# In the matter of Accord Life Spec Private Limited Vs. Orchid Pharma Limited & Ors. CA(AT)(Ins)No. 761 of 2019

> NCLAT judgment dated 2019-11-13. Citation: TCN-2019-NCLAT-00154. The case involves a challenge to the approval of a resolution plan submitted by M/s. Dhanuka…

- **Court:** NCLAT
- **Order date:** 13 Nov 2019
- **Citation:** TCN-2019-NCLAT-00154
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/accord-life-spec-private-limited-vs-orchid-pharma-limited-ors-ca-55447e84

## Summary

### Background

The case involves a challenge to the approval of a resolution plan submitted by M/s. Dhanuka Laboratories Ltd. in the Corporate Insolvency Resolution Process (CIRP) against M/s. Orchid Pharma Limited. An unsuccessful resolution applicant, Mrs. J. Srinisha, initially filed an application seeking reconsideration of the resolution plan. The Adjudicating Authority (National Company Law Tribunal), Chennai, dismissed this application. The approved resolution plan was challenged by the Appellant, Accord Life Spec Private Limited, in two appeals: Company Appeal (AT) (Insolvency) No.761 of 2019 and No.762 of 2019.

## Facts

M/s. Orchid Pharma Limited was undergoing Corporate Insolvency Resolution Process (CIRP). Mrs. J. Srinisha, an unsuccessful Resolution Applicant, sought reconsideration of the Resolution Plan submitted by M/s. Dhanuka Laboratories Ltd., which was rejected by the Committee of Creditors (CoC). The Adjudicating Authority dismissed Mrs. Srinisha's application. Accord Life Spec Private Limited, the Appellant, challenged the Adjudicating Authority's decision, arguing that the approved 'Resolution Plan' submitted by M/s. Dhanuka Laboratories Ltd. was not viable or feasible. The Appellant contended that the 'Resolution Value' (Rs.570 crores) was significantly lower than the 'Liquidation Value' (Rs.1309 crores). The Appellant also disputed the inclusion of equity infusion as

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## Issues and analysis

### Issue 1: Whether the approved 'Resolution Plan' submitted by M/s. Dhanuka Laboratories Ltd. is viable and …

**Ratio:** A resolution plan must adhere to the objectives of the I&B Code, including maximizing

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**Reasoning:** The court found that the amount offered to stakeholders, including financial and

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**Interpretation:** The viability and feasibility of a resolution plan are assessed based on its

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**Application:** In this case, the resolution plan was deemed not viable because the 'Resolution

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** M/S. ACCORD LIFE…
- **Respondents:** M/s. Orchid…

## Timeline

- **2019-06-27 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Division Bench, Chennai…
- **2019-02-01 — Order by Appellate…**: Second round of negotiations began on the basis of the order passed by this Appellate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(4) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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