Allowed

In the matter of Kanak Pulp and Paper Mill Private Limited Ia (Ib) No. 22-CB-2021 in Tp No. 192-CTB-2019 [earlier Cp (Ib) No. 4701-MB-2018]

NCLT1 Nov 2021earlier CP (IB) No. 4701-MB-2018

Case brief

AI extract

What is this about?

This judgment approves a resolution plan under the Insolvency and Bankruptcy Code, 2016, for Kanak Pulp and Paper Mill Private Limited. The National Company Law Tribunal found that the plan was approved by 100% of the Committee of Creditors, met statutory requirements, and was viable and feasible for the revival of the corporate debtor. The tribunal directed the applicant to comply with statutory

What did the court decide?

The Resolution Plan was approved, the moratorium ceased, the Resolution Professional was discharged, and all stakeholders were bound by the plan.

In the matter of Kanak Pulp and Paper Mill Private… — Insolvency and Bankruptcy | NCLT (2021)

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IN TIfi NATIONAL COMPAI{Y LAW TRIBUNAL CUTTACK BENCH CUTTACK

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IA (B) No,22/CB/2021

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ln TP No.192/CTB/2019 [earlier^{CP (IB) No.4701lMB/20181}

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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,201,6

and

In the matter of,

TP No.l92/CTB/2019

[earlier,^{CP (IB) No.470I/MB/20I8J}

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DenaBank, having its registered officer atDena Corporate Centre, C-10, G- Block, Bandra Kurla Complex, Bandra, Mumbai, Maharashtra.

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...Financial Creditor

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Yersus

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Kanak Pulp and Paper MilI Private Limited, having its registered office situated at C/o Bharat Sales, opp. Hotel Grand Intemational, station Road, Raipur, Chhattisgarh- 492 001.

...Corporate Debtor

And

In the matter of

IA(IBlNo.22/CB/2021

Jagdish Kumar Parulkar, Resolution Professional of Kanak Pulp and Paper Mill Private Limited, resident of 8-56 Wallfort City, Bhatagaon, Raipur, Chhattisgarh.

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... Applicant

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Coram:

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Shri Rajase**rar V. K. : Member (Judicial)

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Shri Satya Ranjan Prasad : Member (Technical)

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IN THE NATIONAL COMPANY LAW TR]BUNAL CUTTACK BENCH

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IA No.22lCB12021 in TP No.l92lCTBl2019 [earlier^{CP (lB) No.4701iMBl20l8)} ln res; Resr.tlution Plan of Kanak Pulp and Paper Mill^{PrivateLimited}

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Appearances (through ildeo conferencing) : For the applicarLt

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Ms. Mrinali Prasad, Advocate

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Mr. Jagdish Kumar Parulkar, RP

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Order reseryed o* 21.09.2021 Order pronounced on: 01.11.2021

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ORDER

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Per: Rajasekhar V.K., Member (ludicial)

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Introduction

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The court convened viavideo conference.

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The present Application has been filed by Mr. Jagdish Kumar Parulkar, the Resolution Professional ('KP'), in the matter of Kanak Pulp and Paper Mills Private Limited (Coryorate Debtor), undergoing Corporate Insolvency Resolution Process (CIRP) for the approval of Resolution Plan under section 30(6) of Insolvency & Bankruptcy Code, 2016 ('IBC' or 'the Code) read with regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations, 2016 ['CIRP^{RegulationsJ by this Adjudicating Authorityas approvedby the} Committee of Creditors ('CoC').

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The Applicant Resolution Professional Mr. Jagdish Kumar Parulkar of Kanak Pulp and Paper Mills Private Limited is filing the present application under section 30(6) of the Insolvency & Bankruptcy Code, 20L6 for seeking approval of the Resolution P1an.

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Timeline of the CIRP

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The CIRP of the Corporate Debtor commenced by an order of this Adjudicating Authority dated 14.11.2019 in CP (IB) No.4707/MB/2078

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/'-, 1 bCN

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCBl202l in TP No.192iCTBl2019 [earlier^{CP (IB) No.470llMBl20t9l} In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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and Mr. Jagdish Kumar Parulkar was appointed as Interim Resolution Professional by this Adjudicating Authorify.

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The applicant Mr. Jagdish Kumar Parulkar was then confirmed as Resolution Professional by the CoC in their first meeting on dated 13.12.2019.

