Anish Niranjan Nanavaty The Resolution Professional - Hence, this Tribunal clarifies that the Applicant/RP can sell assets of the Corporate Debtor (as described in Para 1 above) under Regulation 29 of the CIRP Regulations after submission of the resolution plan for approval by this Tribunal.

 NCLT Mumbai-1 (07.12.2023) in Anish Niranjan Nanavaty The Resolution Professional [I.A. 782 OF 2022 in C.P.(IB) No. 1387/MB/2017] held that;

• Accordingly, in terms of Section 60(5), we hold that this Tribunal can pass an order on any question of priorities arising in relation to insolvency resolution of the Corporate Debtor under the Code. 

• Hence, this Tribunal clarifies that the Applicant/RP can sell assets of the Corporate Debtor (as described in Para 1 above) under Regulation 29 of the CIRP Regulations after submission of the resolution plan for approval by this Tribunal. 

Excerpts of the Order;     

1. This IA 782/2022 is filed by Mr. Anish Ranjan Nanavaty, Resolution Professional (Applicant) of M/s Reliance Communications Limited (“Corporate Debtor”) for seeking approval of this Tribunal to conduct the sale of following assets in accordance with the terms approved by CoC.

# 2. A resolution plan submitted for the Corporate Debtor by a resolution applicant has been approved by the COC pursuant to the meeting dated March 2, 2020, and in this regard, an application filed by the Applicant under Section 30(6) of the Code on March 6, 2020 is currently pending consideration of this Tribunal, and the adjudication thereof is kept pending on account of the questions framed by the Supreme Court in judgement dated September 1, 2020 regarding the insolvency of telecom companies being at large initially before the Hon'ble NCLAT and now before the Hon'ble Supreme Court.

# 3. Accordingly, there is uncertainty in the timelines for completion of the CIRP of the Corporate Debtor. In view of the aforesaid as well as continued depreciation of certain unencumbered assets of the Corporate Debtor, such assets as set out above are proposed to be sold under Regulation 29 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations") to prevent accrual of burgeoning maintenance costs and statutory dues in respect of the Assets and ensure better realization of value for the Assets.

# 4. The said Assets are also proposed to be monetised under the provisions of the resolution plan. The conduct of the sale of Assets was deliberated and discussed in the meetings of the COC. Pursuant to the meeting of the CoC held on January 28, 2022, the Applicant had placed the agenda for conduct of sale of assets before the CoC for e-voting on February 3, 2022 which concluded on March 07, 2022, and which has been approved by the CoC with 74.31% of the voting shares of the members. The Resolution Applicant has also provided written consent for such conduct of sale process for the Assets.

# 5. While the resolution plan is pending approval by this Tribunal, the resolution professional, in terms of the proviso to sub-section (1) of Section 23 is empowered to continue to manage the operations of the corporate debtor after the expiry of the CIRP period, until an order approving the resolution plan under sub-section (1) of section 3 l or appointing a liquidator under Section 34 is passed by this Tribunal. Accordingly, while the requirements under Regulation 29 of the CIRP Regulations for undertaking the sale of the Assets are fulfilled, however, in view of the fact that the resolution plan is already approved by the CoC and is pending consideration with this Tribunal, this application has been preferred seeking the approval of this Tribunal to conduct the sale of the Assets in accordance with the terms as approved by the CoC. The proceeds of the sale of the Assets shall be utilised in accordance with the priority and manner under the approved resolution plan or liquidation, as applicable, treating the proceeds of sale as unencumbered assets of the Corporate Debtor in the same manner as the corresponding Assets.

# 6. We have heard the Learned Counsel and perused materials available on record.

# 7. We find that the CoC has approved the sale of assets described in Para 1 above, in view of uncertainty attached to the approval of plan and the Resolution Applicant has also given its consent to such sale. Further, the Applicant has asserted that the proceeds of such sale if permitted shall be distributed in accordance with the provisions of approved plan or Section 53 of the Code, as the case may be.

# 8. We have considered the submissions and find that the Resolution Plan filed before this Tribunal is pending for approval in view of issue pertaining spectrum being sub-judice before Hon’ble Supreme Court. Accordingly, in terms of Section 60(5), we hold that this Tribunal can pass an order on any question of priorities arising in relation to insolvency resolution of the Corporate Debtor under the Code. Hence, this Tribunal clarifies that the Applicant/RP can sell assets of the Corporate Debtor (as described in Para 1 above) under Regulation 29 of the CIRP Regulations after submission of the resolution plan for approval by this Tribunal. Further, this Tribunal accord its approval to the Applicant to conduct the sale of the Assets of the Corporate Debtor in terms of Regulation 29 of the CIRP Regulations, which sale proceeds shall be treated as unencumbered assets of the Corporate Debtor and be distributed during implementation of the approved resolution plan or in liquidation, as the case may be.

# 9. In view of forgoing, the I.A. 782/2022 is allowed

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