Allowed

In the matter of Swain Aluminium Pvt. Ltd. I.A (Ib) No 55-CB-2021 in C.P. (Ib) No. 168-CTB-2019

NCLT1 Nov 2021

Case brief

AI extract

What is this about?

The National Company Law Tribunal Cutoff Bench approved a Resolution Plan for Swain Aluminium Pvt. Ltd. submitted by Binay Kumar Singhania under the Insolvency and Bankruptcy Code, 2016, finding it viable and feasible with 100% COC voting support.

What did the court decide?

Resolution Plan approved; Moratorium under Section 14 ceased; Resolution Plan binding on parties.

In the matter of Swain Aluminium Pvt. Ltd. I.A (Ib) No… — Insolvency and Bankruptcy | NCLT (2021)

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IN TIIE NATIONAL COMPAI{Y LAW TRIBI.JNAL CUTTACK BENCH CUTTACK

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I.A^(IB) No 55/CB /2021,

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C.P. (IB) No. 168/CTB/2019

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In the tnatter of:

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Application under Section 30(6) for approval of Resolution Plan under Section 31(1) of the Insolvenry and Bankruptcy Code, 2016;

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And

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In the matter of:

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Swain Aluminium Pw. Ltd., a company having its registered office at House-2, Green Park, Sailashree Vihar, Bhubaneswar 75L021 (CIN: u 27 203 OR2009PTC 0 1 0 687) ;

...Coroorate Debtor

And

In the matter of:

Binay Kumar Singhania, Resolution Professional appointed under Section 22 of the Insolvency and Bankruptcy Code 20L6 havng his office at BKS & Co, Diamond Heritage, 16 Strand Road, Unit- 519, 5th Floor, Kolkata- West Bengal.

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...Applicant,/Resolution

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Professional

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Coratn:

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

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Appearances (through ildeo conferencQ :

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For the Applicant : 1. Mr. Saswat Kumar Acharya, Adv. ,2.Mr. Binay K. Singhania, R.P.

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Ms. S. Pholgu, Adv.

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Mr. A. Agarwal, Adv.

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Ms. J. Sahoo, Adv.

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_-,,

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019 In res: Resolution Plan of Swain Aluminum^Pvt. Ltd

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Order reserved oni 23.09.2021 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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1, Preliminary

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1.1. The instant application vide IA (IB) No. 55/CB/202L was moved on 25.06.2021 by Mr. Binay Kumar Singhania, Resolution Professional of Swain Aluminium Private Limited (CIN : U 27 203OR2009PTC0 1 0 687) by invoking the provisions of section 30(6) of the Insolvency and Bankruptcy Code, 2016 (((]he Code" or^((ID,C") read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvenry Resolution Process for Corporate Persons) Regulations, 2016 ((CIRP Regulations") for approval of a Resolution Plan in respect of Swain Aluminium Private Limited, the Corporate Debtor herein.

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1.2. The underlying Company Petition in CP (IB) No. L68/CTB/2019 was filed by the Corporate Debtor as a Corporate Applicant under Section 10 of the Code which was admitted vide order dated20.02.2020.

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1.3. Initially Mr. Saradindu Jena having Regisration No. IBBI/IPA-002/IPN00520/20L7-18/1L622 was appointed as the Interim Resolution Professional. Thereafter, vide order dated t5.07,2020, the present Applicant, Mr. Binay Kumar Singhania having Regn. No IBBI/IPA001/IP-P00041/2017-18/10102 was appointed as the Resolution Professional.

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Collation of Claims

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2.1. The claims existing as on date of the hearingand the proposal thereto in the resolution plan are as follows:

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		Amountadmitted	Amount
S.No.	CategoryofClaim	asper	proposedtobe
		Infomation	paidasperthe

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019 In res: Resolution Plan of Swain Aluminum^Pvt, Ltd

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		Memorandum	Resolution
		(rNR)	Plan(INR)
1	CIRPCost		40,00,000/-
2	FinancialCreditors	54,82,80,L84/-	5,30,00,000/-
3	OperationalCreditors	t0,25,000/-
4	OperationalCreditors (Govt.Dues)	50,45,705/-
5	Workmen and Employees
	Total	55r43,50,889/-	5,70,00,000/-

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3, CIW Processes and Compliances

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3.1. The Applicant has stated that a total of fifteen meetings of the Committee of Creditors (((COC") have been held during the CIRP period. One COC meeting was convened by the Interim Resolution Professional and 14 COC Meetings were convened by the Applicant, Resolution Professional.