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The Resolution Professional appointed two sets of valuers as requfued under Regulation 27. A summary of the valuation determined is as below-

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Classof Asset	Nameof the valuers	FairValue (Rslakh)	Liquidation Value (Rs, lakhs)
Landand Building	1. SanjeevKalsiwal Ashutosh Kaushik 2.	2,13,04,700 2,09,17,000	84,87,600 92,24,000
Plantand Machinery	l- Sushant AggarwaL ManishKumar Khanduja 2.	52,58,000 51,00,000	42,06,400 41,00,000
Securities and	1.Anoop Kumar	0	0
FinancialAssets	Goyal
including Inventoryand Intangibles	2.MohitSagar	0	0
TotalAverage Yalue		2162r891550	2r03r491550

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During the course of the insolvency resolution process, there were seven meetings of the Committee of Creditors, as follows

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22iCB12021 in TP No.l92lCTBl2019 [earlier^{CP (lB) No.470llMB/20181} In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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MeetingNo.	DateofMeeting
1st	1,3.12.2019
2d	20.07.2020
3'd	14.02.2020
4rh	02.03.2020
5rh	18.06.2020
6h	t6.07.2020
, Continuationof6th	04.08.2020& 05.08.2020
7th	t4.08.2020

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The Resolution Professional published Form G on22.0L.2020 in the Raipur editions of Central Chronicle (English) and Naybharat (Hindi) newspapers, Form G was reissued ont5.02.2020.

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The Resolution Professional received Expressions of Interest (EoI) from Yedaru India Ventures Private Limited (Resolution Applicant) and Mr. Sanjiv Kumar Rathi and Mrs Drvya Sanjiv Rathi (Joint Resolution Applicant) and included in the finallist of prospective resolution applicants that was announced on26.03.2020.

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The Resolution Professional received a resolution plan from Vedaralndia Ventures Private Limited (Resolution Applicant) and Mr. Sanjiv Kumar Rathi and Mrs. Drvya Sanjiv Rathi (Joint Resolution Applicant) on 07.07.2020.

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Thereafter the Resolution Professional received a modified resolution plan from VedaralndiaVentures Private Limited (Resolution Applicant) and Mr Sanjiv Kumar Rathi and Mrs Drvya Sanjiv Rathi (Joint Resolution Applicant) on 11.08.2020, which was considered at the 7fr meeting of the

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IN THE NATIONAL COMPANY LAW TRIBUNAL CIJTTACK BENCII

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lA No.22lCB 12021 in TP No.192ICTB/2019 [earlier^{CP (lB) No.470llM812018)} ln res: Resolution Plan o/'Kanak Pulp and Paper Mill Private Limited

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CoC on L4.08.2020. The CoC deliberuted on the Resolution Plan in terms of section 30(4) and after discussion agteed to put the said Resolution Plan for physical voting at the same meeting. The Resolution Plan was approved by a vote share of 100% on the same day, i,e,, t4.08,2020.

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Keyfeatares of the Resolution Plan

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L2. The salient features of the approved resolution plan are as follows-

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The overall Plan amount is t10.54 crore.

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The Resolution Applicants propose to pay 100% of the CIRP cost of {25 lakh or actual CIRP cost, whichever is higher, within 60 days of the approval of the Resolution Plan.

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. The Resolution Applicants propose to pay to Workmen and Employees {2lakh.

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. Secured Financial Creditors are proposed to be paid12.72 Crore.

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The Operational Creditors shall be patd {1 lakh.

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. The Resolution Applicants propose to pay Statutory Dues in a sum of t1 lakh.

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The resolution applicants submitted an affidavit dated 07.07.2020 under section 294 confirming its eligibility to submit a Resolution Plan.

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Statutory Compliances

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The compliance of the Resolution Plan is as under:

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCBl202l in TP No.l92lCTBl2019 [earlier^{CP (rB) No.470llMB120181}

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In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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Section ofthe CodeI Regulati onNo.	Requirementwithrespectto Resolution Plan	Clauseof Resolution Plan	Complia nce (Yes/ No)
Section 30(1)	WhethertheResolution Applicanthassubmittedan afftdavit statingthatitis eligible?	Samehasbeen submittedwith theResolution Plan	Yes
30(2)	WhethertheResolutionPlan-
	(a) providesforthe payment ofinsolvencyresolution processcosts?	(a) The Resolution Applicantin Para 6.t of the ResolutionPlan has provided for thepaymentof insolvency resolution processcosts.	Yes Page79
	(b-1)provides forthepayment totheoperationalcreditors?	(b) The Resolution ApplicanttnPara 6.4 of the ResolutionPlan has provided for thepaymentof operational creditors.	Yes Page2l- 24
	(b-2)provides forthepayment tothefinancialcreditors who did notvoteinfavourofthe resolutionplan?	TheResolution ApplicantinPara 6.5 of the ResolutionPlan has provided for thepaymentof operational creditors	Yes Page 24

