# In the matter of Arun Mittal & Anr. Vs. Narmada Cereals Pvt. Ltd. & Ors. Comp. App. (AT) (Ins.) No. 161 of 2022

> NCLAT judgment dated 2022-02-18. Citation: TCN-2022-NCLAT-00618. The appeal was filed against the judgment and order of the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 18 Feb 2022
- **Citation:** TCN-2022-NCLAT-00618
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/arun-mittal-anr-vs-narmada-cereals-pvt-ltd-ors-comp-app-93d2b774

## Summary

### Background

The appeal was filed against the judgment and order of the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, Court III dated 04.01.2022, which directed the liquidation of the Corporate Debtor, M/s. Narmada Cereals Pvt. Ltd. The appellants, who are promoters of the Corporate Debtor, filed a Resolution Plan, and there were other three Resolution Plans considered by the Committee of Creditors (CoC). The appellants were aggrieved by the order.

## Facts

The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, Court III, ordered the liquidation of M/s. Narmada Cereals Pvt. Ltd. on 04.01.2022. Arun Mittal & Anr., promoters of Narmada Cereals Pvt. Ltd., filed an appeal against this order. The Appellants' Resolution Plan was for Rs. 37 Crore, which they claimed was higher than the liquidation value. The 11th CoC meeting considered the plan on 17th, 18th, and 20th September, 2021. The CoC ultimately rejected the plan via e-voting with 100% voting of the Financial Creditors. The Corporate Debtor initiated the proceedings under Section 10. The CoC was not willing to give the Appellants an opportunity to enhance their plan. The appellants claimed that other three plans were also put to vote which were

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order for …

**Ratio:** The commercial wisdom of the CoC is paramount and not subject to judicial review except

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**Reasoning:** The NCLAT stated that it is well settled that the CoC has the power to take a decision

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**Interpretation:** The court interpreted the provisions related to the CoC's decision-making power

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**Application:** The court applied the principle of the CoC's commercial wisdom to the facts of

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## Parties

- **Judges:** Ashok Bh…; V. P. S…
- **Appellants:** Arun Mi…
- **Respondents:** Narmada Cereals…

## Timeline

- **2022-01-04 — Adjudicating Authority…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, Court III,…
- **2021-09-17 — 11th CoC M…**: The 11th CoC meeting was held on 17th, 18th, and 20th September, 2021, where the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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