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Particulars	Date of COC Meeting
1'tCOCMeeting	19.03.2020
2'dCOCMeeting	24.08.2020
3'dCOC Meeting	2t.09.2020
4thCOC Meeting	23.09.2020
5thCOCMeeting	16.L0.2020
6thCOCMeeting	04.71.2020
7thCOCMeeting	2L.12.2020
8'hCOC Meeting	19.02.2027
9'hCOC Meeting	08.03.2021
10'hCOC Meeting	t2.03.202t
11'hCOC Meeting	22.03.2027
12thCOC Meeting	t2.04.202r

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCII

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IA (IB) No.55/CB/2021 IN CP (IB) No.16BICTB/2019 In res: Resolution Plan of Swain Aluminum^Pvt. Ltd

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13'hCOC Meeting		12.05.2021
	L0.06.2021	whichwasadjournedto
14thCOC Meeting	t1.06.2021	andthereafter adjournedto
	t4.06,2021,
15thCOCMeeting		19.06.2027

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3.2. The Applicant submits 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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Yaluer	Category	FairMarketValue	Liquidation Yalue
MukeshKJain	Financial Assets
Rahul Parasrampuria	Financial Assets
Average	Yalue
Valuer	Category	Fair MarketYalue	Liquidation Value
AtulKShukla	Land& Building	2,55,70,260.00	2,06,96,208.00
Sanjeev Kasliwal	Land& Building	2,71,77,000.00	1,90,20,000.00
Average	Yalue	2,63,70,630.00	1,98,58,104.00
Yaluer	Category	Fair MarketYalue	Liquidation Yalue
Abhishek Shukla	Plant& Machinery	3,57,32,356.00	3,03,92,502.00
ManishK Khanduja	Plant& Machinery	3,79,58,528.00	3,03,66,822.00

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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019 In res: Resolution Plan of Swain Aluminum^Pvt. Ltd

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Average Value

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|^{3,6t,1s,M2.00} |^{3,03,79,662.00}

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3.3. The Resolution Professional had issued invitations for Expression of Interest (((EOI") from potential Resolution Applicants on 31.08.2020, 22.L0.2020,25.t2.2020 and 14.05.202t respectively, with the last dates for submission of the EOIs on 30.09.2020, 05.Lt.2020, 09.0t.2021 and 2t.05.202L, respectively. For submission of Resolution Plan for the Corporate Debtor, in terms of the provisions of section 25(2)(h) of the Code read with Regulation 36,4. of the CIRP Regulations. The notice was also published on the website of the IBBI.

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3.4. The CIRP period was extended from time to time with approval of this Adjudicating Authority as follows:

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1.1. IA (IB) No. 2/CB/2021 - CIRP periodwas extendedby a period of 90 days beyond 180 days from23.L2.2020, vide order datedL9.0l.202l;

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t.z.IA (IB) No. 30/CB/2021-Exclusion of COVID-19 pandemic period from 25.03.2020 to 3L.10.2020, vide order dated 30.03.202L.

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3.5. The Applicant has submitted that he received 4 Resolution Plans from the following Res olution Applicants :

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. QVC Exports Pvt. Ltd.;

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Fortis Chemicals Pvt. Ltd.;

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NKandoi/ NBalakrishnan;

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Sahebrarr*a Projects Limited

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4, Evaluation and Yoting

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4.t. The Applicant conducted the 14'h COC Meeting ont0.06.2021 wherein the Resolution Plans were opened in the presence of individual Resolution Applicants and the financial offer of each Resolution Applicant was announced in public. Thereafter, the meeting was adjourned to 11.06.202t, wherein open bidding process between the Resolution Applicants was initiated. In the 2nd round of negotiation, two Resolution Applicants

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/C-tB/2019 In res: Resolution Plan of Swain Aluminum Pvt Ltd

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namely Fortis Chemical Pvt. Ltd. and N. Kandoi & N. Balakrishnan (ointly) expressed their desire to opt out as they did not want to participate further after having knowledge of all financial offers. Thereafter the open bidding process benveen QVC Exports Pvt. Ltd. and Sahebramka Projects Limited continued their open bidding. Since the Resolution Applicants continued with the open bidding process, the 14th COC Meeting was further adjourned to 14.06.2021.

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4.2. Thereafter on the adjoumed date, Sahebramka Projects Limited emerged as the H1 Bidder offering Rs. 5.65 crores upfront. The members of COC further negotiated with the Hl Bidder and Sahebramka Projects Limited agreed to revise the offer to Rs 5.70 crores as all upfrontwithin 90 days from the date of approval of Resolution plan by this Adjudicating Authority. Further, Rs. 2 crores as performance security shall be deposited within a day or two from the date of receipt of the letter of intent.

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4.3. The Applicant placed before the members of COC all the four Resolution Plans for consideration and the Resolution Plan being more viable and feasible to be passed by the members of COC. The members of COC thereafter approved the Resolution Plan submittedby Sahebramka Projects Limited which was passed with 100% majority voting share.

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5, Salientfeatures of the approved Resolution Plan

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5.1. The Resolution Applicant has provided for payment of CIRP cost and other stakeholders of the corporate debtor as per the provisions of the Code.

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5.2. The Applicant has also placed the relevant exffacts of the valuation report on record. A chart disclosing the averuge liquidation value has also been placed on record. The amount being paid through the Resolution Plan is higher than the ayerage liquidation value.

