# Approval of Resolution Plan - Polycoat India Pvt. Ltd. - In the matter of Akashganga Processors Pvt. Ltd. vs. Shri Ravindra Kumar Goyal & Ors.

> NCLAT judgment dated 2023-07-13. Citation: TCN-2023-NCLAT-00377. The appeal challenges an order by the Adjudicating Authority that rejected an application for…

- **Court:** NCLAT
- **Order date:** 13 Jul 2023
- **Citation:** TCN-2023-NCLAT-00377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/approval-of-resolution-plan-polycoat-india-pvt-ltd-in-the-matter-of-akashganga-p-c57f63b5

## Summary

### Background

The appeal challenges an order by the Adjudicating Authority that rejected an application for approval of a Resolution Plan, citing violations of Section 30(2)(e) and (f) of the I&B Code.

## Facts

The appeal was filed against an order dated August 23, 2022, where the Adjudicating Authority rejected I.A. No. 680 of 2021, an application by the Resolution Professional for approval of a Resolution Plan. The rejection was based on violations of Section 30(2)(e) and (f) of the I&B Code, specifically concerning the non-allocation of any amount to certain operational creditors, which was deemed discriminatory. The appellant argued that the operational creditors who received no allocation were not aggrieved and had not filed any appeal or objection. It was also contended that payments made to Gujarat Industrial Development Corporation (GIDC) and Surat Municipal Corporation were for keeping the corporate debtor a going concern, and thus, not a violation of law.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the Resolution Plan due to alleged …

**Ratio:** A resolution plan cannot discriminate between similarly situated creditors within the

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**Reasoning:** The NCLAT found that while differential payments between classes of creditors (financial

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**Interpretation:** The court interpreted Section 30(2)(e) and (f) of the I&B Code, in light of

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**Application:** The NCLAT applied this interpretation by directing that the amount conceded by

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Akashganga…
- **Respondents:** RAVINDRA KUMAR…; Ravindra Kumar…
- **Advocates:** For Appel…; Abhijeet…; +10 more

## Timeline

- **August 6, 2021 — CoC Approval of…**: The Resolution Plan was approved by the…
- **August 23, 2022 — Adjudicating Authority's…**: The Adjudicating Authority rejected the application (I.A. No. 680 of 2021) for approval…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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