Page 80 - GSTL_18th June 2020_Vol 37_Part 3

294 GST LAW TIMES [ Vol. 37
There is also this question about indemnity for successful resolution
applicant. The amendment now is clearly making it binding on the Gov-
ernment. It is one of the ways in which we are providing that. The Govern-
ment will not raise any further claim. The Government will not make any further
claim after resolution plan is approved. So, that is going to be a major, major sense
of assurance for the people who are using the resolution plan.”
(Emphasis supplied)
13. It was urged that the message was conveyed loud and clear by the
Hon’ble Minister for Finance in this debate that the Government will not raise
any further claim of its dues after the resolution plan is approved. This amend-
ment was introduced with the intention of lending assurance to the people, who
intend to participate in the resolution proceeding.
14. The petitioners counsel contended that the issue regarding the reso-
lution plan being final and binding on all parties; whether or not they had been
heard by the resolution professional or the COC, has been laid to rest by Hon’ble
the Supreme Court in the case of Committee of Creditors of Essar Steel India Ltd.
Through Authorised Signatory v. Satish Kumar Gupta & Ors. reported in 2019 (16)
SCALE 319. Reliance in support of this content was placed on the following ex-
tracts from the above Hon’ble the Supreme Court judgment :
“20. The role of the resolution professional in the revival of the corporate
debtor is stated in detail in several Sections of the Code read with the 2016
Regulations
21. The ball starts rolling with the Adjudicating Authority, after admitting
an application under either Sections 7, 9 or 10, ordering that a public an-
nouncement of the initiation of the CIRP together with calling for the sub-
mission of claims Under Section 15 shall be made - see Section 13(1)(b) of
the Code. For this purpose, the Adjudicating Authority appoints an interim
resolution professional in the manner laid down in Section 16 - see Section
13(1)(c) of the Code. In the public announcement of the CIRP, Under Sec-
tion 15(1), information as to the last date for submission of claims, as may
be specified, is to be given; details of the interim resolution professional,
who shall be vested with the management of the corporate debtor and be
responsible for receiving claims, shall also be given, and the date on which
the CIRP shall close is also to be given-see Section 15(1)(c), (d) and (f) of the
Code. Under Section 17 of the Code, the management of the affairs of the
corporate debtor shall vest in the interim resolution professional, the Board
of Directors of the corporate debtor standing suspended by law.
Among the important duties of the interim resolution professional is the re-
ceiving and collating of all claims submitted by creditors and the constitu-
tion of a Committee of Creditors-see Section 18(1)(b) and (c) of the Code.
Under Section 20 of the Code, the interim resolution professional is to make
every endeavour to protect and preserve the value of the property of the
corporate debtor and manage the operations of the corporate debtor as a
going concern.
22. At the first meeting of the Committee of Creditors, which shall be held
within 7 days of its constitution, the Committee, by majority vote of not less
than 66% of the voting share of financial creditors, must immediately re-
solve to appoint the interim resolution professional as a resolution profes-
sional, or to replace the interim resolution professional by another resolu-
tion professional-see Section 22(1) and (2) of the Code. Under Section 23(1),
the resolution professional shall conduct the entire CIRP and manage the
operations of the corporate debtor during the same. Importantly, all meet-
ings of the Committee of Creditors are to be conducted by the resolution
professional, who shall give notice of such meetings to the members of the
Committee of Creditors, the members of the suspended board of directors,
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