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Compliance of the saccessful Resolation Plan with tarious prwisions

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6.1, The Applicant has submitted the details of various compliances as envisaged by the Code and the CIRP Regulations which a Resolution Plan is required to adhere to, as follows:

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019

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In res: Resolution Plan of Swain Aluminum Pvt. Ltd

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I. Submission of Resolution Plan in tems of section 30(2) of the Code

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Clauseof Sec.30(2)	Requirement	Howdealtwithinthe Plan
(a)	Planmustprovidefor paymentofCIRPcostin prioritytorepaymentto furtherdebtsofCDinthe mannerspecifiedbythe Board.	Part B- Clause7.1, pgno.27ofthePlanandpg28 andpg40 of the word andPDF copyrespectively;andpg407of theApplication.
(b)	Planmustprovideforrepay Creditorsinsuchmannerasm whichshallnotbelessthan-	mentofdebtsofOperational ay bespecifiedbytheBoard
	(1)theamountpayableto suchcreditorsinthe eventofliquidation undersection53;or	Part B- Clause7.1, pgno.27ofthePlanandpg28 andpg40 of the wordandPDF copy respectitely; andpg407of theApplication.
	(ii)theamountthatwould have beenpaidtosuch creditors,iftheamount to bedistributedunderthe resolutionplanhadbeen distributedinaccordance withtheorderof priority insub-section(1)of section53,whicheveris higher;and	Part B- Clause7.1, pgno.27ofthePlanandpg28 andpg40 of the word andPDF copyrespectively;andpg407of theApplication.
	(iii)providesforpaymentof debtsoffinancialcreditors whodonotvoteinfavour oftheresolutionplan,in such manneras maybe specified by the Board.	Part B- Clause7.2, pgno. 27of thePlan(andpg 28 of thewordcopy andpg41 and PDFcopy)respectively;and pg 408of theApplication

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019 In res: Resolution Plan of Swain^{AluminumPvt. Ltd}

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Clauseof Sec.30(2)	Requirement	HowdealtwithinthePlan
(c)	Managementof the affairsof theCorporateDebtorafter approvaloftheResolution Plan.	Part A- Clause3, pgno.15 of thePlan(andpgno. l5ofthewordcopy andpg.no.28 ofthepdfcopyrespectfuely);and pgno. 395
(d)	Implementationand Supervision ofResolution Plan.	PartB-Clause11,12,and13, pgno.33of thePlan(andpgno. 34 andoftheWordcopyandpg no.46of the PDFcopy respectfuely);andpgno, 413to 420.
(e)	Plandoesnot contravene any ofthe provisionsofthe law forthetimebeinginforce.
	Confirmstosuchother
(0	requirementsasmaybe specifiedbythe Board.

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II. Measures required for implementation of the Resolution Plan in tems of Regulation 37 of CIRP Regulations:

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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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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019 In res; Resolution Plan of Swain Aluminum Pvt. Ltd

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Particulars	RelevantProvision of theResolution Plandealingwith Regulation37
(a) transferof all or pafioftheassetsofthe corporate debtortoone or morepersons;	Notproposedinthe plan
(b)saleof all orpartoftheassetswhether subjecttoany security interest ornot;	Notproposedinthe plan
(ba)resructuringofthecorporatedebtor,by \Mayofmerger,amalgamationand demerger;	Notproposedinthe plan
(c)the substantialacquisition ofsharesof the corporatedebtor,orthemergerorthe consolidationofthecorporutedebtor withoneormorepersons;	Notproposedinthe plan
(ca)cancellation or delisting of anysharesof the corporate debtor,ifapplicable;	Page53 ofthe Resolution Plan
(d) satisfaction ormodificationof any security interest;	Page53 ofthe Resolution Plan
(e)curingorwaivingofanybreachofthe termsofany debtduefromthe corporate debtor;	Notproposedinthe plan
(f)reductionintheamountpayabletothe creditors;	Page53 ofthe Resolution plan
(g) extensionofamaturitydateor achange ininterest rateorothertermsofadebt duefromthe corporate debtor;	Notproposedinthe plan

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IA (iB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019 In res: Resolution Plan of Swain^{AluminumPvL Ltd}

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Particulars	RelevantProvision of theResolution Plan dealingwith Regulation37
(h)amendment of theconstitutional documents of the corporate debtor;	Notproposedinthe plan
(i)issuanceofsecuritiesofthecorporate debtor,forcash,property,securities, or inexchangeforclaimsorinterests,or otherappropriatepurpose;	Page53 ofthe Resolution plan
f)^{changeinportfolioofgoodsorservices} producedorrenderedbythecorporate debtor;	Notproposedinthe plan
(k)changeintechnologyusedbythe corporate debtor; and	Notproposedinthe plan
(l)obtainingnecessary approvalsfromthe Central andStateGovernmentsand other authorities	Page53 ofthe Resolution plan

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III. Mandatory contents of Resolution Plan in terms of Regulation 38 of CIRP Regulations:

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019

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In res: Resolution Plan of Swain Aluminum Pvt. Ltd