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCB12021 in TP No.192lCTBl2019 fearlier^{CP (]B)No.470llMBl2018l} In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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Requirementwithrespectto Resolution Plan	Clauseof Resolution Plan	Complia nce (Yes/ No)
(c)providesfor the managementoftheaffairsof thecorporatedebtor?	TheResolution Applicantin Para 11 of the ResolutionPlan has provided for themanagement oftheaffairsof theCorporate Debtor	Yes Page 28- 29
(d)providesfor the implementationand supervisionoftheresolution plaril	TheResolution Applicantin Para 12 of the ResolutionPlan has provided for the implementation andsupervision oftheresolution plan	Yes Page29- 30
(e)contravenesanyofthe provisionsofthelawforthe timebeinginforce?	Onperusalofthe ResolutionPlan submittedbythe Resolution Applicant namely,Yedara IndiaVentures PrivateLimited (Resolution Applicant)and Mr. Sanjeev Kumar Rathiand Mrs. Drvya SanjeevRathi (Joint Resolution Applicant)along with other	Yes Page15

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCB 12021 in TP No. 1 92lCTBl2019 [earlier^{CP (lB) No.4701/MBl20l8l}

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In res: Resolution Plqn o.f Kanak Pulp and Paper Mill Private^Limited

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Section ofthe CodeI Regulati onNo.	Requirementwithrespectto Resolution Plan	Clauseof Resolution Plan	Complia nce (Yes/ No)
		Declarations,it appearsthatthe ResolutionPlan dulyconforms to allthenecessary requirements specifiedbythe Board.Samehas beenprovidedin Para 3.2.4ofthe Resolution Plan
Section 30(4)	WhethertheResolution Plan (a)isfeasibleandviable, accordingtotheCoC? (b)has been approvedbythe CoCwith66%ovottngshare?	The Planis considered feasibleand viablebythe CoCandhas beenapprovedby CoCwith100% votingshare.	Yes
Section ofthe CodeI Regulati onNo.	Requirementwithrespectto Resolution Plan	Clause ofResolu	tionPlan
Regulati on38 (1)	Whethertheamount dueto theoperationalcreditors under the resolution planhas been given priorityin paymentoYerfinancial creditors?	Same hasbeenpro Para5-Financial theResolution Pla	videdforin Proposalof n
Regulati on	Whether theresolutionplan includesastatementastohow	Same has beenpro Para6oftheReso	videdforin lution Plan

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCB12021 in TP No.l92lCTBl2019 [earlier^{CP (lB) No.470llMB/2018]}

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ln re,s: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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Section ofthe Code/ Regulati onNo.	Requirementwithrespectto Resolution Plan	Clauseof Resolution Plan Complia nce (Yes/ No)
38(1A)	ithas dealtwiththeinterests ofallstakeholders?
Regulati on 38(1B)	(r)WhethertheResolution Applicantorany of its related partieshas failedto implementorcontributedto thefailureofimplementation of anyresolutionplan approved under theCode.	No.Same has beenprovided inPara3.2.3oftheResolution Plan.
	(i1)IfSo,whetherthe ResolutionApplicanthas submittedthestatement givingdetailsofsuchnon- implementation?	NA
Regulati	WhethertheResolutionPlan p	rovides for-
on38(2)
	(a)thetermof theplanandits implementationschedule?	Thesame hasbeen provided forinPara12.2ofthe Resolution Planatpage30
	(b)forthemanagementand conffol ofthebusinessof thecorporatedebtor duringitsterm?	TheResolutionApplicant in ParaL2oftheResolution Planhasprovidedforthe managementoftheaffairsof theCorporateDebtor.
	(c)adequatemeansfor supervising its implementation?	TheResolutionApplicant in Para12.2.1ofthe Resolution Planhasprovidedfor implementationand supervisionoftheresolution

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCBl202l in TP No.l92lCTBl2019 [earlier^{CP (lB) No.4701/M812018]}

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In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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Section ofthe CodeI Regulati onNo.	Requirementwithrespectto Resolution Plan	Clauseof ResolutionPlan	Complia nce (Yes/ No)
		plan.
38(3)	Whethertheresolutionplan demonsffates that- (a)itaddressesthecauseof default?	Same hasbeenpro Para5of theReso	videdforin lutionPlan.
	(b)itis feasibleand viable?	Asperfinancialp	rojections.
	(c)ithasprovisionsforits effective implementation?	Asperfinancialp	rojections.
	(d)ithasprovisionsfor approvalsrequired andthe timeline forthesame?	Para14oftheRe Plan	solution
	(e) theresolutionapplicant has thecapabrlityto implementtheresolution plan?	Para3.3ofthe Plan	Resolution
3e(2)	Whetherthe RPhasfiled applicationsinrespectof ffansactionsobserved, found ordeterminedbyhim?	Yes,transact section43and66 2016has beenid theRPandapp beenfiledbefore t	ionsunder ofthe IBC, entifiedby licationhas heNCLT
Regulati on39(4)	Provide detailsof performancesecurity received,asreferredtoinsub- regulation(4A)ofregulation 368.	ThePerformance theformofDema <68.00lakh hasa submittedtothe Professionalinco theRFRP.	securityin ndDraftfor keadybeen Resolution mpliance to

