goods andService Tax(GST),Income IaxAct,1961including but not limitedto anyincome taxandMinimumAlternate Tax (MAT) liabilityarisingonaccourltofthe StandaloneCapital ReductioninCorporate Debtor,writeoff/writedownofcurrent amountsduetoemployees,vendorsand cther Operational Creditors, valueofassets, valueofinventories,etc.withoutanyimpact rnbroughtforwardtaxandbookloss/ Jepreciationandwaiveallliabilities whethercrystallizedornotinrespectof Iaxes(includinginterestandpenalty) arising inrespectofperiodsuptotheNCLT ApprovalDate.
J	The Hon'bleNCLTbepleasedtogiveor issuenecessarydirections, instructions toall relevantGovernmentalAuthoritiestogrant relief/concessionsfrompaymentoffees, charges,stampduty,registrationfees (includingfbespayabletothejurisdictional ROC)forvariousactionscontemplated underthis ResolutionPlan(including forthe StandaloneCapital Reductionandissuance ofEquitySharesascontemplatedinthis Resolution Plan)andthat thefeespayable to the ROCinrespectoftheincreaseof authorizedsharecapitaland amendmentof memorandumofassociation andarticlesof msociationoftheCorporateDebtorfor nllotrnentoffreshsharestotheResolution Applicantand/oritsnomineesandother

¶211

-/ er6-' t ----'

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Page 19 of23

¶213

IN ]'I-IE NATIONAI, COMPANY LAW^TRIBUNAL CU'ITACI( BENCH

¶214

lA No. l96lCTBl2020

¶215

¶216

TP No. 34lCTB|2019 lEarlier^CP 0B)^{No,l174/KB/2018J}

¶217

sl. No.	Waivers,Reliefs andExemptionssought fromNCLT	Ordersthereon
	:elevant parties bewaivedandthe ROCbe Jirectedto approvetherelevant forms under .heCompaniesActandrulestheretowithout raymentoffeesinrespectthereof.
4	The Hon'bleNCLTbepleasedtogiveor issuenecessarydirections, instructionsto therelevantelectricityboardtogivethe exemptiontotheCorporateDebtorfrom makingpayment towardsreconnection ohargesofpower.
5	The Hon'bleNCLTbepleasedtogiveor issuenecessarydirections, instructionsto lheGovernmentofOrissamayalsoconsider providing from time totimesuchreliefand ;oncessionofGovernmentofOrissa ldmissibletosickunitsforexpeditious revival ofthe unit,
6	The Hon'bleNCLTbepleasedtogiveor issuenecessarydirections, instructionsto theall-Government authoritiesorany other authoritiesthatallthe licensesandapprovals obtainedbyCorporateDebtor shallremain valid.
7	The Hon'bleNCLTbepleasedtogiveor issuenecessarydirections, instructionsto the CentralExcise DepartmentthatOrder passedbyCESTAT through OrderNo. 33/Addl. Comm./CE)(IRKL/2015-16dated 30.72.2075,withrespecttoCENVAT Creditimposingdemand,penaltiesand interestonCorporateDebtor, shouldbe Jismissed andalldemandspertaining to that

¶218

c,&^--; " --'-'

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Page?O of23

¶220

INTHE NATIONAL, COMPANY I,AW^TRIBUNAI, CIJ'|'|ACI( BENCI.I

¶221

lA No, l96lc't'812020

¶222

¶223

TP No, 34lCTBl2j19 fEarlier^{CP (lB) No.l174/KB/20181}

¶224

sl.	Waivers,Reliefs andExemptionssought	Ordersthereon
No.	fromNCLT
	rrdershouldbewaivedoff.

¶225

11. Findings

¶226

11.1. On hearing the submissions made by the Ld. Counsel for the Resolution Professional, and perusing the record, we find that the Resolution Plan has been approved with 100% voting share. As per the CoC, the plan meets the requirement of being viable and f'easible for revival of the Corporate Debtor. By and large, all the compliances have been done by the RP and the Resolution Applicant for making the plan effective after approval by this Bench.