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Ref.to relevant Regulatio n	Requirement	Howdealtwithinthe Plan
	(a)The amountpayable
38(1)	totheoperational creditorsundera resolutionplanshall bepaidinpriority over financial creditor.	Part B-Clause7.4, pgno.28 ofrhePlan(andpg29 ofthewordcopy andpg41and PDFcopy)respectfuely; andpg 408oftheApplication
	(b) The amountpayable to thefinancial creditorsundera resolution plan, who havea righttovote undersection 2l(2) and didnotvote in favour of the resolutionplanshall bepaidinpriority over financial creditorswhovoted infavourof the Plan.	Page23Clause 5 ofthePlan
38(1A)	A.resolutionplansha1l mcludeastatementasto rowithasdealtwiththe nterests of all ;takeholders,including inancialcreditorsand rperational creditorsof hecorporate debtor.	PartB-Clause7.5, pgno,29 ofthePlan(andpg30 ofthewordcopy andpg42and PDFcopy)respectiuely; andpg 409oftheApplication

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IA (IB) No.55/CB/2021 IN CP^(IB) No.168/CTB/2019 In res; Resolution Plan of Swain Aluminum Pvt, Ltd

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Ref.to relevant Regulatio n	Requirement	HowdealtwithinthePlan
38(18)	Aresolution planshall includeastatement givingdetailsofthe resolution applicantor any ofits relatedparties hasfailedtoimplement orconffibutedtothe failureof implementationofany otherresolutionplan approvedby the AdjudicatingAuthority atanytimeinthe past.	Notincludedinthe Plan
38(2)	Aresolution planshallpro	vide:
	(a) the termoftheplan and its implementation schedule;	PartB-Clause11,pgno. 33of thePlan(andpgno.34andof theWordcopy andpgno.46of thePDFcopy respectively);and pg no.a13-4l6,pf____tle Application.
	(b)themanagementand conffol of the businessof the corporatedebtor duringitsterm; and	PartB-Clause 13; pg.no.39,40 ofthePlan;(and pg.no.419420ofthe Application).
	(c)Adequate meansfor supervising itsimplementation	Part B-Clause13.2.5: pgno. 39,40 ofthePlan;(and pg.no.419420ofthe Application).
38(3)	Aresolution planshall dem	onsffatethat-
	(a)itaddressesthecause ofdefault;	Part B-Clause7.1.3;10.5.2, pgno. 27, 32 ofthePlan(and pg.no.407 &pgno.412ofrhe Application).

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IA (IB) No.55/C.B/2021

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IN CP (IB) No.168/CTB/2019 In res: Resolution Plan of Swain Aluminum^Pvt. Ltd

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Requirement		HowdealtwithinthePlan
(b)it isfeasible viable;	and	Part B-Clause 13; pg.no.39,40ofthePlan(and pg.no.419420ofrhe Application).
(c)ithas provisions its effec implementation;	for tive	Part B-Clause11.2, 12,13.2; pg.no. 34-40 ofthePlan(and pg./xo.414420ofthe Application).
(d)ithasprovisions approvalsrequ and the timeline thesame;and	for ired for	PartB-Clause10.3,11.2, pg.no.31,34,35ofthePlan (andpg.no.411, 413ofthe Application).
(e) theResolu Applicanthas capabrlity implement resolutionplan.	tion the to the	PartA-Clause4, pg.no.16,17ofthePlan(and pg. no.396,397ofthe Application)"

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6.2. The Applicant submits that the successful resolution applicant has submitted a cefiifrcate of eligibility under section 29A of the Code, as required by regulation 39(1)(a) of the CIRP Regulations. An undertaking 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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6.3. The Applicant has filed a Compliance Certificate in prescribed Form 'H' in compliance with regulation 39@) of the CIRP Regulations. Evidence of receipt of performance securlty as required under regulation 368(4,4.) is placed on record.

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7, Synopsis of the financial proposals:

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IA (IB) No.55/CB/202r

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IN CP (IB) No.168/CTB/2019

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In res: Resolution Plan of Swain Aluminum Pvt. Ltd

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Particulars	InRs.
UsesofFund
UpfrontConsideration(Cash)for	5,70,00,000/-
SecuredFinancialCreditor+CIRPCost	(CIRPCosttobe paidonpriorityand balancetosecured financial creditorin the respective votingshare)
Deferred payment for Resolution of Debt	Nit
UpfrontPay.ment Employees	Nil
Operational Creditors Other Operational Creditors	Nil
FreshInfusionof for FixedAssets(Plant& Machineries)	2,00,00,000/-
FreshinfusiontowardsWorkingCapital(overa periodoftime)	5,00,00,000/-
Total	12,70,00,000/-
SourceofFunds
From OwnContribution Equity	5,70,00,000/-
of Loan	7,00,00,000/-
ResolutionApplicant:
Total	12,70,00,000/-

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Basis of settlement of claims & settlement amount to take care of all the stakeholders:

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8.1. The basis of settlement of claims ofvarious class of stakeholders, their order of priority and their respective settlement amount is provided under:

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Orderof Priority	Natureof Creditor	BasisofSettlement&indicativeamount
1"	CIRP Cost	Thereis nomentionofCIRPcostinthe InformationMemorandumprovidedbythe ResolutionProfessional. Henceitisestimated at Rs40lacs (as knownduringdiscussion). However shortonCIRPcost,ifany,hastobe paidinprioritytoothers.Insuchacaseupfront

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IA (IB) No.55/CB/2021 IN CP (IB) No.168/CTB/2019 In res: Resolution Plan of Swain Aluminum^{Pvt. Ltd}

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Orderof Priority	Natureof Creditor	BasisofSettlement&indicativeamount
		amounttobepatdtosecuredFinancial Creditorsshallget reducedbyCIRPCost.
2d	Duesto 'Worlonan/ Employees (otherthan rclated parties ofCD)	Nil Thereisnoduestobepaidtoanyworkmenor employeesbytheCorporateDebtoras^per InformationMemorandumprovidedbythe ResolutionProfessional.
3..1	Operational Creditors includingGovt statutorydues	LiquidationvalueavarTabletoOperational CreditorsisNil.ResolutionApplicantProposes topayNilamounttoallOperationalCreditors including statutorydues.
4h	Secured Financial Creditors	UpfrontamountofRs.5,30,00,000/-(Rupees FiveCroreThirtyLakhsOnlv) (Totalamount 570 lacs asreducedbyCIRPCostinactval presently estimatedat40lacs)shallbe distributed amongthefinancialCreditors in proportion to their admitted claimasbelow:
		i)IndianOverseasBank-6951%Rs 3,68,40,300/-
		ii) OdishaGramyaBank-30.49% Rs.1,61,59,700/-
6rh	Shareholders	NIL

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9, Indicative Ttercentage of recovery of each stakeholder

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(Figures in Rs.)

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Particulars	AdmittedDebt	Settlement	o/oageof
	asondateof ResolutionPlan	Amount	admittedDebt
SecuredFinancial	54,82,80,184	5,30,00,000/-	9.67%
Creditors
Workman &
Employees Dues

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IA (IB) No.55/CB/2027 IN CP (iB) No.168/CTB/2019

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In res: Resolution Plan of Swain^{AluminumPvL Ltd}

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UnsecuredFinancial
Creditors
Operational	60,70,705 /^-	0	0
Creditors
Other Creditors

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10, Proposedcotporate restructuring:

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10.1. Total 5699000 Number of Equity shares of Rs.10/- each amounting Rs. 5,69,90,000/- to the Resolution Applicant and 1000 Number of Equrty shares of Rs.10/- each amounting Rs.10,000/- to any one of the promoters/Directors of the Resolution Applicant, as nominee of the Resolution Applicant. Hence the Corporate Debtor becomes a 100% subsidiary of the Resolution Applicant. Cancellation/extinguishment of shares of all existing Share Holders by making no^payment to them.

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11. Summary of Implementation Timelines

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sl.	Event	EstimatedTimeline
No.
1.	ApprovalofNCLTforthe Plan	OnNCLTApprovalDate
2.	Effective Date	NCLTApprovalDate
3.	Date ofSigningDefinitive Agreement	Within15daysof Effective Date
4.	ZeroDate	DateofSigningofDefinitive Agreementor90daysfromEffective Date
5.	Extinguishmentofsharesof existingShareHolders.	Within30Daysfromthe Zero Date or 90 daysfromEffective Date
6.	InfusionofFreshEquityby ResolutionApplicantsand issueoffreshequityshares	Within30DaysfromtheZeroDateor 90 daysfromEffective Date

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IA (IB) No.55/CB/202t IN CP (IB) No.168/CTB/2019

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In res: Resolution Plan of Swain Aluminum^{Pvt. Ltd}

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I Payment towards settlement I As contemplated under Section 7 Part of various Claims I^{g of this Plan.}

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12, Term of the plan & its monitor@ & sapenision:

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Term of theplan:

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Lz.t. The term of the Plan shall commence on the date on which the NCLT approves the Plan in accordance with section 31 of the Code and^sha11 continue until payment to all stakeholders as stipulated in Section 7 ofPat B has been done. Upon approval of the Plan by the NCLT, this Plan sha1l ipsofaao formpafi of the NCLT order.

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Management and control of the Corytorate Debtor during the Term:

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12.2. Pursuant to the approval of the Plan by the NCLT, Insolvency Professional, as decided by the COC & RA, shall be appointed as the '(ImplementingAgency"^{(IA) of the CorporateDebtor in order tomarLage} and conffol the business of the Corporate Debtor from the date of approval of the Plan by the NCLT and until the Closing Date, andfor such^purpose, shall have the powers of the Board vested in him.

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t2.3. A^((Monitoring Committee" (MC) comprising of^(a) representative/s of the CoC, (b) representative/s of the RA, and^(c) RP shall be formed to oversee implementation of the P1an. The Implementation Agenry shall act on the instructions ofMC. A1l decisions of the Monitoring Committee shall be taken by a majority of allits members.