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IN TIIE NATIONAL COMPANY I-AW TRIBUNAL CUTTACK BENC}]

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lA No.22lCBl202l in TP No.l92ICTB/2019 [earlier^{CP (lB) No.4701/MBl2018)} In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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Concessions, reliefs and dispensations soaght:

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The Resolution Applicant has sought for the following concessions, reliefs

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and dispensations, upon each of which orders are passed as follows:

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sl. No.	-Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
1.	The ResolutionApplicantwillbe acquiringcontroloverthe Companypursuanttotheorder of the Adjudicating Authority/NclTandnot pursuanttothe usual acquisition processwhich wouldordinarily includeadetarTedduediligence andrepresentation,warranties andindemnitiesinrelation tothe affairsofthe Companyfromits ExistingPromoters.The ResolutionApplicantmaytake sometimeto discoveral1thenon- compliancesthat mayexistin relationtotheCompanyonthe dateofacquisitionofcontrolby theResolutionApplicantover theCompany.Assuchthe ResolutionApplicantmaytake sometimeto identiftsuch non- compliancesandtoaddress them.Inlightofthis,the Resolution Applicantpraysto the AdjudicatingAuthority/NCLT tograntitimmunityfromany actions andpenalties(ofany nature)/prosecutionunderany lawsforanynoncomplianceof lawsinrelationtothe Company orbytheCompany,whichwas	ItwasfortheResolution Applicanttoundertake proper duediligence,andnot thrustits owncarelessnessonthe AdjudicatingAuthorityand expectconcessionsinthis rcgard. Havingsaidthat,itisuptothe ResolutionApplicanttomake necessaryapplicationstothe concemedregulatoryor statutoryauthoritiesfor renewalofsuchbusiness permitsintermsofs.31(4)of the IBC,andsuchauthority shall alsoconsiderthesame keepinginmindtheobjectives oftheCode..

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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lA No.22lCBl202l in TP No.l92lCTBl2019 [earlier^{CP (lB) No.4701lMBl20I8]}

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In res: Resolution Plan o/'Kanak Pulp and Paper Mill Private Limited

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sl. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
	existingason the EffectiveDate andwhichcontinuesforaperiod ofupto12 (t'nrelve)monthsafter Effective Date.TheResolution Applicantundertakestocause theCompanytoexpeditiously identifusuchnon-compliances, evaluatethestepsrequiredto addresssuchnon-compliances and takestepstoremedysuch non-compliancestotheextent practtcallypossible.
2.	The DepartmentofRegistration andStamps, Governmentof ChhattisgarhandtheMCAto exempt theResolutionApplicant and the Company,fromthe levy of stamp duty,ROCfeeandother chargesapplicableinrelationto this Plananditsimplementation under thisPlan.	Notgranted.
3.	TheCentralBoardofDirect TaxestoexempttheCorporate Debtorfromtheapplicable provisionsofSection79rcad withSection 2(18)oftheIncome TaxAct,L961uponchangein shareholdingoftheCorporate Debtorpursuantto the ResolutionPlanandallowcarry forwardlossesoftheCorporate DebtorasontheEffective Date inthisregard,an opportunityto beprovidedbyResolution Professionaltothejurisdictional	Thisisfortherelevant authorities toconsider.

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCBl202l in TP No.l92lCTBl2019 [earlier^{CP (rB) No,4701/MBl201B)}

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ln res; Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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st. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
	Principal commissioner/ CommissionerofIncomeTaxto submithisviews andobjections, ifany,toenableNCLTtopass suitable ordersforpermitting carryforwardof depreciation and lossesaspertheIncomeTax Act,t96t.
4.	TheCenffal BoardofDirect Taxestoconsiderprovidingrelief tothe Corporate Debtorfromall pastlitigations pendingat differentlevelsandprovide waiverfromallTaxdues includinginterest andpenalty on suchlitigations.	Thisisfortherelevant authorities toconsider.
5.	TheCentralBoardofDirect TaxestoallowtheCorporate Debtortocarry forwardthe minimumaltematetaxcredit avaiTableason the EffectiveDate forthebalanceperiodasperthe provisionsof Income-tax Act,L96L	Thisisfortheappropriate authorities toconsider.
6.	TheCentralBoardofDirect Taxestoexemptfromlevying any typeofTaxesandstamp duty,ifany, arising on accountof transactionconsummatedor actions undertaken pursuantto theapprovaloftheResolution PlanbytheNCLTinaccordance withtheCode andnotinitiate anyproceedingsthere underthe	Thisisfortherelevanttax authorities toconsider.