¶227

11.2. On perusal of the documents on record, we are also satisfied that the Resolution Plan is in accordance with sections 30 and 31 of the IBC and also complies with regulations 37, 38 and 39 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. No circumstances exist that militate against grant of approval for the Resolution Plan.

¶228

12. Orders

¶229

L2.1. Therefore, subject to the observations made in this Order, we hereby accord our approval to the Resolution Plan. The Resolution Plan shall form part of this Order.

¶230

r2.2. As far as the question of granting time to comply with the statutory obligations/seeking sanctions fiom governmental authorities is concerned,

¶231

c-[---/

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Page?l of23

¶233

IN TFIE NATIONAL COMPANY LAW^TRIBUNAI, CUTTACI( BENCH

¶234

IA No. l96lCTBl2020

¶235

¶236

TP No. 34lcTBlz}lg lEarlier^{CP (lB) No.ll74/KB/20lBl}

¶237

the Resolution Applicant is directed to do the same within one year as prescribed under section 31(4) of the Code.

¶238

r2.3. In case of non-compliance of this order or withdrawal of Resolution Plan, the CoC shall forfeit the EMD amount already paid by the Resolution Applicant.

¶239

t2.4. The Resolution Plan is binding on the Corporate Debtor and other stakeholders involved so that revival of the Debtor Company shall come into force with immediate effect.

¶240

L2.5. The Moratorium imposed under section 14 shall cease to have effect fi'om the date of this order.

¶241

L2.6. The Resolution Professional shall stand discharged from his duties with effect from the date of this Order. However, he shall perform his duties in terms of the Resolution Plan as approved by this Adjudicating Authority.

¶242

L2.7. The Resolution Professional is further directed to hand over all the records collected during the commencement of the proceedings to the Insolvency & Bankruptcy Board of India for their record and also return to tl're Resolution Applicant or New Promoters.

¶243

rz.B. Certified copy of this Order be issued on demand to the concerned parties, upon due compliance.

¶244

12.9. Liberty is hereby granted for moving any Application if required ir-r connection with implementation of this Resolution Plan.

¶245

12.10. A copy of this Order is to be submitted in the Office of the Registrar of Companies, Odisha.

¶246

PageZ2 of23

¶247

IN THE NATIONAI- COMPANY LAW TRIBUNAL CUT'IACI( BENCH

¶248

IA No. l96lCTBl2020 in TP No. 34lCTB|Tj19 fEarlier^{CP (lB) No.l 174/KB/2018J}

¶249

L2.L!. The Resolution Professional shall stand discharged from his duties with effect from the date of this Order.

¶250

12.72. The Resolution Professional is further directed to handover all records, premises/factories/documents to the Resolution Applicant to finalise the further line of action reqr"rired for starting of the operation. The Resolution Applicant shall have access to all the records/premises/factories/documents through the Resolution Professional to finalise the further line olaction required for starting of the operation.

¶251

12.13. IA (lB) No. l96lCTBl2020 and the main Company Petition i.e., CP (lB) No. 117481K812018 shall stand disposed of accordingly.

¶252

L2.L4. The Registry is directed to send e-mail copies of the order forthwith to all the parlies and their Ld. Authorized Representative for infbrrnation and for taking necessary steps.

¶253

t2.ts. certifled copy of this order may be issued, if applied for, upon compliance of all requisite formalities.

¶254

t2:.6. File be consigned to the record.

¶255

.g D,...--7;/ ,u-t,j / '-/ ,.' SyTu Ranjan?rasad fiembey(lechnical) / ,./ (_ ,,

¶256

¶257

Rajasekhar V.K. Member (Judicial)

¶258

Signed on this 06th day of August, 2021.

¶259

Ravijeet_P.S.

¶260

Page 23 of 23

In the matter of Jagannath Sponge Private Limited Ia No. 196-C'TB-2020 In Tp No.34-CTB-20l9 [earlier Cp (Ib) No. 1174-KB-20I8J

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In the matter of Jagannath Sponge Private Limited Ia No. 196-C'TB-2020 In Tp No.34-CTB-20l9 [earlier Cp (Ib) No. 1174-KB-20I8J

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