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L2.4. The RP shall be paid the costs in consideration of fulfilling his obligations under this Plan; his fees should be same as during the CIRP^period.

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L2.5. The Monitoring Committee shall manage and control the Corporate Debtor as a going concern, in trust andfor the benefit of the creditors of the Corporate Debtor and the Resolution Applicant.

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13, Management and control of the Corporate Debtor after the Term

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13.1. On the Closing Date, the RA will acquire control over the Corporate Debtor, and shall thereafter, supervise the implementation of the Plan in accordance with its terms (to the extent outstanding).

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13.2, A11 powers of the Board of Directors of the Corporate Debtor under applicable laws shall be vested with the as re-constituted Board of Directors, who shall be entitled to exercise all powers of Board of Directors under applicable laws, including under Section 179 of the Companies Act, 20L3. Mr. Kunal Agrawal, Ms. Punam Agrawal and Mr. Ramesh Chandra Gupta would initially be appointed as the directors of the re-constituted Board of the Corporate Debtor.

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13.3. On and from the Closing Date, the management team of the Corporate Debtor (including any Key Managerial Personnel) shall be re-constituted by the Resolution Applicant in accordance with this Plan.

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L3.4. As of the ClosingDate, the Auditors of the Company shall be deemed to have vacated its office, and, a person nominated by the Resolution Applicant shall be designated and appointed as the Auditor of the Company.

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Reliefs and Concessions soaght, and orders thereon, are tabulated below,

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sl. No.	Waivers,ReliefsandExemptions soughtfromNCLT	Orders thereon
1.	A11relevant Govemment Authorities tograntrelief frompaymentofstamp dutyandapplicablefees(includingfees payabletothejurisdictionalRegistrar ofCompanies)forthesuccessful implementation ofthePlan (including fortheMerger,issuance andffansferof sharesordebentures and assignmentof Debt).	Notgranted
2_	SwainAluminiumPrivateLimited, theCorporateDebtor,andthe ResolutionApplicantshallbegranted anexemptionfromalltaxes,levies, fees,transfercharges,ffansfer premiums,andsurchargesthatarise from orrelatetoimplementationof the	Notgranted

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sl. No.	Waivers,ReliefsandExemptions soughtfromNCLT	Orders thereon
	ResolutionPlan,since paymentof theseamountsmaymakethe ResolutionPlanunviable.
J.	Waiverofanyincome-taxand MinimumAlternateTax(MAT) liabilityorconsequences (including interest,fine,penalty,etc)onthe CorporateDebtor,Resolution Applicant anditsshareholderson accountofvariousstepsasproposedin the Resolution Plan, including butnot limitedtoliabilitiesifarLy under Section4l(l),Section 56, Section43, Section43B,Section28,Section 115JBandSection79oftheIncome- taxAct,L961, including,without limitationwaiverofMATandincome taximplication arising duetowrite back/writeoffofliabilitiesinthebooks ofaccountsofCorporateDebtor withoutanyimpactonbrought forwardtaxand bookloss/ depreciation,pursuanttothis ResolutionPlan.	Grantedintermsofthe judgmentoftheHon'ble SupremeCourt in GhanashyamMishra andSons v.EdelweissAssetReconstruction CompanyLimited.l
4.	Anyrequirementstoobtainwaivers fromany TaxAuthorities includingin termsofsection 79oftheITActis deemedto havegrantedupon approval of thisResolutionPlanon theEffective Date.	Thisisfortheappropriate authorities toconsider.
5.	Anyapprovalsthat mayberequired fromGovernmentalAuthorities (includingtaxauthorities)in connectionwiththeimplementationof	Thecorporatedebtor under thesuccessfulresolution applicantshall applytothe appropriateauthorities,who

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t 2021 SCC Online SC 313 dated 13.04.2021

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sl. No.	'Waivers, ReliefsandExemptions soughtfromNCLT	Orders thereon
	theResolutionPlanincludingon accountofchangeinownership/ controlofCorporateDebtorshallbe deemedtohave beengrantedonthe EffectiveDate.	are requestedtoconsiderthe same keepinginviewthe letter and spiritofthe Insolvency&Bankruptcy Code,20t6,whichisto enableafresh startforthe corporate debtor.
6.	FromtheEffectiveDate, allinquiries, investigationsandproceedings, whethercivilorcriminal,suits, claims, disputes,proceedingsinconnection withCorporateDebtororaffairsof CorporateDebtor(includingthose initiated by Govemmental Authorities), pendingorthreatened, presentorfutureinrelationtoany periodpriortotheEffectiveDate,or arisingonaccountofimplementation ofthisResolutionPlan shallstand withdrawnanddismissedandall liabilities andobligationstherefore, whetheror notsetoutinthe balance sheetsoftheCorporateDebtor orthe profitandloss accountstatementsof theCorporateDebtorwillbedeemed tohavebeenwrittenofffully,and permanently extinguishedandno adverseorderspassedinthesaid mattersshouldapplytotheCorporate DebtorortheResolution Applicant. UponapprovalofthisResolution Plan,allnew inquiries,investigations, notices,suits,claims,disputes, litigations,arbitrationsorother judicial,regulatory,oradminisffative proceedingswillbedeemedtobe	Thissha1lbeintermsof section32AoftheInsolvency &BankruptcyCode,2016, nothingmoreandnothing less.