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACI( BENCI-I

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IA No.22lCBl202l in TP No.192lCTBl2019 [earlier^{CP (lB) No.4701/MBl2018)}

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In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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sl. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
	provisionsofIncome-taxAct, 196lwithrespecttothe transaction,since such taxes and duties,ifrequired tobepaid,will rendertheResolutionPlan unviable.
7.	Accordingly,upon the Resolution Plan beingapproved bytheNCLT,theactions undertakenpursuanttothe implementationof the Resolution PIanshall bedeemed tobeexemptformanytax obligation undervarioustaxing statutes,includingbut notlimited tosections56and50CAunder theIncomeTaxAct,196l(as amendedfrom timetotime),as wellastheCenffalGoodsand ServicesAct2017(asamended from timetotime)andthe provisionsoftheIndianStamp Act,L899 and other laws relating topaymentofstampduty applicableinanystate.	Thisisfortherelevant tax authorities toconsider.
8.	A11assets(includingproperties, whether freeholdorlicense basis) oftheCorporateDebtortobe vestedin therestructured CorporateDebtorfree andclear of all Encumbrances,includingof allproperties mortgagedtotheh financial creditor andSecurity deposit with CSPDCL amountingto<29lakhnot	Granted.ffowever, inthecase ofelectricityduespayable to ChhattisgarhStatePower Distribution Company Limited,theamountof729 lakhlyingassecuritydeposit shallnotbeadjustedtowards anyelectricityduesoutstanding

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IA No.22lCB/2021 in TP No.l92lCTBl20l9 [earlier^{CP (lB) No.4701/MB12018]} ln res: Resohtion Plan of Kanak Pulp and Paper Mill Private Limited

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sl. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
	adjustablewithanyoutstanding electricitydues.	as on theinsolvency commencementdate.
9.	Anyandallcasesrelatingtothe claimssetfledbyvirtueofthis ResolutionPlanbedeemed settledasper thetermshereof.	Granted.InGhanashyam Mishra&SonsPttLtdv, Edelweiss AssetReconstruc-tion CompanyLtd,ltheHon'ble SupremeCourt heldinpara 95(1)thatonceaResolution Planisapproved,acreditor cannotinitiateproceedingsfor recoveryofclaimswhichare not paft oftheResolutionPlan.
10.	A11GovernmentalAuthoritiesto $arlt^{any relief,concession or} dispensationasmayberequired forimplementationofthe transactions contemplated under the Planinaccordancewithits terms andconditions.	Thisisfortheappropriate authoritiestoconsider, keeping inviewthe letter andspiritof theInsolvency&Bankruptcy Code,2016,whichistoenable freshstartforthecorporate debtor.
11	A11GovernmentalAuthoritiesto waivetheNon-Complianceof the CorporateDebtorpriortothe EffectiveDate.	Oncetheresolutionplanis approvedbythisAdjudicating Authority,thecorporatedebtor undernewmanagementshall haveoneyearintermsof section31()ofthe Insolvency &BankruptcyCode,2076, withinwhichtoobtainthe requisiteapprovals.The approprLateauthoritiesare requestedtoconsider thesame expeditiouslyandfavourably sincetheobjectofthe

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| 2021 SCC OnLine SC 3 13 decided on 13.04.2021 .

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCB12021 in^'l'P No.192ICTB12019 [earliel^{CP (lB) No.4701/MB/2018]}

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ln res: Resolution Plan of Kanak Pulp and Pctper Mill Private Limited

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sl. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
		Insolvency& Bankruptcy Code,2016,istoenablea fresh startforthecorporatedebtor. Suchauthoritiesmayalso consider whetherwaiverof non-complianceof the conditionsgoverningthegrant ofanylicenceorconcession wouldbe fatal ornot.
t2.	Anycharge, interest,penaltyor duespertainingtostatutory authoritiessuchasIncomeTax, ServiceTax/Goods andService Tax,VAT,feesunder Companies Act etc., whichremain outstandingevenafterpayments proposedinthis Resolution Plan priortoCIRPCommencement date shall standextinguished and bewaivedbytherespective authorities.	Granted.InGhanashyam Mishra&SonsPvtLtdu, EdelweissAssetReconstruction CompanyLtd,2theSupreme Court heldinpara95(i)that onceaResolutionPlanis approved,acreditorcannot initiateproceedingsfor recoveryofclaimswhichare not partof theResolutionPlan.
73.	RegistrarofCompanies/ RegionalDirector,Chhattisgarh, MCAfeesetc.toregisterDIN of the newDirectors,grant exemptionforPublicIssueand provide reliefs andconcessionas providedwithrespecttothem undertheResolutionPlan.	Notgranted.A11fi1ingfee payabletotheRoCshallbe paidbythecorporatedebtor undernewmanagement.The procedvralrequirementsfor registering theDINofthe new directorsshallbefollowedin full,except requirements sofaras obtaining in for shareholderapprovalis concerned.

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2 2021SCC Online SC 313 decided on 13.04.2021.

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA No.22lCB12021 in TP No.192lCTBl2019 [earlier^{CP (lB) No.4701/M812018]}

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ln res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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sl. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
		Asfarasexemptionforpublic issueisconcerned, sincethese areactsinthefuture,ful1 statutoryandregvlatory compliancesshallbemadeby thecorporate debtor,arldno exemptionisgrarfiedinthis regard.
74.	OnapprovaloftheResolution Plan, therelevantapprovals by theROC,RegionalDirector NCLTetc.requiredfor reduction sharecapital, consolidationof shares,exemptionfromthe public offer etc.asmaybe requiredtoimplementthe provision ofthe Resolution Plan willbedeemedtohavebeen gtarfied, However,any proceduralprocessifrequired wouldbe compliedwith bythe ResolutionApplicant.	Anyapprovalsrequired intemallywithinthecorporate debtorforrestructuringofthe corporate debtor as partofthe ResolutionPlan, shallbe consideredascompliedwith,if thesame has been envisagedin theResolutionPlanitself. However,all external procedural compliancessuchas fi1ingofnecessaryformswith theauthorities, paymentof filingfee etc.shallnotbe deemedtohavebeen waived and thesameshallbecomplied with.
15.	Anyclaimfromanyperson claimingtobeafinancial creditor oftheCompany,thathasnot beenfiledwiththeResolution Professional,oriffiledtheclaim, hasnotbeen verifiedbythe ResolutionProfessional,orif	Grantedintermsofthe judgmentof the SupremeCourt inGhanashyamMishraandSons u.Edelweiss Asset Reconstruction CompanyLimited,sinwhichit washeldinpara95(i)thatonce a ResolutionPlanisapproved,

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3 2021 SCC Online SC 3 1 3 decided on 13 .04.2021 .

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IN THE NATIONAL COMPANY LAW TRIBUNAICUTTACK BENCH

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lA No.22lCBl202l it TP No.l92lc'fBl20l9 fearlier^{CP (IB) No.4701/M812018)}

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In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

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sl. No.	'Waivers, Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
	verified,ithasnotbeeninformed totheResolutionApplicant beforesubmissionofthis ResolutionPlan,shal1stand waived andextinguishedand shallnolonger be payable.	acreditor cannotinitiate proceedingsforrecoYeryof claimswhicharenotpartof the ResolutionPlan.
16.	Anyclaimfromanyperson claiming tobeTradeCreditorof the Company,thathasnotbeen filed with theResolution Professional,oriffiled,hasnot beenverifiedbytheResolution Professionalorhas beenrejected bytheResolutionProfessional, orifverified,buthasnotbeen informedtotheResolution Applicantbeforesubmissionof thisResolutionPlan,shallstand waived andextinguishedand shallnolonger be payable.	Grantedintermsofthe judgmentof the SupremeCourt inGhanashyamMishraandSons v.Edelweiss Asset Reconstruction CompanyLimited,4inwhichit washeldinpara95(i)thatonce a ResolutionPlanisapproved, acreditorcannotinitiate proceedingsforrecoveryof claimswhicharenot partof the ResolutionPlan.
77.	Sincethevalueofassetsofthe corporatedebtaremuchlower thantheduestowardsthe FinancialCreditors,intermsof Section30(2Xb)readwith Section53oftheCode,no amountisproposedtobepaid towardssuch Statutory Dues and assuchdues/claimsifany towards such Statutory Authorities shallstandwaived	Grantedintermsofthe judgmentof theSupremeCourt inGhanashyamMishraandSons v, Edelweiss AssetReconstruction CompanyLimited,sinwhichit washeldinpara95(i)thatonce a ResolutionPlan isapproved, acreditorcannotinitiate proceedingsforrecoveryof claimswhicharenot partof the ResolutionPlan.

¶155

4 2021 SCC Online SC 3 l3 decided on 13.04.2021.

¶156

s 2021SCC OnLine SC 313 decided on 13.04.2021.