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sl. No.	Waivers,ReliefsandExemptions soughtfromNCLT	Orders thereon
	batedandwillnot beinitiatedor admittedagainstthe CorporateDebtor and/oritsnewmanagement in relationtoanyperiodpriortothe EffectiveDate.
7.	TheCorporateDebtorarudthe ResolutionApplicant(asits shareholder)shallbeentitled tomodify conffactswhich:(i)areenteredinto withpartieswhichpriortothe InsolvencyCommencementDate wererelated partiesof theCorporate Debtor, and(ir)imposeonerous conditionshinderingtheresolution processfor theCorporateDebtor.	Granted
8.	A11GovemmentAuthoritiestowaive theNon-Compliancesof theCorporate DebtorpriortotheEffectiveDate.	Blanketpermissionofthis kindcannotbegranted,since itislikelytohavesome repercussions.Specific difficulties may,however,be broughttothe noticeofthis AdjudicatingAuthorityfor orders.
9.	A11relevant Govemment Authorities tocontinuetomakeavatlablethe BusinessPermitsand the businessmay continuebeingcarriedoutasbeing caniedout priortotheInsolvency CommencementDate.	Section3t(4) of the Insolvency&Bankruptcy Codeprovidesaone-year windowfromthedateof approvaloftheresolution plantoobtainnecessary approvalsunder arlylaw. Thesuccessfulresolution applicant isexpectedtokeep thesetimelinesinmind.
10.	Neitherthe ResolutionApplicant, nor anyofitsAffiliatesorconnected	Granted.

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sl. No.	Waivers,ReliefsandExemptions soughtfromNCLT	Orders thereon
	persons,willbedisqualifiedfromor consideredineligible undertheCode forproposngand/or implementinga planinrelationtotheinsolvency resolutionofanyPerson(otherthan theCorporateDebtor), merelyon accountofthe implementationofthis PlanbytheResolutionApplicant.
11.	Itisprobablethatcertainofthe BusinessPermitsoftheCorporate Debtorhavelapsed,expired, suspended,cancelled,revokedor terminatedortheCorporateDebtor hasnon-compliancesinrelation thereto.Accordingly,allGovemment Authoritiestoprovidereasonable time-periodafterthe Effective Datein ordertoenableResolutionApplicant toassessthestatusoftheseBusiness Permitsandensurethat theCorporate Debtoriscompliantwiththe termsof suchBusinessPermitsandApplicable Law withoutinitiatingany investigations, actionsorproceedings inrelationtosuchnon-compliances andpermittheResolutionApplicant to continuetooperatethe businessofthe CorporateDebtor.	Section3l(4) of the Insolvency8.Bankruptcy Codeprovidesaone-year windowfromthedateof approvaloftheresolution plantoobtainnecessary approvalsunderarLylaw. Thesuccessfulresolution applicant isexpectedtokeep thesetimelinesinmind.
t2.	Itisassumedfromthe EffectiveDate, allaccountsoftheCorporate Debtor shallstand regularised andtheirAsset Classificationis"Standard"forthe purpose ofApplicableRBILaws.	ThisisfortheRBI toconsider keepingin viewtheletterand spiritoftheInsolvency& BankruptcyCode,2016, since theresolutionplanisbeing approvedtoenableafresh startfor theCorporate Debtor.

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sl. No.	Waivers,ReliefsandExemptions soughtfromNCLT	Orders thereon
13.	TheCentralBoardofDirectTaxesto- (i)nottake any otheractionswith respectto theffansactions contemplatedunderthisPlan (includingtheMergerandthesaleof collateral) underSection28LoftheIT Act (i1)exempttheResolution Applicant fromanyliabilitypursuant toSections56and170oftheITAct andiii)not levyanyTax(including minimumalternatetax)arising asa resultofgivingeffectto, orotherwise inrelation to,the Plan,inthe handsof CorporateDebtorortheResolution Applicant.	Thisisforthe Central Board ofDirectTaxestoconsider keepingin viewtheletterand spiritoftheInsolvency&. BankruptcyCode, 2016, since theresolutionplanisbeing approvedtoenableafresh startfor theCorporate Debtor.
14.	TheCentralBoardofExciseand Customs/Dept.ofGST&Central Excisenottotake anyactionswith respectto the ffansactions contemplatedunderthisPlan (includingtheMergerandthesaleof Collateral)underSection81ofthe Central Goods andServicesTax Act, 20L7andnot toimpose anysuccessor liabilityontheResolution Applicant and the CorporateDebtor.	Thisisfortheappropriate authoritiesto consider keepinginviewtheletterand spiritoftheInsolvency& BankruptcyCode,2016, since theresolutionplanisbeing approvedtoenableafresh startfor theCorporate Debtor.
15.	Neitherthe ResolutionApplicant nor theCorporateDebtor,northeir respectivedirectors,officersand employees appointedasonorafter the EffectiveDateshall beliableforany violations, liabilities,penalties, interestsonstatutorypaymentsand/ orfineswithrespectto orpursuant to anyorderofanyGovernmental Authorityoronaccountofnon-	Granted,inaccordancewith section32Aof theInsolvency &BankruptcyCode, 2076.