¶157

Page 18 of25

¶158

3d. r^--==-

¶159

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶160

IA No.22lCB12021 in TP No.192lCTBl20l9 [earlier^{CP (lB) No.4701/MB120181}

¶161

ln res: Resolution Plan of Kanak Pulp and Paper Mill Privote Limited

¶162

sl. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
	artdextinguishedwhether assessed,pendingassessmentor disputed.
18.	Accordingtotheprovisionsof Section 30(2)(b)of theCode, the OperationalCreditorsare entitledtosuch valuenotless thantheamounttobepaid tothe operational creditorsinthe event ofaliquidation ofthecorporate debtor undersection53.Inthe presentcase,resources available undertheResolutionPlanarenot sufficienttomake paymenteven SecuredCreditor,therefore, amountisdueandpayable towardsStatutoryDues. However,Resolution Applicant proposes{1.00 lakhpaymentof existingliability asonCIRP commencementdate andthe balanceamountoutstanding againstthem asontheCIRP CommencementDatewillstand waivedand extinguished.	Thisisnotinthenatureofa concession,waiveror dispensation.Therefore,no ordersarenecessaryinthis rcgard.
t9.	Post approvalofresolutionplan, theentireduetowardsall Statutory Duesason theCIRP CommencementDateshall stand waived,settled and extinguished, andno claims whatsoever, of any natvre,shal1subsist/ exists.	Grantedintermsofthe judgmentof the SupremeCourt inGhanashyamMishraandSons y, Edelweiss AssetReconstruction CompanyLhnited,6inwhichit washeldinpara95(i) thatonce a ResolutionPlanisapproved, acreditorcannotinitiate

¶163

6 2021 SCC Online SC 3 I 3 decided on 13 .04.2021 .

¶164

3a^--./

¶165

Page 19 of25

¶166

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶167

IA No.22iCB12021 in TP No.192lCTBl2019 [earlier^{CP (lB) No.4701/MB12018]}

¶168

In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

¶169

sl. No.	Waivers,Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
		proceedingsforrecoveryof claimswhicharenot partof the ResolutionPlan.
20.	Anyclaimfromanyperson claimingto beStatutory Authorityof theCompany, that hasnotbeenfiledwiththe ResolutionProfessional,orif filed,hasnotbeenverified bythe ResolutionProfessionalorhas been rejectedbytheResolution Professional,orifverified,but hasnotbeen informedtothe ResolutionApplicantbefore submissionofthisResolution Plan, shallstandwaivedand extinguished and shallnolonger bepayable.	Grantedintermsofthe judgmentof the SupremeCourt inGhanashyamMishraandSorus v, Edelweiss AssetReconstruction CompanyLimited,^Tinwhichit washeldinpara95(i) thatonce a ResolutionPlan isapproved, acreditorcannotinitiate proceedingsforrecoveryof claimswhicharenot partof the ResolutionPlan.
2t.	Itisfurtherclafifredthatalldues undertheprovisionsofIncome TaxAct,196L,VAT,Service Tax,GoodsandServiceTax, customdutyand anyamount payableundertheCompanies Act2013/1956etc, including taxes,duty,penalties,interest, fines,cesses,unpaidTax DeductedatSource/Tax CollectedatSource,whether admittedor not,dueor contingent, whetherpafiofabove	Grantedintermsofthe judgmentof the SupremeCourt inGhanashyamMishraandSons tEdelweiss AssetReconstruction CompanyLimited,sinwhichit washeldinpara95(i) thatonce a ResolutionPlanisapproved, acreditor cannotinitiate proceedingsforrecoveryof claimswhicharenot partof the ResolutionPlan.

¶170

7 2021 SCC OnLine SC 313 decided on 13.04.2021.

¶171

8 2021 SCC Online SC 3 1 3 decided on 13 .04.2021 .

3& "'

Page20 of25

-'--'./

IN THE NA'|IONAL COMPANY LAW TRIBUNAICUTTACK BENCH

¶176

IA No.22lCB12021 in TP No.192lCTBl2019 [earlier^{CP (lB) No.4701/MB12018)}

¶177

In res: Resolution Plan of Kanak Pulp and Paper Mill^{PrivateLimited}

¶178

sl. No.	'Waivers, Reliefsand Exemptionssoughtfrom NCLT	Orders thereon
	claim ofIncome Tax Authorities ornot,pertainingtoanyperiod prior to the CIRP Commencementdatewhether partofduediligencefindingor not,assertedorunasserted, crystallizedoruncrystallized, knownorunknown,securedor unsecured,disputedor undisputed, presentorfuture, shall standextinguishedby virtue ofthe orderoftheAdjudicating Authority/NCLTapproving this Plan andtheCompany would notbeliabletopay anyamount againstsuchdemand.A1l, assessments/appellateorother proceedingspendingincaseof the Company, on thedateofthe orderofAdjudicatingAuthority /NCLTrelatingtotheperiod priortothatdate,shallstand terminatedand allconsequential liabilities,ifany,shouldbe treatedaswaived/written off andshould beconsideredtobe notpayablebytheCompany by virtueoftheorderonthe AdjudicatingAuthority/NCLT. A11notices proposingtoinitiate anyproceedingsagainstthe company in relationtotheperiod prior to the CIRP
	CommencementDateand pendingonthatdate, shallbe

¶179

Ed.