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st. No.	Waivers,ReliefsandExemptions soughtfromNCLT	Orders thereon
	complianceofApplicable Laws bythe CorporateDebtororduetothe CorporateDebtor nothavinginplace requisite approvalsandlicensesto undertakeitsbusinessaspel ApplicableLaw.
16.	Al1 GovernmentAuthoritiestogrant any relief,concessionordispensation asmayberequiredfor implementation ofthetransactions contemplatedwder thePlaninaccordancewithitsterms andconditions.	Thisisfortheappropriate authoritiesto consider keepinginviewtheletterand spiritoftheInsolvency& BankruptcyCode,2016, since theresolutionplanisbeing approvedtoenableafresh startfor theCorporate Debtor.
77.	Thejurisdictional Registrarof Companiestotakeonrecordand implementthePlan, upon approvalof thePlanbyNCLT,withoutanyfurther compliances	Itisnotthedutyofthe jurisdictionalRegistrar of Companiestoimplementthe Plan.Itshall be thedutyof thecorporatedebtorunder thesuccessfulresolution applicanttoensurethatall filingsnecessaryin connectionwith the implementationofthePIan arcmadewiththeRegistrarof Companies,alongwiththe applicablefilingfee.
18.	A11creditorsoftheCorporate Debtor towithdrawal7legalproceedings commencedagainsttheCorporate Debtor inrelation to claims,including allcriminalproceedings,proceedings underSection138oftheNegotiable InsffumentsAct,1881and proceeding underSARFAESIandRDDBFI,	Granted,sincetheintention of theInsolvency& BankruptcyCode istoenable freshstartforthecorporate debtor.

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sl. No.	Waivers,ReliefsandExemptions soughtfromNCLT	Orders thereon
	within30 (thtuty) daysof the Effective Date.
19.	TheResolutionApplicantreservesall rightstoundertakeanyexpansionin the project,whichisnotgiveninthe ResolutionPlan,oftheCorporate DebtorifinfuturetheResolution Applicantgetsanyopportunityforthe benefit ofallthestakeholders.	Thisisnotinanatureofany relief, waiverorconcession. Therefore,noordersofthe AdjudicatingAuthorityare necessary.Inanysuchcase, alldue complianceswiththe applicable laws shallbemade bythe corporate debtor under newmanagement, sincethis exerciseis going tobedehors theResolutionPlan itself.
20.	TheCorporateDebtor,Swain AluminiumPrivateLimited,shall continueasagoingconcernasbefore. There is goingtobenochangeinthe legalstatusoftheCorporate Debtor. Therefore,theCorporateDebtoris eligibletocarryforwardlossesu/s72 ofIncomeTaxAct.On approval of the planbytheHon'bleNCLT,the CorporateDebtorshallcarry forward suchlossesasper theprovisions ofthe Income TaxAct.	Itisforthecorporatedebtor tosatisfrtheincometax authoritiesinthisregard.No ordersoftheAdjudicating Authorityare necessary.

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15, Conclasions:

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15.1. On hearing the submissions made by the Ld. Counsel for the Resolution Professional, andperusing the record, we find ttrat the Resolution Plan has been approved with 100% voting share. As per the CoC, the 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 Resolution Professional and the Resolution Applicant for making the plan effective after approval by this Bench.

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t5.2. 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 Code and also complies with regulations 38 and 39 of the CIRP Regulations.

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15.3. As far as the question of granting time to comply with the statutory obligations /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.

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L5.4. In case of non-compliance of this order or withdrawal of Resolution Plan, the performance gvarurrtee amount aheady^paid by the Resolution Applicant shall stand forfeited, in addition to the Resolution Applicant berng liable for any other action as per law.

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15.5. Subject to the observations made in this Order, the Resolution Plan in question is hereby approved by this Bench.

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15.6. 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.

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t5.7. The Moratorium imposed under section 14 of the Code shall cease to have effect from the date of this order.

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

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15.9. Liberty is hereby granted for moving any Application if required in connection with implementation of this Resolution Plan.

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15.10. A copy of this Order is to be submitted to the Office of the Registrar of Companies, Cuttack.

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

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t5,12. The Resolution Professional is further directed to handover all records, premises/factories/documents to the Resolution Applicant to finalise the further line of action required 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 of action required for starting of the operation.

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15.13. Accordingly, the instant application IA (IB) No.SSICTB /2021shall stand disposed of.

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15.14. 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.

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