¶180

Page2l of25

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶182

IA No.22lCB 12021 in TP No. l92lCTBl2019

¶183

[earlier^{CP (lB) No.4701/MB/2018]}

¶184

In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

¶185

sl.	'Waivers, Reliefsand	Orders thereon
No.	Exemptionssoughtfrom NCLT
	considerednonestinlaw/ cancelled/rccalledandshould notbeproceededwith.Postthe orderof theAdjudicating Authority/ NCLT, no assessment/re-assessment/ revisionoranyother proceedings undertheprovisionsofthe IncomeTaxAct, VAT,Service Tax,GSTorany other Statutory Authorityshouldbeinitiated againsttheCompanyinrelation toperiodpriortotheCIRP CommencementDateandany consequential demandshouldbe considered nonestinlawand wouldnot bepayablebythe Company.Anyproceedings whichwerekeptinabeyancein view ofprocessundertheCode orotherwiseshouldnotbe revivedposttheorderofthe AdjudicatingAuthorify/NCLT.

¶186

The RP has declared that Resolution Plan meets all the statutory requirements as required under the Code and the applicable regulations framedby the IBBI. The RP has also reported that the Plan was evaluated, 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 A-15.

¶187

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Page22 of25

¶189

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶190

IA No.22lC812021 in TP No.l92lCTBl2019 fearlier^{CP (lB) No.4701iMB12018l} In res: Resolution Plan of Kanak Pulp and Paper Mill Private^Limited

¶191

t7. The Resolution Applicant was informed about the decision of the CoC and results of voting (Physical) through an email dated14.08.2020 issued by the Resolution Professional. In pursuance thereof, the successful resolution applicant being Yedara India Ventures Private Limited and Mr. Sanjiv Kumar Rathi and Mrs. Drvya Sanjiv Rathi have deposited a performance security of t68,00,000 in the form of Demand Draftwith the RP.

¶192

Analysis and orders

¶193

On hearing the submissions made by the Leamed Counsel for the Resolution Professional, and perusing the record, we find that the Resolution Plan has been approved with 100% majority by the CoC, as against the minimum threshold of approval by 66% majority of the CoC. As per the CoC, the Resolution Plan meets the requirement of being viable and feasible 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 approvaLby this Adjudicating Authority.

¶194

On perusal of the documents on record, we are satisfied that the Resolution Plan is in accordance 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, 201.6.

¶195

As far as the question of granting time to comply with the staflrtory obligations or seeking sanctions from governmental authorities is concerned, the Resolution Applicant is directed to do the same within one year as prescribed under section 3L(4) of the Code.

¶196

There is no opposition from any quarter as regards the Resolution Plan. No circumstances existthatmrlitate againstgrant of approvalfor the Resolution Plan. Therefore, subject to the observations made in this Order, the

¶197

¶198

Page 23 of 25

¶199

IN'fHE NATIONAL COMPANY LAW TRIBUNAL, CUTTACI( BENCH

¶200

IA No.22lCB/2021 in TP No.192lCTBl2019 [earlier^{CP (lB) No.4701/MBl20tBl} In res: Resolution Plan of Kanak Pulp and Paper Mill Private Limited

¶201

Resolution Plan under consideration is hereby approved. The Resolution Plan shall form part of this Order.

¶202

Any relief sought in the Resolution Plan, where any conffact, agreement, understanding, proceeding, action, notice etc. not specifically identified, or is for a future contingency, is, at this point of time, rejected.

¶203

The Resolution Plan as approved is binding on the Corporate Debtor and other stakeholders involved so that the revival of the Corporate Debtor can come into force with immediate effect.

¶204

The Moratorium imposed under section 14 shall cease to have effect from the date of this order.

¶205

In case of non-compliance of this order or withdrawal of Resolution Plan, the CoC shall forfeit the performance gtarantee amount akeady paid by the Resolution Applicant.

¶206

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 approved by this Adjudicating Authority.

¶207

The Resolution Applicant sha1l have access to all, the Corporate Debtor's records, documents, assets and premises with effect from the date of this Order, to finalise the further line of action required for starting the business operations of the Corporate Debtor.

¶208

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

¶209

The Application being IA No.22/CB/2021 along with TP No.192lCTB/2019 [earlier, CP No.4701lMB/20181 are disposed of accordingly.

¶210

e,d'

¶211

Page 24 of 25

¶212

IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

¶213

IA No.22lCB12021 in TP No.l92lCTBl2019 [earlier^{CP (rB) No.470llMBl20l8]} ln res: Resolution Plqn o/'Kanak Pulp and Paper Mill Private^Limited

¶214

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

¶215

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.

¶216